Ottawa, Ontario — Identity theft and fake credit applications have caused Canadian auto fraud to surge 54 percent compared to a year ago, according to a recent report from Equifax Canada.
Ontario is the province that has experienced the most significant increase in auto fraud, with rates doubling since Q2 2023, said Equifax.
First-party fraud, wherein an individual misrepresents their finances, remains the most common type of automotive fraud, though the proportion of identity theft in credit card applications continues to grow, with 48.3 percent of all fraud applications flagged as identity fraud in Q2 2024.
“While the proportion of true identity fraud remained the same at 39.4 percent, there has been a rise in synthetic identity fraud, where criminals combine real and fake data to create new identities,” explained the company in a press release. “The incidence of synthetic identity fraud rose from 2.8 percent in Q2 2023 to eight percent in Q2 2024.”
“The rise in true identity fraud along with synthetic identity fraud underscores the need for enhanced fraud detection across digital platforms where these crimes are increasingly being perpetrated,” said Carl Davies, head of fraud and identity at Equifax Canada. “The increase in digital transactions has made it easier for fraudsters to exploit weaknesses in current fraud prevention measures.”
Equifax suggests that businesses and consumers employ ID theft protection tools that can detect fraud early through timely alerts and credit report changes.
“Effective fraud prevention includes verifying identities, cross-checking financial documents, and staying informed about regional fraud trends—key measures that can help mitigate the growing threat of fraud for Canadian consumers and businesses alike,” advised the agency.
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