Digital fraud is escalating at an alarming rate in Canada, with businesses feeling its effects. TransUnion’s H1 2025 State of Omnichannel Fraud Update reveals startling statistics: between August and December 2024, 56% of Canadians were targeted by fraudsters, and 9% reported being victims.
This trend demands attention, especially within the insurance industry, which saw a 54% spike in suspected fraud attempts on transactions in 2024. Common fraud methods included phishing (43%), fake text messages (40%), scam phone calls (35%), and fraudulent third-party seller scams (19%).
For Canadian businesses, these findings highlight a crucial challenge: consumers are increasingly prioritizing personal data security when selecting companies to transact with online. TransUnion’s report reveals that 91% of Canadians deem data security essential, surpassing cost savings (25%) and even product quality (19%) in importance.
Patrick Boudreau, TransUnion Canada’s head of identity management and fraud solutions, emphasizes the need for vigilance, noting that many Canadians fail to take appropriate steps after falling victim to fraud. His insights underscore the significance of educating consumers and equipping businesses to protect personal data, whether through robust fraud prevention measures or transparent security protocols.
For insurers and other businesses, adapting to this heightened focus on data security is not just a regulatory necessity—it’s a competitive advantage. Businesses that proactively address fraud and foster consumer trust will be well-positioned to navigate this digital age of heightened fraud risks. Ultimately, embracing robust fraud prevention solutions isn’t just about shielding transactions; it’s about safeguarding relationships and ensuring sustainability.
By staying one step ahead of fraudsters and prioritizing data protection, Canadian companies can not only mitigate risks but also build confidence among their customers. The TransUnion report serves as both a wake-up call and a roadmap for businesses striving to thrive in a rapidly evolving digital landscape.
Original article courtesy of InsuranceBusinessMag.com
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