Fraud fears change how Canadians shop, apply and invest as advisors step into prevention role
More than half of surveyed Canadians said they were targeted by fraud between August and December 2024, according to TransUnion’s H1 2025 Update to the State of Omnichannel Fraud Report.
Of the 1,000 Canadians surveyed, 56 percent said they received fraudulent email, online, phone or text messaging attempts. Nine percent of those who were targeted said they became victims.
17 percent of respondents said they lost money to such scams in the prior 12 months.
TransUnion noted the number of victims may be higher due to unawareness of being targeted.
According to Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada, “Our research indicates that many Canadians don’t take the proper steps if they have fallen victim to Digital Fraud.”
He advised victims to notify their bank or credit card provider, change passwords, place a fraud alert with credit bureaus, report to the Canadian Anti-Fraud Centre, and, in cases involving personal data or large losses, contact police.
What are the fraud methods?
Among those targeted in the second half of 2024, phishing was the most common method, reported by 43 percent of respondents. This includes deceptive emails, websites, or social posts impersonating legitimate sources.
Other top-reported fraud schemes included:
-
Smishing (fraudulent texts): 40 percent
-
Vishing (fraudulent calls): 35 percent
-
Scams on legitimate third-party seller platforms: 19 percent
How Canadians respond
Among those who reported being defrauded via email, text, online or phone:
-
51 percent contacted companies like card issuers or retailers
-
48 percent froze their credit
-
29 percent placed a fraud alert on their credit report
-
16 percent called police
-
15 percent contacted a credit bureau
-
13 percent took no action
Despite some Canadians acting quickly, TransUnion found that 13 percent of victims did nothing after falling for a scam.
Changing online behaviours
According to the report:
-
91 percent said data security is important when deciding who to do business with online
-
46 percent ranked personal data security as their top concern, ahead of cost savings (25 percent) and product/service quality (19 percent)
-
70 percent would not return to a website after a fraud concern
-
31 percent had switched websites due to fraud or security concerns
-
39 percent said fraud/security concerns were a top reason for abandoning an online shopping cart
-
35 percent abandoned a financial or insurance product application before completion
-
16 percent cited excessive security steps as a reason to abandon online purchases
What can financial advisors do?
According to Wealth Professional, advisors are not only responsible for protecting their own systems but also for guiding clients on fraud awareness.
In an article titled “What cybersecurity risks do financial advisors face?”, experts emphasized the need for advisors to use secure email providers, encrypted websites, strong passwords, and antivirus software, while also educating clients on identifying phishing, smishing, and vishing attempts.
Wealth Professional also reported that advisors should assess third-party vendors and monitor how client data is handled.
Following the Mackenzie data breach, cybersecurity experts stressed that firms must ask vendors about their data encryption protocols, and advisors should discuss this transparency with clients.
Additional tools are available. Wealth Professional noted that New SRO (the national self-regulatory body for investment dealers and mutual fund dealers) launched a cybersecurity self-assessment tool for firms to evaluate their vulnerabilities and enhance security protocols.
Boudreau concluded, “While cybercriminals will attack at any time using any channel, they appear to focus on channels most popular in the regions they are targeting.”
He said fraudsters exploit the digital platforms Canadians use most in their personal and professional lives—making vigilance essential.
