A recent report from TransUnion sheds light on the growing concerns of digital fraud in Canada, with notable implications for the insurance industry.
The H1 2025 Update to the State of Omnichannel Fraud Report reveals that more than half, or 56%, of Canadians surveyed were targeted by fraudsters through email, online platforms, phone calls or text messages between August and December 2024.
Around 9% of those targeted reported being victims of fraud. These findings raise concerns for the insurance industry as digital fraud continues to pose risks to both consumers and businesses.
“Our research indicates that many Canadians don’t take the proper steps if they have fallen victim to Digital Fraud,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada.
According to the report, concerns about fraud influence Canadian consumers’ behavior when engaging with online companies, including insurers. The survey found that 91% of Canadians consider the security of their personal data important when choosing to transact online.
Forty-six percent (46%) of Canadians identified personal data security as the primary factor in selecting a company to do business with. This concern was prioritized over cost savings (25%) and product quality (19%). Meanwhile, 3.3% of suspected digital fraud attempts in Canada targeted insurance transactions in 2024, an increase of 54% from the previous year.
Phishing was the most common method of fraud, with 43% of those targeted reporting this tactic. According to the report, fraudsters often use phishing to gather sensitive personal information. Other common methods reported included smishing or fraudulent text messages at 40%, vishing or fraudulent phone calls at 35% and third-party seller scams on legitimate retail websites at 19%.
“Emails are widely used in Canadians’ personal and business lives, while many use their mobile phones for everything from work calls to ordering groceries and organizing their families’ lives,” Boudreau said. “Fraudsters view these channels as the most likely way that they’ll be able to trick people into sharing personal information, which is why all Canadians need to be vigilant about responding to messages of any kind on their digital platforms.”
The TransUnion report underscored the need for Canadians to remain vigilant while engaging with online platforms as cybercriminals come up with tactics to defraud their victims.
