New surveys point to climate of vulnerability from psychological and technological openings
The outbreak of COVID-19 and its impact on society fuelled a surge in tech-mediated fraud last year, according to figures from the Canadian Anti-Fraud Centre. And if the results of two new surveys are anything to go by, the trend isn’t going to de-escalate any time soon.
In a new survey of Canadians conducted by Interac Corp., nearly six in 10 (57%) respondents said they’ve seen an increase in fraud attempts over the past year. More than half (55%) expressed concerns people are becoming more vulnerable to fraud due to rising isolation, and almost the same number (52%) pointed to the increased time spent in online activities like virtual learning, shopping, banking, socializing, and accessing government services.
Those results are in line with another study conducted by Equifax Canada, which found 78% of Canadians reported feeling exposed to online fraud. Just over half (54%) cited concerns of being targeted by fraudsters while using “on-the-go” access points like public WiFI and ATMs.
Fraudsters exploiting psychological gaps
“Fraudsters and identity thieves are always looking to take advantage of a crisis,” said Julie Kuzmic, director of Consumer Advocacy, Equifax Canada. “It’s understandable to feel vulnerable given these difficult times, but we must remain vigilant in the fight against fraud and identity theft.”
Fifty-eight per cent of respondents to the Interac survey said that stress levels have shot up because of the pandemic, creating additional points of vulnerability for scammers to take advantage of. Amid the COVID-19 driven disruption in the sense of normalcy, coupled with stressors including concerns with health, family, work, and debt – as well as fears of fraud itself – people are less capable of keeping their guards up against clever attempts at deception.
“Stress and anxiety put us into fight or flight mode, maximizing our potential to respond quickly to a threat,” said Dr. Christine Purdon, a psychologist from the University of Waterloo, who has a special focus on anxiety and how it manifests in terms of cognition and behavioural indicators. “However, this can lead us to make decisions more quickly and with less deliberation – something fraudsters know and act on.”
Younger Canadians feeling safer – but are they?
Looking at demographic trends, Equifax Canada found women were more likely than men to feel vulnerable to fraud, whether it’s on the go (57% of women vs. 50% of men) or at home (37% vs. 28%).
Through an age lens, Equifax Canada found respondents aged 55 and older were more likely than their younger counterparts to say they felt vulnerable to fraud on the go (60% of Canadians who are at least 55 years old vs. 50% of younger Canadians) and at home (39% vs. 28%).
But the feelings of susceptibility don’t appear linked to actual incidents of fraud amid COVID-19. In the Interac survey, just over half of Gen Z adults (52%) and Millennials (53%) reported that they themselves, someone close to them, or both have been defrauded in the past year. In contrast, just 30% of seniors aged 65 and older said they’ve been victimized.
“While we anticipated the isolation, financial hardship, and stress from the pandemic would impact Canadians' defences against fraud, we were surprised to see many groups feeling confident in how they spot scams, despite the rise in fraud during these tough times,” said Rachel Jolicoeur, director, Fraud Mitigation and Strategy at Interac Corp.
