Canadian Consumers Identify Online Data Security, Impersonation, Card & Identity Theft As Key Payment Fraud Concerns, Capco Survey Finds

Over a third of survey respondents targeted by payment fraudsters over previous two years

78% of respondents concerned about impact of ‘deep fake’ technology on voice biometrics and facial ID

TORONTO--(BUSINESS WIRE)--Nine in ten consumers (91%) polled in a new payment fraud survey of 1,000 Canadian adults conducted by global management and technology consultancy Capco, a Wipro company, fear their online data could be used to make impersonation easier or reveal answers to security questions.

Card or card data theft (45%), identity theft (45%) and account takeover (41%) are the fraud types that most worry respondents, the survey found. More than a third (36%) of survey respondents have been the target of attempted payment fraud over the previous two years, with 37% of these individuals noticing a purchase they did not make, 32% spotting a phishing exercise, and 20% suffering attempted card or card data theft.

Over three-quarters (78%) of respondents are concerned about the impact of ‘deep fake’ technology on voice biometrics and facial ID: 27% consider them ‘not entirely secure’, 6% feel these authentication methods are already ‘insecure’, while 45% worry they will come ‘under future threat’.

However, more than half of respondents (52%) say they had not been provided with or could not recall being offered any information or guidance by their financial institution about the ‘deep fake’ threat and how to reduce the risk. This percentage rises to 60% of those aged 55-65, compared to 48% of those aged 25-35.

While most respondents remain somewhat confident (52%) or very confident (33%) that their primary financial institution will protect them from payment fraud, Capco’s survey suggests the payments industry has an opportunity to strengthen AI-era fraud defenses and preserve trust as it prepares for a real-time payments environment.

The survey’s findings appear in Capco’s new Canada Payment Fraud report, which arrives as Canada prepares to introduce its Real-Time Rail (RTR), bringing instant account-to-account payments and as fraudsters increasingly exploit advanced technologies – including AI – to enhance the scale and sophistication of payment fraud.

The report also explores trends across five key types of fraud and offers recommended paths for financial institutions to counter emerging threats. These include new forms of multilayered defenses, improved coordination of internal teams, information sharing, detection gap analysis, and AI-enabled real-time detection tools.

Gaelan Woolham, Partner & Canada Head of Financial Crime, Risk, Regulation & Finance at Capco, said: “Payment fraud has become increasingly globalized, industrialized and technology-enabled, making it one of the most significant challenges facing Canadian consumers and the country’s payments ecosystem. As Canada prepares for the launch of the RTR, fraud prevention will remain a top strategic priority across the industry. To stay ahead of evolving fraud tactics, organizations must be clear on emerging threats, customer concerns, experiences and expectations – and be ready to leverage advanced technologies, enterprise data and AI capabilities to prevent and respond to fraud in real time.”

Other key findings from Capco’s Canada Payment Fraud survey include:

Security (60%) and advanced fraud protection (46%) are the most frequently cited ‘important factors’ [four selections permitted] when respondents are choosing a financial institution offering payment services. Other considerations include:

• Customer service quality and responsiveness (39%)
• Transaction speed and reliability (36%)
• Accessibility, e.g. 24/7 support (36%)
• Brand reputation (31%)
• Ease of user experience/convenience (29%).

In addition to card or card data theft, identity theft and account takeover, other fraud types that concern Canadian consumers are:

• Purchase they did not make (38%)
• Phishing (27%)
• Transfer payments they did not make (24%)
• Impersonation or social engineering (17%).

When it comes to balancing security and convenience, the largest percentage of respondents (40%) say security is their absolute priority.

• 31% say that while they put security first, they also want decent levels of convenience.
• 26% want to balance security and convenience.
• 4% put convenience first.

33% find complex passwords frustrating or inconvenient to use and 27% say the same about being sent security codes (e.g. multi-factor authentication).

• 23% find challenge/security questions frustrating or inconvenient.
• 17% find mobile/email notifications of account activity frustrating or inconvenient.

Harley Wonder, Managing Principal, Canada Financial Crime, Risk, Regulation & Finance at Capco, said: “The latest AI technologies are already showing their value when it comes to improving detection rates, identifying risk signals across operational, functional and data silos, and enabling accelerated, near real-time prevention. In addition to deploying AI, institutions should reappraise all components of their fraud prevention strategy from customer onboarding and education to collections and disputes. Customer education, for example, must become more actionable and be brought closer to the potentially insecure activity using mechanisms such as just-in-time messaging.”

Capco’s Canada Payment Fraud Survey report can be downloaded here.

About Capco
Capco, a Wipro company, is a global technology and management consultancy shaping change in the financial services and energy industries. For almost 30 years, we have been trusted to help our clients adapt, transform and create long-term value across capital markets, banking, payments, insurance, wealth and asset management, and the energy and utilities sectors. Our deep industry expertise, partnership mindset and award-winning Be Yourself At Work culture are amplified by our strengths in advisory, technology, data and AI innovation. We support our clients to establish clear priorities, connect vision to value, and deliver measurable impact when the stakes are highest. Expert-led, AI-infused, impact-focused – we do not just respond to change, we help shape it. To learn more, visit www.capco.com or follow us on LinkedIn, Instagram, Facebook, and YouTube.