Credit card fraud is on the rise in Canada even as overall application fraud rates fall to their lowest level since the third quarter of 2022, according to a new report from Equifax Canada.
The company’s Market Pulse Fraud Trends and Insights Report for the first half of 2025 shows application fraud dropped to 0.56 per cent in the second quarter, down from 0.70 per cent the previous quarter and 0.57 per cent a year earlier. The decline has been attributed to softening consumer demand for credit products, tighter lending standards, and a cooling economy. However, Equifax warns that a sharp increase in credit card fraud may be obscured by these broader trends.
Carl Davies
“Fraudsters are no longer targeting specific consumer groups it seems, rather indiscriminately striking across the credit spectrum as of late,” said Carl Davies, Head of Fraud & Identity at Equifax Canada. “The surge in credit card fraud is concerning and requires vigilance from lenders, policymakers and consumers alike.”
According to the report, credit card fraud rose to 0.75 per cent in the second quarter, up from 0.44 per cent a year ago, despite a 1.4 per cent drop in application volumes. Third-party fraud now accounts for 83 per cent of all fraudulent credit card activity, with true-identity fraud making up 78 per cent of those cases.
Equifax said fraudsters are increasingly targeting middle-aged Canadians, with the largest increases reported in Ontario and Atlantic Canada—regions where delinquency rates have exceeded pre-pandemic levels.
Cherolle Prince
“Credit cards remain a central point of vulnerability — it’s one area where fraudsters adapt rapidly, exploiting both gaps in verification and economic uncertainty among consumers,” said Cherolle Prince, Director, Fraud Consulting at Equifax Canada. “Even as other product lines show easing, the rise in credit card fraud underscores the urgency of investing in stronger identity verification, data sharing and cross-industry collaboration.”
First-party fraud, which often involves misrepresentation of financial circumstances, was seven per cent higher compared to the same period last year. While credit card fraud increased, third-party fraud outside of that sector saw declines both quarterly and annually, with identity theft remaining the primary method used.
Auto fraud dropped to 0.23 per cent from 0.26 per cent a year earlier, while banking and deposit fraud fell from 1.09 per cent to 0.70 per cent. Among non-mortgage holders, which includes prospective first-time home buyers, fraud rates stood at 0.22 per cent compared to 0.16 per cent among mortgage holders.
Mortgage fraud also declined, falling to 0.19 per cent in the second quarter of 2025 from 0.29 per cent the year before. However, income and employment misrepresentation—often involving falsified documents—continues to drive more than 75 per cent of mortgage fraud cases. In the auto sector, such fraud accounts for nearly 30 per cent of cases.
“As we look ahead, we typically see seasonal spikes in fraud toward the end of the year. Knowing this, we encourage Canadians to visit the Fraud and Identity Theft education hub on the Equifax website to learn more about the actions they can take to help protect themselves and their families from identity theft and fraud,” said Davies.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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