Rising First-Party Fraud and 'Scam Fatigue' Plague Canadians, Data Shows
New data from a major credit bureau reveals a troubling surge in first-party fraud across Canada, climbing 32 per cent between late 2024 and the end of 2025. This financial shift is paralleled by a psychological toll on the population, where a significant portion of citizens report feeling exhausted and desensitized by the relentless volume of scam attempts.
Background and Context
According to the Market Pulse Fraud Trends and Insights report released by Equifax Canada, first-party fraud—where individuals use their own identity to intentionally misrepresent information—rose from 0.25 per cent to 0.33 per cent in the final quarter of 2025. This type of fraud differs from identity theft, as it involves the legitimate account holder manipulating details for gain, often making it harder for traditional security systems to detect.
The data suggests that as fraud detection evolves, so do the methods of deception. A substantial 83 per cent of Canadians surveyed expressed concern that technology is now capable of creating convincing fake legal documents, including pay stubs and insurance claims. The sophistication of these tools is blurring the line between authentic and fraudulent documentation, complicating verification processes for financial institutions.
Key Figures and Entities
The findings are drawn from a survey of 1,570 Canadians conducted in early 2026. Carl Davies, Head of Fraud & Identity at Equifax Canada, noted that the constant exposure to scams has led to a state of desensitization among the public. "Fraud seems to have become a constant presence in Canadians’ lives," Davies said. "People are exposed to scams so frequently that many are becoming desensitized, yet the risks remain very real."
The survey highlights that while 28 per cent of respondents view fraud attempts as a manageable annoyance, a growing segment is experiencing negative mental health impacts. Sixteen per cent reported feeling "anxious and tired" when trying to discern real messages from fake ones, while 5 per cent described themselves as "completely burnt out." Julie Kuzmic, Head of Consumer Advocacy and Compliance at Equifax Canada, emphasized that this is a systemic issue, stating that citizens view fraud as a "broader societal challenge" requiring more than just individual vigilance.
Legal and Financial Mechanisms
The economic impact of this fraud landscape is multifaceted. Beyond direct financial losses, fraud is perceived to be driving up costs for honest consumers. Nearly half of those surveyed are concerned that fraudulent activity in the auto insurance sector is contributing to higher premiums. This aligns with concerns regarding digital payment scams and investment fraud, which 59 per cent and 46 per cent of respondents respectively identified as significant worries.
Vulnerability is not confined to a single location. Sixty per cent of Canadians feel most at risk in online environments, while one-third feel vulnerable using public Wi-Fi. Despite high levels of awareness—67 per cent worry about identity theft and 64 per cent about phishing—risky behaviors persist. Nearly 40 per cent of respondents admitted to accidentally clicking on fraudulent links via email or text, indicating a gap between concern and defensive action.
International Implications and Policy Response
The sentiment among Canadians indicates a belief that current safeguards are insufficient. There is overwhelming support for a multi-stakeholder approach to financial crime prevention. Eighty-eight per cent of those surveyed agreed that the public and private sectors must collaborate to combat fraud, while 80 per cent called for stricter penalties for scammers.
Furthermore, 62 per cent of respondents believe that everyday scams act as a funding mechanism for more serious criminal activity, linking nuisance-level fraud to broader organized crime. To address these gaps, citizens are looking to institutions for stronger protections. Sixty-eight per cent stated banks should implement stronger security measures, and 63 per cent want governments and companies to deploy more sophisticated fraud detection solutions.
Sources
This report draws on the Equifax Canada Market Pulse Fraud Trends and Insights report and the Equifax Canada Fraud Survey conducted in January and February 2026.
