Canadians Lose $123 Million to Identity Fraud in the First Quarter of 2024

Your data is stored across countless databases for various purposes, making it a prime target for criminals. With access to your personal information, bad actors can drain your bank account and damage your credit. Identity fraud stands out as one of the most pervasive and damaging threats. In fact, the first quarter of 2024 has proven to be particularly costly for Canadians. According to Stocklytics.com, they lost $123 million during that period.

Stocklytics financial analyst, Edith Reads commented on the findings:

Identity fraud poses a significant threat to both individuals and organizations in Canada, with its rise reflecting the evolving tactics of cybercriminals in exploiting vulnerabilities.

Stocklytics financial analyst, Edith Reads

What is Identity Fraud?

Fraud is defined as an act of deceiving for financial or personal gain. It can be carried out externally by threat actors across the globe or internally via your employees exploiting their access privileges.

Identity fraud occurs when someone wrongfully obtains and uses another person’s data. This includes their name, Social Insurance Number (SIN), credit card information, or other identifying details, typically for financial gain. 

Furthermore, the rise of digital transactions during the pandemic brought a new reality for Canadians. Increased transactions meant more opportunities for fraudsters, and suspected digital fraud attempts skyrocketed 202% from 2019 to 2023.

Fraudsters employ various means to steal personal information. This includes phishing emails, data breaches, and social engineering tactics. Armed with this sensitive data, criminals can open fraudulent accounts, make unauthorized purchases, and even commit more severe crimes under the victim’s identity.

Eradicating Fraud

As technology advances, fraudulent scams will persistently evolve and become more intricate. KPMG, a Canadian leader in delivering audits, stands ready to assist organizations in managing risks and setting up controls to thrive and earn the trust of their stakeholders.

Additionally, in response to the escalating threat of identity fraud, businesses and organizations prioritize cybersecurity investments to fortify their defenses against cyber threats. 

At the core of these efforts should be the continuous education of employees, customers, and other stakeholders, to create and sustain a security culture.