Fraud remains a significant concern for Canadian consumers and businesses in 2025, spanning auto theft, AI-generated forgeries and other emerging threats.
New data from Aviva Canada has highlighted a sharp increase in fraudulent activities. In 2024, the insurer detected 46% more claim fraud cases and saw a 76% rise in fraud investigations. Auto-related incidents accounted for 67% of all investigations. The use of artificial intelligence to manipulate information is also expected to grow in 2025.
During the country’s 21st annual Fraud Prevention Month, Canada focused on tackling impersonation scams, which it said is one of the fastest-growing scam categories in the country.
“Fraudsters are becoming more sophisticated, making it harder for the average Canadian to detect fraud,” said Jamie Lee, head of financial crime and fraud at Aviva Canada. “Insurance fraud costs Canadians $1 billion annually in added premiums. Staying informed on emerging fraud tactics is key to protecting against these risks.”
Vehicle theft remains a growing concern, with investigations increasing by 58% in the latter half of 2024. Stolen cars are often shipped overseas or resold in Canada with altered VIN numbers and fraudulent documentation. With tighter border controls, more stolen vehicles may stay in Canada, increasing the risk of unsuspecting buyers purchasing stolen cars from online marketplaces.
Staged auto accidents are also on the rise, with a 47% increase in cases detected in the last quarter of 2024. These scams, often linked to organized crime, involve falsified crash reports, exaggerated injuries, and fraudulent repair claims.
The use of AI to manipulate or create fake documents is becoming more prevalent. Fraudsters are leveraging this technology to stage fraudulent claims or inflate legitimate ones, particularly in property and contents insurance claims, using fabricated invoices.
Unlicensed individuals posing as insurance brokers are another growing concern. These so-called "ghost brokers" sell fake policies or manipulate customer information to secure lower premiums. Consumers are encouraged to verify a broker’s licensing through provincial registries and confirm their insurance coverage directly with the insurer.
Policy misrepresentation is another issue, with some policyholders omitting or falsifying key details, such as their actual address, how a vehicle or property is used, or major renovations. These misrepresentations can result in higher premiums for honest customers.
“Fraud has financial, mental, and emotional consequences for Canadians,” Lee added. “It affects everyone by driving up insurance costs.”
