Study reveals steady fraud rates, but newcomers and young Canadians are more at risk
Payment fraud remains a persistent concern for Canadians, with 13% reporting incidents over a six-month span in 2025 and the problem is evolving in unexpected ways.
While overall rates have held steady since 2021, the mix of fraud types has shifted according to new research from Payments Canada.
Cash led all payment methods for frequency of fraud experiences — nearly three times higher than credit cards — averaging 22.4 incidents over six months. Prepaid cards followed at 10.5 times, with credit and debit cards tied at 8.8 times.
However, 72% of Canadians still consider cash the safest way to pay.
“In particular, our research reveals that Canadians encountered the highest level of fraud when using cash compared to any other payment type,” says research director Jon Purther. Tactics like counterfeiting, pickpocketing, and cash-based scams — including romance and impersonation schemes — are becoming more sophisticated.”
The study found that newcomers are especially vulnerable, facing payment fraud at nearly double the national rate (25% versus 13%). Younger Canadians are also heavily affected, making up 58% of recent fraud victims.
For those defrauded, most financial losses were under $500, and 65% of victims were fully reimbursed by their bank or card provider. More than a third (37%) lost no money but had personal financial data stolen, highlighting the broader costs beyond dollars.
Scam fears are also shaping consumer behaviour with more than half saying that fraud concerns influence how they shop and pay, with many verifying e-commerce sites or preferring local, in-person deals.
Alarmingly, one in four Canadians risk missing bill payments because they ignore communications they suspect might be fraudulent.
Password habits remain a weak spot with 19% of respondents reusing the same password across all accounts, and 6% have shared banking details via email or text.
“Payment fraud is a global challenge with constantly evolving fraudster tactics and Canada is no exception,” says Donna Kinoshita, chief payments officer at Payments Canada, adding that that Canada will be the first country to launch a centralized fraud system alongside its new Real-Time Rail payment network, set to be technically complete in the coming weeks.
