Canada experiences nearly a 40% rise in suspected digital fraud attempts

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Canada suffers near 40% increase in suspected digital fraud attempts



“Digital fraud attempts in Canada have surged by nearly 40 per cent in 2023, marking one of the highest increases among 19 countries, according to a recent TransUnion study. With five per cent of all digital transactions in Canada being suspected as fraudulent, it’s evident that Canadians are increasingly becoming targets of cybercriminals.

The Retail Sector: A Hotbed for Fraud
The analysis revealed that the retail sector had the highest rate of suspected digital fraud, with 8.4 per cent of transactions being flagged as potentially fraudulent. Additionally, online communities like chat forums and online dating had a 6.2 per cent fraud rate, while video gaming transactions had a 4.6 per cent risk of fraud.

Various Fraud Schemes Uncovered
From phishing scams to third-party seller fraud, Canadians reported encountering a diverse range of fraudulent activities. Phishing, where fraudulent links are distributed through emails and other communication channels, was reported by half of the respondents. On the other hand, 22 per cent reported falling victim to third-party seller scams, where fake product listings are posted on legitimate retail websites.

The Impact of the Pandemic on Digital Fraud
The rise in digital transactions amid the pandemic provided fraudsters with more opportunities to exploit unsuspecting Canadians. As a result, suspected digital fraud attempts skyrocketed by 202 per cent from 2019 to 2023. This new reality has forced Canadians to remain vigilant and cautious in sharing personal information online.

Taking Precautions: A Priority for Canadians
The survey by TransUnion also highlighted that Canadians are increasingly prioritizing digital security and fraud prevention. Over 70 per cent of respondents stated that they would avoid returning to a website if they had concerns about fraud. Moreover, 42 per cent have abandoned online shopping carts due to security apprehensions.

The Newcomer Perspective
Interestingly, a poll by The Bank of Nova Scotia revealed that newcomers to Canada are more proactive in safeguarding themselves against financial fraud. However, despite their vigilance, 38 per cent of newcomers reported falling for fraudulent schemes, emphasizing the need for continuous diligence.

In Conclusion
In today’s digital age, the prevalence of fraud poses a significant threat to Canadians’ financial security. It is crucial for individuals to remain hypervigilant, double-check information, and be cautious when interacting online. By staying informed and taking necessary precautions, Canadians can better protect themselves from falling victim to digital fraud.”



Reference

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