Uncovered: The Surge of Financial Fraud Cases in Canada, 2019

By Samuel Perreault

According to a new Statistics Canada study, financial fraud cases are the most common form of crime in Canada with over $16 billion in losses reported among individuals between 2015 and 2019. The report, titled Self-reported fraud in Canada, 2019, offers valuable insights into the extent, demographics, and consequences of fraud incidents across the nation.

Highlights

• Fraud is the most frequently reported personal crime.
• The highest incident rate of fraud was in Alberta.
• Losses due to fraud against individuals amounted to over $16 billion between 2015 and 2019.
• Only half of fraud cases are ever reported to the police.
• Saskatchewan and Quebec have the highest reporting rates for fraud to the authorities.

Introduction

Self-reported fraud in Canada, 2019 provides an extensive analysis based on the General Social Survey on Canadians’ direct experiences with fraud and the prevalence, consequences, and reporting patterns of fraud occurrences.

Fraud is the most common crime

Among the various forms of crime reported, fraud stands out as the most common. It accounts for 23% of all personal victimizations between 2015 and 2019.

- Fraud occurs in 23% of personal victimizations between 2015 and 2019.
- fraud is the most common crime reported.

Fraud in Alberta

Alberta has the highest incident rate of fraud compared to all other provinces and territories, with 23% of Canadians reporting having experienced fraud in the past five years.

- Alberta has the highest incident rate of fraud (23%).
- Highest rate of fraud due to several factors, primarily uncertain.

Losses related to fraud against individuals

Between 2015 and 2019, Canadians reported aggregate financial losses of over $16 billion due to fraud. These losses result from various fraud schemes like identity theft, credit card fraud, and fraudulent transactions.

- $16 billion in losses reported due to fraud between 2015 and 2019.
- Fraud losses from identity theft, credit card fraud, and other schemes.

Fraud is rarely reported to the police

Only 47% of reported fraud cases were ever reported to the police or other authorities, highlighting the importance of self-reporting.

- Only 47% of fraud cases were reported to the police or authorities.

More victims of fraud in Saskatchewan and Quebec reported incidents to the police

Individuals in Saskatchewan and Quebec were the most likely to report fraud cases to the authorities, with 56% and 54%, respectively.

- Individuals in Saskatchewan and Quebec were the most likely to report fraud cases to the authorities (56%, 54%).
- Higher reporting rates due to reasons like effective law enforcement and concern for accountability and justice.

Text box 1: Police-reported fraud

According to police-reported crime data, fraud cases represent more than half (52%) of all reported crime in Canada. While self-reported data reveals that fraud is even more prevalent, it is important to note that a significant number of fraud incidents go unreported to the authorities.

Postsecondary graduates and high-income earners targeted by fraudsters

The study also reveals that post-secondary graduates and high-income earners are disproportionately targeted by fraudsters.

- Postsecondary graduates and high-income earners are targeted by fraudsters.
- Higher online presence and exposure to potential fraud schemes and scams contribute to this correlation.

Internet use is associated with a risk of being a fraud victim

Furthermore, individuals who use the internet frequently are more likely to report fraud cases.

- Internet use is correlated with a higher risk of fraud victimization.
- More frequent online activities put individuals at risk of being targeted.

First Nations people, Inuit, and francophones are less likely to report fraud cases

Factors like age, ethnicity, and language also play a role in fraud victimization as Indigenous peoples, Inuit, and francophone Canadians are less likely to report fraud cases.

- Indigenous peoples, Inuit, and francophone Canadians are less likely to report fraud cases.
- Reasons for disparity include lower online access, language barriers, and a preference for informal reporting channels.

People who experienced intimate partner violence are more likely to have been victims of fraud

The study also discovered an unexpected connection between fraud and intimate partner violence. People who had experienced intimate partner violence were significantly more likely to report fraud cases.

- People who experienced intimate partner violence are more likely to have been victims of fraud.
- Reasons for this connection are unclear.

Many victims of fraud do not know how their personal information was acquired

Nearly two in five victims of fraud reported not knowing how their personal information was acquired, emphasizing the importance of maintaining awareness and diligence when handling personal information online.

- Nearly two in five victims of fraud did not know how their personal information was acquired.
- Personal information is important and must be handled with care and diligence online.

The vast majority of people took steps to protect their personal information

Despite being victimized by fraud, most Canadians took measures to protect their personal information and prevent future losses.

- Most Canadians took steps to protect their personal information.
- Measures range from simple actions like regularly updating passwords to more complex solutions like employing credit monitoring services.

People who were victims of fraud are more likely to take protective measures

Victims of fraud were more likely to take protective measures than those who had not been victimized before, highlighting the potential long-term impact of fraud on individuals’ lives.

- Victims of fraud were more likely to take protective measures.
- This emphasizes the profound impact of fraud on individuals’ lives.

Few people considered their personal information very well protected against fraud

Although most people reported taking steps to protect their personal information, only 24% of respondents considered their personal information to be very well protected against fraud.

- Only 24% of respondents considered their personal information to be very well protected against fraud.
- Emphasizes the need for increased awareness, education, and prevention efforts.

Nearly three-quarters of the population perceives an increase in fraud

Finally, three out of four Canadians believe that fraud has become more prevalent in recent years. This growing perception emphasizes the need for increased awareness, education, and prevention efforts to limit the impact of fraud on vulnerable populations.

- Over three-quarters of the population believe that fraud has become more prevalent.
- This growing perception highlights the need for increased awareness, education, and prevention efforts.

Conclusion

In conclusion, the Self-reported fraud in Canada, 2019 study revealed that fraud remains the most common crime in Canada, with significant financial losses impacting individuals. Continued efforts in reporting, prevention, and addressing unique challenges faced by vulnerable populations are essential.