First-party fraud surges in Canada, says Equifax

Credit cards hardest hit

First-party credit card fraud nearly doubled year over year, rising from 0.08% in Q4 2024 to 0.15% in Q4 2025. Contradictory or mismatched data submitted by applicants became the dominant form of fraud in the category, increasing from 59% of first-party cases to 77% over the same period. Ontario reported the highest regional exposure, with fraud-related credit losses in the sector reaching as much as $123 million.

A similar pattern emerged in banking and deposits. Third-party fraud attempts in the sector declined from 0.45% to 0.32%, while first-party fraud rose from 0.51% to 0.68%. Cases involving falsified financial information jumped from 1.5% to 21% of first-party cases, while account abuse increased from 14% to 24%.

Davies said artificial intelligence tools are being deployed to counter the trend. “AI-based technology helps to detect falsified documents and identities,” he said. “As fraud tactics evolve, Equifax offers reliable AI-powered tools that can help lenders identify both third-party attacks and signs that an applicant may be misrepresenting their financial position.”

Mortgages, auto loans decline

Not all categories trended upward. Auto application fraud fell 19.4% year over year, while mortgage fraud declined 12.5%. However, consumers aged 26 to 45 accounted for the largest share of suspected fraudulent mortgage applications, while those aged 35 and under represented the highest share of fraud-related credit losses in auto delinquency balances.

The Equifax data arrives as Ottawa moves to address fraud at the federal level. In 2025, the Canadian Anti-Fraud Centre reported that Canadians lost over $704 million to fraud, with total reported losses since 2022 now surpassing $2.4 billion, and experts estimate only 5% to 10% of scams are ever reported.