Canadian businesses lost an estimated CA$111 billion to fraud over the past year, according to TransUnion's latest Top Fraud Trends Report, with synthetic identity scams emerging as one of the fastest-growing and most costly forms of digital crime.
The report, based on a survey of 200 business leaders across industries, found that fraud-related losses rose 42% year over year, up from $78 billion in 2024, and representing roughly 7.2% of corporate revenues. Synthetic identity fraud alone now accounts for 26% of total losses, overtaking traditional forms of digital fraud such as account takeovers and third-party impersonation.
Scams and social engineering remain the leading cause of losses, making up 29% of cases, while brand spoofing continues to erode consumer trust. Sixty per cent (60%) of respondents said their customers were targeted by fraudulent emails impersonating their company, while nearly half experienced caller ID spoofing attempts.
Despite the rise in total financial losses, the overall rate of suspected digital fraud for transactions involving Canadian consumers fell to 4.2% in H1 2025, down from 5.4% a year earlier. The decline, according to TransUnion, reflects improved fraud detection technology, including greater use of behavioral biometrics, device reputation tools and identity verification systems.
While most industries saw decreases in fraudulent activity, certain sectors remain highly exposed. Online communities saw a 68% year-over-year increase in suspected digital fraud attempts, the largest among all sectors analyzed. The gambling sector followed, with a 16% rise.
In contrast, financial services and insurance recorded significant declines, at 40% and 27% respectively, aided by stronger authentication measures and regulatory compliance requirements.
For insurers and financial institutions, the findings suggest continued progress in detecting fraud earlier in the customer lifecycle, but also growing complexity as synthetic identities become more sophisticated. These hybrid identities, built from real and fabricated personal data, are increasingly difficult to detect and often bypass conventional identity verification systems.
TransUnion warned that vigilance remains key, even with better fraud controls in place. The firm said even small improvements in detection and prevention can materially reduce exposure, particularly as fraudsters continue adapting to evolving security technologies.
Industry analysts expect Canadian insurers and financial service providers to continue investing heavily in fraud analytics, data sharing, and digital identity management over the next year, as losses from synthetic identity scams increasingly affect underwriting, claims integrity, and consumer confidence.
