Equifax Canada

Economic Pressures has Fraud and Auto Theft on the Minds of Canadians

TORONTO, Feb. 27, 2024 (GLOBE NEWSWIRE) -- A new survey* by Equifax Canada sheds light on a public increasingly worried about the potential rise in fraudulent activity across industries. In addition, Equifax Canada data shows mortgage fraud and identity fraud continuing to escalate across the country as economic pressure continue.

Key Overall Findings:

• Economy Fuels Fears: Over 76 per cent of Canadians surveyed believe financial hardships may increase the likelihood of people committing fraud and theft, suggesting economic anxieties may contribute to growing auto theft and identity fraud concerns.
  
• Auto Industry Alarm: Over 74 per cent of Canadians surveyed believe insurance fraud impacts their auto insurance payments, highlighting the financial burden of this growing crime. Over 56 per cent believe that keyless entry and ignition systems have increased the risk of auto theft, with 48 per cent knowing someone who has had their vehicle stolen.
  

Equifax Data: Tracking Identity Fraud Across All Sectors
While overall fraud rates have seen a slight decline compared to the peak levels of 2022, the prevalence of identity fraud has increased. In the fourth quarter of 2023, identity fraud accounted for a staggering 75.21 per cent of all fraudulent applications across all sectors, marking a significant increase from 64.7 per cent in the previous year. This rise in identity fraud poses a substantial risk to consumers and financial institutions alike, as fraudsters employ increasingly sophisticated tactics to exploit the system. The biggest proportion of identity fraud was seen in the banking sector, where 73.5 per cent of all fraudulent credit card applications and 89.3 per cent of all deposit frauds in Q4 2023 were found to be because of identity fraud.

"Identity fraud is no longer confined to traditional financial products; it has permeated into many industries including the auto industry, posing significant challenges for lenders and consumers," said Carl Davies, Head of Fraud & Identity for Equifax Canada. "The rise in identity fraud rates illustrates the urgent need for enhanced security measures and greater vigilance across all sectors."

Auto Industry
The Equifax application fraud data also suggests nearly 80 per cent of auto fraud cases involve first-party fraud, where individuals falsify income or financial statements when applying for a car loan. New data indicates that the proportion of identity fraud in auto fraud applications has doubled since 2019. Secured lending institutions are especially vulnerable to these attacks, as fraudsters manipulate identity information to secure loans and acquire vehicles through deceptive means.