Fintech
Suspected Digital Fraud Originating from Canada Soars in 2023; Canada with Third Highest Increase in Fraud Rates Among 19 Countries Analyzed by TransUnion
Key Findings:
- 39% growth in the rate of suspected digital fraud attempts year-over-year (YoY) for transactions originating from Canada in 2023.
- 60% of Canadians surveyed said they were recently targeted with fraud, of which 10% fell victim.
- 93% said having confidence their personal data will not be compromised is important when choosing who to transact with online.
- 42% said they abandon their online shopping carts due to fraud and/or security concerns.
- 8.4% of e-commerce transactions in 2023 were targeted by suspected fraud attempts originating from Canada.
- 202% increase in the volume of suspected digital fraud attempts from Canada between 2019-2023.
- 258% increase in the rate of suspected digital fraud attempts originating from Canada within telecommunications sector from 2022-2023.
Canada experienced a significant increase in suspected digital fraud attempts in 2023, with more than 5% of all transactions where the consumer was located in Canada being targeted by suspected fraud, revealed a new data analysis from TransUnion (NYSE: TRU). While the rate of suspected digital fraud grew YoY globally by 8% from 2022-2023, Canadian-based fraud significantly outpaced the global rate with a 39% increase in 2023 from 3.6% in 2022. Canada had the fifth highest rate of suspected digital fraud and the third highest rate increase from 2022-2023 out of the 19 countries analyzed.
The pivot to increasingly digital transactions since the beginning of the pandemic means Canadians face a new norm when it comes to the elevated severity and volume of attempted digital fraud rates. At the same time, the number of digital transactions has markedly risen in the last few years, further fuelling the volume of potentially fraudulent activity with a 202% increase in suspected digital fraud attempts originating from Canada from 2019-2023. The rate of suspected fraudulent digital transactions also increased during this same period by 105%.
“Digital fraud attempts from Canada grew dramatically over the past year across most industries. As the world accelerated digital engagement, fuelled by the pandemic, Canadian consumers and businesses face a new norm with significantly elevated fraud risks,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada. “Canadian businesses and consumers are challenged to remain one step ahead of these increasingly sophisticated and ever evolving fraudsters. Fraudsters continue to prey on organizations that have direct access to money, products or services with easily transferable monetary value. There is no doubt that fraud remediation will continue to be a key priority for organization and businesses.”
Top Industries Targeted by Suspected Digital Fraud from Canada Include Retail, Communities, Video gaming, Gambling and Financial Services.
In 2023, the retail sector experienced the highest rate of suspected digital fraud, with just over 8 in every 100 transactions (8.4%) where the consumer was located in Canada being suspected fraudulent. The rate of suspected digital fraud in 2023 (the number of fraudulent transactions divided by all transactions in that industry) originating from Canada for all industries analyzed were:
- Retail: 8.4%
- Communities (online dating, forums, etc.): 6.2%
- Video gaming: 4.6%
- Gambling: 4.0%
- Financial services: 3.1%
- Telecommunications: 2.7%
- Insurance: 2.5%
- Travel and leisure: 0.6%
- Logistics: 0.4%
Significant Increase in Rate of Suspected Digital Fraud Across Multiple Sectors.
Increased suspected digital fraud rates originating from Canada spanned every industry except one analyzed. The telecommunications industry saw the most significant increase with a 258% jump from 2022-2023; followed by communities at 129%; and financial services at 75%. The only industry without an increase was logistics, which experienced a decline of 34%.
Suspected Digital Fraud Attempts Shift to New Industries Globally vs. Canada
| Industry | Canada Rate Change from 2022-2023 | Global Rate Change from 2022-2023 |
| Telecommunications | +258% | +111% |
| Communities (online dating, forums, etc.) | +129% | +17% |
| Financial services | +75% | +3% |
| Insurance | +43% | -8% |
| Gaming | +27% | +41% |
| Travel & Leisure | +8% | +8% |
| Public sector | +9% | -1% |
| Retail | +4% | +21% |
| Gambling | +4% | -30% |
| Logistics | -34% | -30% |
Fraud Concerns have Strong Influence over Who Canadians Choose to do Business with and make Purchases from.
TransUnion survey data from December 2023 shows that Canadians’ fraud risk and security concerns have significant influence over who they choose to do business with. This includes:
- 42% of Canadians abandon their online shopping carts due to fraud and/or security concerns.
- 71% will not return to a website if they have fraud concerns.
- 93% of Canadians said having confidence their personal data will not be compromised is important when choosing who to transact with online.
- 34% of Canadians have switched their online transactions to another website due to fraud or security concerns.
- 46% of Canadians said that security of their personal data was the number one consideration when deciding what online company to do business with.
Canadians Report Being Targeted by a Diverse Mix of Fraudulent Schemes.
In the same December 2023 survey, 60% of Canadians surveyed said they were targeted with online, email, phone call or text messaging fraud in the last three months, of which 10% fell victim. Of those who said they were targeted, Canadians reported a diverse mix of fraudulent schemes including:
- Phishing (fraudulent emails, websites, social posts, QR codes, etc., to steal data): 50%
- Smishing (fraudulent text messages intended to trick the victim into revealing data): 43%
- Vishing (fraudulent phone calls intended to trick the victim into revealing data): 38%
- Third-party seller scams on legitimate online retail websites: 22%
- Identity theft (personal information like name, address, phone number or security number was stolen in a company’s data breach): 14%
- Social engineering scam (solicited to transfer or move illegally acquired money on behalf of someone else): 18%
- Stolen credit card or fraudulent charges: 14%
- Money mule scam (solicited transfer or move illegally acquired money on behalf of someone else): 12%
- Account takeover (online account used without permission): 11%
- Unemployment fraud: 6%
The Most Suspected Digital Fraud Occurs at Account Creation.
In reviewing the different points in a consumer journey, the data analysis reveals that the highest percentage of digital fraud occurs at account creation.
Globally, the analysis found that 13.9% of all digital account creation activity involved suspected fraud in 2023. For digital transactions where the consumer was in Canada, the suspected fraud rate at account creation was 4.9% last year. In comparison, the rate of suspected digital fraud at account login in Canada was 3.9% in 2023 (2% globally). When money is being exchanged in the transaction for instance for purchases, transfers, deposits and withdrawals, 2.3% of those types of transactions from Canada were suspected fraudulent (3.6% globally).
The post Suspected Digital Fraud Originating from Canada Soars in 2023; Canada with Third Highest Increase in Fraud Rates Among 19 Countries Analyzed by TransUnion appeared first on HIPTHER Alerts.
As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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