Younger Canadians drive surge in self-reported fraud cases
First-party fraud – where individuals deliberately misrepresent their own financial information – rose 31% year over year in Canada between the fourth quarter of 2024 and the fourth quarter of 2025, according to new data from Equifax Canada.
The company’s latest Market Pulse Fraud Trends and Insights report, released Tuesday, found fraud rates were highest in Ontario and Alberta and more pronounced among younger Canadians. The findings signal a broader shift in the nature of financial fraud, with a growing share of risk now coming from applicants using their own identities while providing false or exaggerated information.
“This concerning growth in first-party fraud activity is a trend no lender can afford to ignore,” said Carl Davies, head of fraud and identity at Equifax Canada. “Traditional third-party attacks remain prevalent, but we are also seeing more cases where consumers appear to be manipulating their own information to gain access to credit or banking products.”
Credit cards hardest hit
First-party credit card fraud nearly doubled year over year, rising from 0.08% in Q4 2024 to 0.15% in Q4 2025. Contradictory or mismatched data submitted by applicants became the dominant form of fraud in the category, increasing from 59% of first-party cases to 77% over the same period. Ontario reported the highest regional exposure, with fraud-related credit losses in the sector reaching as much as $123 million.
A similar pattern emerged in banking and deposits. Third-party fraud attempts in the sector declined from 0.45% to 0.32%, while first-party fraud rose from 0.51% to 0.68%. Cases involving falsified financial information jumped from 1.5% to 21% of first-party cases, while account abuse increased from 14% to 24%.
Davies said artificial intelligence tools are being deployed to counter the trend. “AI-based technology helps to detect falsified documents and identities,” he said. “As fraud tactics evolve, Equifax offers reliable AI-powered tools that can help lenders identify both third-party attacks and signs that an applicant may be misrepresenting their financial position.”
Mortgages, auto loans decline
Not all categories trended upward. Auto application fraud fell 19.4% year over year, while mortgage fraud declined 12.5%. However, consumers aged 26 to 45 accounted for the largest share of suspected fraudulent mortgage applications, while those aged 35 and under represented the highest share of fraud-related credit losses in auto delinquency balances.
The Equifax data arrives as Ottawa moves to address fraud at the federal level. In 2025, the Canadian Anti-Fraud Centre reported that Canadians lost over $704 million to fraud, with total reported losses since 2022 now surpassing $2.4 billion, and experts estimate only 5% to 10% of scams are ever reported.
