AI-Driven Fraud Drains Profits from Canadian Companies, Survey Finds

Nearly three-quarters of Canadian organizations lost up to five per cent of their annual profits last year to fraud enabled by artificial intelligence, according to new polling data from KPMG Canada. The survey of 251 business leaders highlights a rapidly evolving threat landscape where cybercriminals are using sophisticated tools to bypass traditional corporate defences.

Background and Context

The research underscores a growing vulnerability in the private sector as fraudsters adopt emerging technologies. While digital fraud has long been a concern, the integration of AI has allowed for scams that are harder to detect and quicker to execute. The findings indicate that 72 per cent of organizations which experienced AI-enabled fraud were targeted more than once, suggesting a persistent and adapting threat rather than isolated incidents.

Key Figures and Entities

The data reveals that among the businesses that experienced fraud in the past year, 81 per cent reported encountering an AI-enabled attack. Myriam Duguay, Partner and National Leader of Forensic Investigation, Integrity and Dispute Services at KPMG in Canada, noted that these technologies are changing the ground rules of corporate security. She emphasized that the attacks are not only increasing in volume but in sophistication, leaving many businesses vulnerable.

Legal and Financial Mechanisms

According to the survey, the most prevalent vectors for these attacks were AI-generated phishing emails and chats, which affected 60 per cent of respondents. Other mechanisms included deepfake documents (39 per cent) and executive impersonation calls utilizing voice-cloning technology (24 per cent). Despite the financial hit—which saw 72 per cent of firms lose between one and five per cent of profits—only 26 per cent of surveyed leaders reported having a formal, comprehensive, and tested incident response plan specifically for AI-enabled threats.

International Implications and Policy Response

The gap between the rising risk of AI fraud and corporate preparedness points to broader systemic issues in cybersecurity governance. With 94 per cent of business leaders expressing concern about AI-powered attacks in the coming year, the findings suggest an urgent need for updated regulatory frameworks and internal controls. The reputational fallout from these scams, which can shatter customer confidence and damage brand integrity, adds a layer of long-term risk beyond immediate financial loss.

Sources

This report is based on a KPMG Canada survey of 251 Canadian business leaders conducted in 2024, regarding fraud and preparedness within their organizations.