1. Equifax Canada reports a rise in credit card fraud in H1 2025. 2. Overall application fraud rates drop to 0.56%, the lowest since Q3 2022. 3. Credit card fraud increases to 0.75%, higher than last year's 0.44%. 4. Middle-aged Canadians are increasingly targeted by indiscriminate fraudsters. 5. Urgent need for improved identity verification and data sharing to combat fraud.
The rise in credit card fraud indicates a growing demand for Equifax's fraud prevention services, likely boosting revenues. Historical data shows rising fraud correlates with increased security service uptake.
This report sheds light on significant trends impacting Equifax's core business. The urgency for enhanced fraud prevention solutions aligns with their strategic focus.
Potential increased demand for Equifax's services will manifest quickly as fraud rates rise, impacting revenues in subsequent quarters.
- Identity fraud fuels sharp rise in credit card cases -
- Equifax Canada Market Pulse Fraud Trends and Insights Report -
TORONTO, Oct. 01, 2025 (GLOBE NEWSWIRE) -- Equifax Canada's Market Pulse Fraud Trends and Insights Report for the first half of 2025 reveals a sharp rise in credit card fraud, even as overall application fraud rates across Canada have fallen to their lowest point since Q3 2022.
Nationally, application fraud rates dropped to 0.56 per cent in the second quarter of 2025, down from 0.70 per cent in the previous quarter and 0.57 per cent a year ago. This broad-based decline reflects easing consumer demand for credit products, stricter lending standards, and a cooling Canadian economy. However, the decline may also be masking a troubling trend as credit card fraud diverged sharply in Q2, with fraud rates rising to 0.75 per cent compared to 0.44 per cent a year earlier, despite a 1.4 per cent drop in application volumes.
"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."
Credit card fraud surges
Third-party fraud now drives 83 per cent of all fraudulent activity in the credit card sector, with true-identity fraud accounting for 78 per cent of those cases. The data indicates that fraudsters are increasingly targeting middle-aged Canadians, with the sharpest increases seen in Ontario and Atlantic Canada, regions where delinquency rates have risen above pre-pandemic levels.
"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," added 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."
Persistent fraud threats
First-party fraud, often linked to misrepresentation of financial circumstances, is seven per cent higher than a year ago. Outside of the credit card sector, third-party fraud declined both quarterly and annually, with identity theft continuing to drive most of the fraudulent activity.
Auto fraud declined to 0.23 per cent from 0.26 per cent a year ago, while banking and deposits fraud dropped from 1.09 per cent to 0.70 per cent over the same period. Fraud among non-mortgage holders (a group that includes soon-to-be first-time buyers), stood at 0.22 per cent, compared to 0.16 per cent for mortgage holders, indicating that renters and first time home buyers need to take extra caution.
Falsified documents on the rise
While mortgage fraud fell to 0.19 per cent in Q2 2025, down from 0.29 per cent a year earlier, misrepresentation of financial circumstances, often in the form of falsified documents, continues to be a major source of fraud. This is particularly prevalent in mortgage fraud, where forged income and employment documents drove over 75 per cent of fraud cases. Income and employment fraud is also a major concern in the auto sector, where it makes up close to 30 per cent of fraud 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," concludes Davies.
About Equifax
At Equifax (NYSE:EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 15,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.ca.
Contact:
Andrew Findlater
SELECT Public Relations
afindlater@selectpr.ca
(647) 444-1197
Angie Andich
Equifax Canada Media Relations
MediaRelationsCanada@equifax.com
