In today’s digital-first economy, rising fraud in Canada is threatening trust like never before. Right now, fraudsters are exploiting this. Picture this: your team has just onboarded a promising new client. Everything checks out – until weeks later, you discover that client never existed. The identity was synthetic. The data was fake. The damage? Real and expensive. This isn’t fiction. It’s the new reality facing Canadian businesses, where fraud risk is exploding as digital interactions increase. According to Statistics Canada, reported fraud cases jumped 12% in 2023 alone. Over the past decade, they’ve nearly doubled.

The cost?

In 2024, Canadians reported losing $638 million to fraud (Canadian Anti‑Fraud Centre, 2024). However, this figure represents only 5–10% of reported cases, meaning the true cost may exceed $6.38 billion (Canadian Anti‑Fraud Centre, 2024).

For businesses, the implications go far beyond direct losses. The Association of Certified Fraud Examiners (2024) reports that large enterprises lose an average of more than $1.5 million per fraud incident and typically forfeit around 5% of annual revenue to fraud. Synthetic identity fraud – the fastest-growing type of financial crime – alone costs some institutions billions annually as fraudsters blend real and fake information to bypass verification (Federal Reserve, 2019).

This climate of fear presents both a risk and an opportunity. Organizations that prove they have robust, AI‑powered fraud mitigation technology can position themselves as safe, trustworthy partners – winning over customers who are actively seeking security and transparency. Yet over 40% of North American merchants still rely on manual, outdated fraud prevention processes (LexisNexis Risk Solutions, 2023). Each dollar lost to fraud costs merchants about $4.60 in total impact when factoring in chargebacks, lost customers, and reputational damage (LexisNexis Risk Solutions, 2023).

Executives who invest in modern fraud‑mitigation technology are not just protecting revenue – they are differentiating their brand, retaining customers, and gaining a competitive edge in a market where trust is scarce but invaluable.

The Hidden Cost of Every Fraud Attempt

Every fraud attempt, whether successful or not, leaves a mark. It forces your team to rerun checks, reroute approvals, and rebuild customer confidence. Worse, it chips away at the one thing you can’t afford to lose: consumer trust. Behavioral science calls this the “trust deficit effect.” Once trust is breached, it takes significantly more effort and time to restore than to build. And consumers don’t wait. If your process feels risky, complex, or outdated, they’ll walk – often straight into the arms of your competitors. Rebuilding that trust starts with transparency. Proactively informing affected users, owning the incident, and clearly outlining what changes you’ve made can help restore credibility. Reinforce safety with trust signals – like visible fraud controls, liveness detection, and real-time support – and simplify the user experience. When customers feel protected and understood, trust can be repaired over time.

Why Traditional Tools Are Failing

So why is this happening? Because fraud has evolved and many defenses haven’t. Yesterday’s protection tools; passwords, security questions, even two-factor authentication – were designed for a different era. Today’s attacks are powered by AI, deepfakes, and voice cloning. Among the most dangerous new threats:

• Synthetic identity fraud, where real and fake data are blended to create “new” individuals who can pass traditional KYC checks (McKinsey).
• Phishing scams enhanced by generative AI, making emails indistinguishable from legitimate communication.
• Deepfakes and injected media, used to impersonate executives or bypass biometric verification.
• Voice-based social engineering, where cloned voices manipulate customer service agents or verification systems.

These aren’t anomalies – they’re trends. And they’re costing Canadian businesses time, money, and reputation.

Rethinking the Response: From Reactive to Predictive

To stay ahead, organizations must shift from detection to prevention – and that starts with smarter systems. At EIS, we’ve designed our SmarterProcessing™ platform to meet today’s most pressing fraud challenges. Built on 40+ years of experience helping Canadian enterprises with onboarding, verification, and compliance, it integrates best-in-class tools that work together – seamlessly and intelligently.

Jumio uses AI to verify ID documents, detect liveness, and cross-reference user data with over 500+ global sources. It performs biometric checks in real time, helping catch suspicious behavior the moment it occurs. (Jumio 2024 Study) Clearspeed analyzes voice responses to detect risk signals across 60+ languages – in seconds. Originally developed for U.S. military screening, it reduces case review time by 95% and shrinks investigation loads by 74% without collecting invasive biometric data. (Clearspeed) Together, these tools give Canadian businesses:

Fraud Is Evolving. So Must We.

The scariest part? Fraudsters are innovating faster than most companies are reacting.

But that also means there’s an opportunity. Investing in modern fraud mitigation isn’t just a cost- it’s a competitive advantage. It tells your clients that you value their security. It signals to partners that you take compliance seriously. And it shows leadership that you’re future-ready. In a world where trust is constantly under attack, your protection can become your brand. Let’s stay ahead – together.

Association of Certified Fraud Examiners. (2024). Report to the Nations: 2024 Global Study on Occupational Fraud and Abuse.

Canadian Anti-Fraud Centre. (2024). Fraud statistics.

Clearspeed. (n.d.). Technology and resources.

Federal Reserve. (2019, July). Synthetic identity fraud in the U.S. payment system: A review of causes and contributing factors.

Forbes Technology Council. (2023, October 12). Voice cloning and cybersecurity. Forbes.

Gligorijevic, B., & Le Mens, G. (2021). Rebuilding trust in the digital age. Harvard Business Review.

Jumio. (2024). Online identity study.

Jumio. (n.d.). Biometric verification and liveness detection overview.

LexisNexis Risk Solutions. (2023). True Cost of Fraud™ Study: North America.

McKinsey & Company. (n.d.). Synthetic identity fraud: A growing risk.

Statistics Canada. (2023). Police-reported crime statistics in Canada.