Canada’s New National Anti-Fraud Strategy: Raising the Bar in Fraud Prevention
- Fraud losses in Canada reached $643 million in 2024
- New laws require banks to improve fraud prevention and consumer protections
- Financial Crimes Agency planned for 2026 to fight economic abuse and scams
While check fraud makes the headlines in the US, we are not the only country that is heavily affected. In a recent announcement, the Department of Finance Canada cast a spotlight on the alarming escalation in financial fraud across the country. Losses attributed to fraud reached a staggering $643 million in 2024, nearly tripling since 2020, according to the Canadian Anti-Fraud Centre. The true cost could be far higher, as only an estimated 5–10% of incidents are reported.
These dramatic statistics highlight why a new, coordinated approach is urgently needed to counter increasingly sophisticated scammers and protect consumers from classic and emerging threats—including check fraud.
Legislative Changes Target Banks & Consumer Protections
Budget 2025 unveils a comprehensive National Anti-Fraud Strategy with legislative amendments that directly address the roles and responsibilities of Canadian banks. These proposed reforms will require banks to:
- Adopt pro-active systems to identify and reduce consumer-focused fraud, including check fraud.
- Obtain explicit customer consent before enabling features that could increase risk.
- Offer consumers the ability to set transaction limits and disable unused or unsafe account features.
- Regularly collect and report fraud data to the Financial Consumer Agency of Canada for better oversight and industry accountability.
The intent is to empower personal account holders and clamp down on unchecked features that fraudsters commonly exploit, giving consumers more control and transparency in a rapidly evolving threat landscape.
Protecting Vulnerable Canadians & Recognizing Economic Abuse
A special focus is placed on protecting vulnerable groups—such as seniors and newcomers—who are often prime targets for financial scams. Furthermore, the strategy goes beyond traditional financial fraud by recognizing economic abuse as a form of gender-based violence. The government is working with banks and stakeholders to draft a “Code of Conduct for the Prevention of Economic Abuse,” reinforcing banks’ frontline role in detecting and assisting victims.
Towards a Dedicated Financial Crimes Agency
Looking ahead, the Canadian government aims to establish a specialized Financial Crimes Agency, with enabling legislation expected by Spring 2026. This agency will bring together expertise across law enforcement and regulatory bodies to investigate complex crimes, from money laundering to large-scale online fraud.
Canada’s measured, multi-pronged effort—as detailed in the Department of Finance’s October 2025 overview—reflects a modern understanding that tackling fraud demands flexible tools, cross-sector collaboration, and a strong survivor-centered approach.
What's Missing?
While policies and efforts to educate consumers are steps in the right direction, it's ultimately financial institutions that can make the biggest impact by effectively detecting fraud -- including checks. These technologies enable financial institutions to protect themselves and their customers from fraud losses.
However, what's notably absent is guidance on how Canadian financial institutions could learn from the U.S. banking sector by implementing AI-driven solutions for on-us and deposit fraud detection.