Payment trends shifting due to fraud concerns, survey finds

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It appears Canadians have wisened up to the prevalence of fraud and identify theft, which claims millions of dollars every month from unsuspecting victims.

A new report from Payments Canada, released Monday, shows 54 per cent of Canadians have changed their payment behaviours due to the risk of fraud and cyber crime.

Overall, 13 per cent of respondents had been affected by fraud in the past six months.

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Additionally, 32 per cent of respondents have a hard time determining whether a phone or email payment notice is legitimate, and 22 per cent have concerns they might miss a bill payment by mistaking a legitimate notice for a fraudulent one.

While we often associate these types of payment scams with seniors, Payments Canada suggests young Canadians are just as susceptible.

The report found young Canadians are much more likely than older generations to fall victim to a “push payment fraud,” which involves scammers impersonating a well-known business or government agency and earning the victim’s trust before asking for a payment.

“Since young Canadians are more likely to send/receive money to/from a friend or family member using social media platforms and regularly use other electronic payment methods besides credit cards and prepaid cards as compared to other age groups, their overall risk exposure for push payment fraud is higher,” the report states.

Canadians older than 55, however, were most likely to have their personal or financial information stolen, without losing money.

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The report cited a number of ways Canadians protect themselves from fraud, with 79 per cent of respondents saying they limit the amount of personal information they put online, while 70 per cent said they only shop on trusted sites.

The report also found more Canadians are using two-factor authentication. It said 65 per cent of respondents now use the privacy practice, compared to 50 per cent in 2021.

Despite the use of two-factor authentication, password management is still an issue for Canadians. The survey found 35 per cent of respondents store their passwords in a document on their phone, computer or email, while 28 per cent of young Canadians say they use the same password for all their accounts.

According to the Canadian Anti-Fraud Centre, more than 15,000 Canadians have fallen victim to fraud in the first half of 2024, with losses totalling more than $284 million.

The agency suggests Canadians should avoid giving out personal information to a caller, refuse requests for upfront fees and use strong passwords or multifactor authentication.

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Cocoa prices, which had been experiencing a record boom, have dipped to their lowest point in four months as improved supply and weakened demand hurt the industry.

Cocoa futures have fallen 13 per cent this month, after more than doubling earlier in the year. Still, investors expect higher prices to continue and chocolate makers have already warned that margins may be tight as prices stay high.

Read more here.

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Read more here.

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Today’s Posthaste was written by Ben Cousins, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

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