Strengthening Canada's fight against fraud: Insights from the Canadian Bankers Association

Financial fraud and scams are growing concerns for Canadians, with sophisticated tactics affecting both individuals and businesses.

Andrew Dickson is Director, Fraud Prevention Awareness and Education, at the Canadian Bankers Association (CBA). He and his team are uniting the financial ecosystem and driving initiatives to tackle payment fraud through education, technology and policy. A key part of this effort is the Canadian anti-scam alliance, of which Payments Canada is a member. The alliance aims to enhance cross-sector collaboration to combat financial crime.

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What is the CBA’s role in supporting banks in their efforts to protect Canadians from payment fraud and scams?
The CBA brings together experts from our member banks to tackle fraud and financial crime in specialist groups, driving initiatives to enhance cyber security, protect consumers and strengthen industry-wide fraud prevention practices. We prioritize a comprehensive approach to financial crimes, including the Canadian anti-scam alliance, targeted outcomes related to consumer and business education, operational support and supporting public policy objectives.

1. Supporting public policy objectives: Advocating for policy that protects consumers, the financial sector and allows for the sharing of information to combat financial crime
2. Operational support: Sector-wide operational security support through forums to identify best practices, strategies and mitigations
3. Consumer and business education: Crafting awareness messages and toolkits that arm consumers and businesses with tools to protect themselves against financial crime

Payments Canada is a member of the Canadian anti-scam alliance, which is organized by the CBA. Can you tell us more about this initiative?
Last year, the CBA convened a panel of 71 experts from 40 organizations to explore the creation of a unified approach to fight scams in Canada, resulting in the creation of a Canadian anti-scam alliance. To date, more than 45 different organizations and some 200 subject matter experts are actively in the alliance, with involvement from the financial, telecom, public, law enforcement and digital platform/technology sectors.

The anti-scam alliance aims to drive outcomes across four priority areas in 2025:

1. Enhancing cross-sector data and intelligence sharing: Defining data sharing use cases that are permissible, strategic and effective in preventing future scams while respecting all legal and privacy requirements.
2. Strengthening Canada’s anti-scam technology and security capabilities: Identifying key tools with privacy-preserving capabilities that allow ecosystem participants to collaborate on scam identification, prevention and mitigation.
3. Digital platform engagement: Coordinating with participants to identify best practices and tactical measures to respond to and prevent scams that originate on digital platforms, including spoofed websites and fraudulent secondary market listings.
4. Public education and awareness: Launch a nationwide campaign to improve awareness, prevention and reporting of scams, providing Canadians with the knowledge and tools they need to stay a step ahead of scammers.

How are banks adapting to address the ever-growing and evolving challenge of fraud? What role do technological advancements play in these efforts?
Banks have adopted multiple advanced technologies to combat the growing and evolving challenge of fraud, including artificial intelligence (AI) and machine learning, biometric authentication, data analytics and real-time transaction monitoring.

AI and machine learning technologies analyze data to identify patterns and anomalies that may indicate fraudulent activity, with machine learning models continuously improving their accuracy by learning from historical data, enabling real-time monitoring and immediate responses to suspicious transactions.

Biometric authentication includes fingerprint scanning and facial recognition. By layering these additional physical attributes on top of transaction monitoring technologies, banks are better positioned to reduce instances of identity theft and account takeovers.

Predictive data analytics tools combined with big data capabilities help banks understand customer behaviour patterns and predict potentially fraudulent activities before they occur. This proactive approach minimizes losses associated with fraud by triggering alerts for further investigation into suspicious transactions or accounts.

Real-time transaction monitoring systems enable banks to instantly identify and mitigate suspicious behaviours. These systems are crucial for detecting and preventing fraud as they happen, rather than after the fact.

What are some of the most common types of payment fraud currently affecting Canadian consumers and businesses? What are some things we can do as individuals to stay more vigilant, and what should we do if we suspect payment fraud?
Identity fraud, phishing and spear phishing were some of the most common types of payment-related fraud reported to the Canadian Anti-Fraud Centre (CAFC) in 2024. One way to help protect yourself is to learn what your bank will NEVER ask. And the CBA’s scam prevention toolkits offer tips to help protect against a wide range of scams. Here are some additional tips:

• Verify before you act: If you receive a suspicious call or message, contact your bank directly using the number on your card, in the official app or on their official website. Never use a link in the message
• Enable multi-factor authentication (MFA): Adding an extra layer of security to your banking and email accounts can prevent unauthorized access.
• Monitor your accounts: Regularly review your bank and credit card statements for any unauthorized transactions.
• Stay informed: Keep up with the latest scam trends by following fraud prevention alerts from the CAFC, signing up for the CBA’s free fraud prevention newsletter, reading alerts from your bank.
• Never share personal information: Banks and government agencies will never ask for your Social Insurance Number, passwords, or full account details over the phone, through text or by email.
• Trust your instincts: If something feels off, take a step back and double-check the source before responding.

Finally, if you suspect fraud, contact your bank immediately and refer to our Guide for how to report scams. Doing so helps keep you safe, protects others, and makes it harder for scammers to succeed.

About the Canadian Bankers Association

The Canadian Bankers Association is the voice of more than 60 domestic and foreign banks that help drive Canada’s economic growth and prosperity. The CBA advocates for public policies that contribute to a sound, thriving banking system to ensure Canadians can succeed in their financial goals. www.cba.ca.