Fraud: The Hidden Crime

The **Canadian Anti-Fraud Centre (CAFC) estimates that Canadians lost over $704 million** to scams and fraudulent activity in 2025. This staggering number is a reminder that fraud has devastating effects.

On top of that, the Nova Scotia RCMP is **warning residents about a rash of recent scams** in the Halifax area.

March is Fraud Prevention Month (**#FPM2026**) and so this month we’re taking a closer look at to recognize and report fraud.

Fraud is poorly understood, hard to detect and often unreported, making it less obvious than other crimes. Despite this, it can feel that scams are everywhere, and the financial and emotional impact on victims can be disastrous. The best way to fight fraud is understanding it, so we are working with Nova Scotia’s new Partners Against Fraud to bring this hidden crime into the light. Read on to learn how you can protect yourself and your loved ones.

The Rise of Fraud

Fraud is on the rise in Canada. More and more people are being targeted and losing money. Yet most incidents — an estimated 90–95%! — go unreported to the Canadian Anti-Fraud Centre (CAFC). In 2025, the CAFC received over 112,000 fraud reports involving over $704 million in reported losses — an increase from $645 million in losses in 2024.

According to CAFC reporting, the scam types with the greatest impact on Canadians are investment fraud, relationship and romance fraud, identity fraud, phishing and recovery fraud.

Fraudsters are sophisticated criminals and use tools like advanced technology, social engineering, and artificial intelligence to deceive Canadians into sending money or sharing personal information. Fraudsters can act independently or as part of a larger criminal network.

Fraud and Technology

As new technology develops, scammers are quick to put it to work in their schemes. AI (artificial intelligence) tools are allowing scammers to create sophisticated looking text, image, video and audio content to deceive their targets. Check out our past blog post to learn more about AI and Scams.

Spoofing is another technological tactic used by scammers. Cyber criminals disguise malicious communication or activity as coming from a trusted source. They make their messages, websites, or phone calls look real by disguising email addresses, caller IDs and websites.

Cyber criminals can design messages or websites that look trustworthy by using the same graphics and logos that a trusted company uses. But there are usually signs that a message or website is spoofed, including extra or misplaced characters in email addresses or URLs, spelling or grammar mistakes, or urgent or threatening language. Get Cyber Safe Canada has more information on spoofing on their webpage.

Emotional Manipulation

Emotional manipulation is another tool that scammers use to deceive their victims. Check out our blog on recognizing a scam pitch for examples of how scammers manipulate their targets.

One of the best ways to protect yourself from manipulation is talking to a trusted friend or relative about new opportunities, investments and online friendships. If you’re being targeted by a scammer, it can be hard to see past manipulation. Talking things over with friends or family can make the signs of a scam more clear.

Tackling Fraud Together

The Canadian Anti-Fraud Centre estimates that less than 5% of the total number of fraud victims report their experiences to law enforcement agencies in Canada. By reporting a scam, you provide law enforcement with the information they need to stop fraudsters and prevent others from becoming victims.

Remember: fraud is a crime and fraud victims experience real harm. Reporting fraud, including suspected fraud and attempted fraud, is a way to take action and prevent further harm. You can report fraud to the Canadian Anti-Fraud Centre and to local law enforcement. This article from Competition Bureau Canada has helpful tips on how to report fraud. Remember to report fraud to your financial institutions, such as your bank and credit card company, to keep yourself safe.

Further Reading

• Canadian Anti-Fraud Centre: Fraud Prevention Month 2026
• Competition Bureau Canada: Fraud Prevention Month
• Report Cybercrime and Fraud | National Cybercrime and Fraud Reporting System
• Find and Report a Scam | Better Business Bureau