Equifax Canada: Economic Pressures has Fraud and Auto Theft on the Minds of Canadians
27 Febrero 2024 - 7:06AM
A new survey* by Equifax Canada sheds light on a public
increasingly worried about the potential rise in fraudulent
activity across industries. In addition, Equifax Canada data shows
mortgage fraud and identity fraud continuing to escalate across the
country as economic pressure continue.
Key Overall Findings:
- Economy Fuels Fears: Over 76
per cent of Canadians surveyed believe financial
hardships may increase the likelihood of people committing fraud
and theft, suggesting economic anxieties may contribute to growing
auto theft and identity fraud concerns.
- Auto Industry Alarm: Over 74
per cent of Canadians surveyed believe insurance
fraud impacts their auto insurance payments, highlighting the
financial burden of this growing crime. Over 56 per
cent believe that keyless entry and ignition systems
have increased the risk of auto theft, with 48 per
cent knowing someone who has had their vehicle
stolen.
Equifax Data: Tracking Identity Fraud Across All
SectorsWhile overall fraud rates have seen a slight
decline compared to the peak levels of 2022, the prevalence of
identity fraud has increased. In the fourth quarter of 2023,
identity fraud accounted for a staggering 75.21 per cent of all
fraudulent applications across all sectors, marking a significant
increase from 64.7 per cent in the previous year. This rise in
identity fraud poses a substantial risk to consumers and financial
institutions alike, as fraudsters employ increasingly sophisticated
tactics to exploit the system. The biggest proportion of identity
fraud was seen in the banking sector, where 73.5 per cent of all
fraudulent credit card applications and 89.3 per cent of all
deposit frauds in Q4 2023 were found to be because of identity
fraud.
"Identity fraud is no longer confined to traditional financial
products; it has permeated into many industries including the auto
industry, posing significant challenges for lenders and consumers,"
said Carl Davies, Head of Fraud & Identity for Equifax Canada.
"The rise in identity fraud rates illustrates the urgent need for
enhanced security measures and greater vigilance across all
sectors."
Auto Industry The Equifax application fraud
data also suggests nearly 80 per cent of auto fraud cases involve
first-party fraud, where individuals falsify income or financial
statements when applying for a car loan. New data indicates that
the proportion of identity fraud in auto fraud applications has
doubled since 2019. Secured lending institutions are especially
vulnerable to these attacks, as fraudsters manipulate identity
information to secure loans and acquire vehicles through deceptive
means.
In response to these fraud trends, Equifax Canada emphasizes the
importance of proactive fraud prevention measures and heightened
consumer awareness. "As fraudsters adapt and evolve their tactics,
it is imperative for consumers to remain vigilant and take
proactive steps to protect themselves," added Davies. "By staying
informed and adopting robust security practices, individuals and
businesses can help safeguard themselves." Davies suggests
businesses consider adopting a fraud prevention platform like
FraudIQ Manager to protect their business.
Mortgage WoesEquifax Canada quarterly data**
also shows fraud rates in mortgage applications continue to rise,
up by 9.9 per cent in Q4 compared to Q4 2022, with Ontario having
the highest mortgage fraud rate among all the provinces. Mortgage
fraud is most commonly seen in the form of first-party fraud, where
an individual provides false information to qualify for a mortgage.
“With consumers facing a difficult mortgage market and continued
economic headwinds, we may see an increase in mortgage fraud,”
cautioned Davies. “In our consumer survey, 64 per cent of
respondents agreed that people are more likely to commit fraud or
theft when they’re having a hard time making ends meet, such as
providing false information on a mortgage application.”
Julie Kuzmic, Equifax Canada’s Senior Compliance Officer,
Consumer Advocacy, encourages consumers to explore ID theft
protection products that can help detect fraud sooner by
alerting them to key changes on their credit reports and scores, as
well as reviewing tips to protect their information, including:
- Using strong and unique passwords
- Being cautious of suspicious calls and emails
- Carefully disposing of sensitive documents like bank statements
and credit card bills
- Being careful about sharing personal information and only
sharing personal information and photo identification with trusted
institutions
“Checking credit reports for suspicious activity offers a great
opportunity to spot potentially fraudulent accounts, which Equifax
can investigate at no charge,” Kuzmic explained. “You can request a
free copy of your Equifax credit report by phone, mail, in person,
and online.”
* Equifax surveyed 1,614 Canadians ages 18-65, Feb. 2-4. A
probability sample of the same size would yield a margin of error
of +/- 2.5 per cent, 19 times out of 20.
* *Equifax data pulled from Q4 2019 to Q4 2023
About EquifaxAt Equifax (NYSE: EFX), we believe
knowledge drives progress. As a global data, analytics, and
technology company, we play an essential role in the global economy
by helping financial institutions, companies, employers, and
government agencies make critical decisions with greater
confidence. Our unique blend of differentiated data, analytics, and
cloud technology drives insights to power decisions to move people
forward. Headquartered in Atlanta and supported by nearly 15,000
employees worldwide, Equifax operates or has investments in 24
countries in North America, Central and South America, Europe, and
the Asia Pacific region. For more information, visit
Equifax.ca.
Contact:Andrew FindlaterSELECT Public
Relationsafindlater@selectpr.ca(647) 444-1197
Angie AndichEquifax Canada Media
RelationsMediaRelationsCanada@equifax.com
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