The federal government has unveiled new measures to combat financial scams and economic abuse, outlining what officials describe as Canada’s first-ever National Anti-Fraud Strategy. The initiative, announced by Finance Minister François-Philippe Champagne ahead of the Nov. 4 budget, aims to strengthen protections for consumers and modernize how financial institutions detect and respond to fraud.
Under the proposed amendments, banks will be required to develop explicit policies to detect and prevent fraud, and to seek clear consent before enabling digital transfer or payment features that could be exploited by criminals. Consumers would also be able to disable unwanted account functions or set transaction limits, allowing for greater control over potential exposure.
The government also intends to establish a new Financial Crimes Agency by spring 2026 to coordinate investigations into online fraud, organized financial crime, and money laundering, as well as to help recover illicit proceeds.
Another initiative under the strategy is the creation of a voluntary Code of Conduct for the Prevention of Economic Abuse, overseen by the Financial Consumer Agency of Canada. The code would set expectations for how banks identify and respond when one person exerts coercive control over another’s access to money or credit — an issue that disproportionately affects seniors and vulnerable individuals.
The announcement follows data from the Canadian Anti-Fraud Centre, which reported losses of more than $640 million in 2024 — nearly triple the total from 2020. Only a fraction of cases are believed to be reported. Officials say the new measures are meant to close gaps across banking, telecommunications, and technology sectors that fraudsters often exploit.
Public Safety Minister Gary Anandasangaree said the forthcoming Financial Crimes Agency will help “maintain confidence in our financial system” by uniting federal expertise to investigate complex schemes and recover stolen assets.
While the measures are directed primarily at financial institutions, potential ripple effects for insurers and brokers, particularly in fraud prevention and claims verification, could be expected.
Identity theft and social-engineering scams frequently lead to false claims or misdirected payments within the insurance ecosystem. Stronger cross-sector collaboration — especially data-sharing between banks, insurers, and regulators — could improve early detection of suspicious activity.
In addition, the government’s focus on consumer education and consent-based account controls could help curb the personal information breaches that often fuel both banking and insurance fraud. Cybersecurity experts interviewed by Insurance Business over the past year have consistently emphasized that human error remains the weakest link in most cyber incidents, with social engineering among the most common attack vectors. Improving public awareness, they note, could significantly reduce losses — and potentially contribute to lower premiums over time.
A national anti-fraud framework could also support broader adoption of secure digital-identity and transaction-verification standards, areas many insurers are already exploring.
Budget 2025 is expected to detail how the new Financial Crimes Agency will be funded and structured. The government has also indicated that further policy work will examine fraud prevention in other sectors — including technology and telecommunications — to ensure a more coordinated national approach.
