March is Fraud Prevention Month and Moneris, Canada’s leading commerce provider, is providing businesses with data and guidance on what to look for when it comes to potential fraudulent behaviours.
New data from Moneris reveals a four per cent increase in reported fraud cases in 2025, compared to the year prior. While the increase is modest, many fraud cases go unreported or even undetected for long periods of time. No matter the time of year, there are important steps businesses can take to mitigate the risk of fraud, said the company.
Mail order/telephone order (MOTO) fraud
Nationwide, mail order/telephone order (MOTO) continues to be the most common fraud type reported to Moneris. “Card Not Present” fraud, primarily involving MOTO transactions, contributed to 65 per cent of all reported cases in 2025. This is up from 62 per cent from 2024, said the company.
Taking card details over the phone or by mail and manually entering the information increases the risk of fraudsters submitting a chargeback. Businesses can mitigate this risk by using secure online payment gateways like Moneris Checkout to protect themselves, added Moneris.
Account takeover (ATO) fraud
Regionally, while most provinces also reported MOTO as their most common fraud type, Ontario saw fraud cases resulting from account takeover (ATO) as the most common. This method involves using stolen information, often obtained through malware or phishing, to access a business owner’s information and can result in funds being diverted to a fraudster. Nationally, account takeover fraud accounted for eight per cent of all reported cases, said Moneris.
Businesses can mitigate this type of fraud by educating staff on the risks and questioning the source of all email messages they receive, it added.
Refund fraud
Moneris said refund fraud on stolen devices dropped to one per cent of all reported fraud cases nationwide in 2025, compared with 16 per cent in 2024 and 13 per cent in 2023.
“This may suggest merchants are taking greater precautions to protect their devices, like checking for tampering, keeping them in sight of security monitoring systems and keeping terminals locked and out of sight when not in use,” said Moneris.
“However, abuse of the refund process rose to nine per cent of reported fraud cases in 2025, compared to one per cent in 2024. Merchants can help reduce the risk of this type of fraud through observing transactions, stringent return policies, password-protected terminals and having administrative restrictions on device access and permissions for employees.”
Cybersecurity and AI
Fraudulent activity has also become more sophisticated, particularly with the growth of AI and other tools that can make it difficult for businesses to identify and report suspect behaviour, said Moneris.
It said there are a few key actions businesses can take to reduce risk, including:
- Review transaction alerts and reports each week to monitor changes in volume, location or refund patterns.
- Teach staff to spot fraud and phishing through regular training sessions.
- Automate daily backups for business and payment related system
- Use Moneris fraud prevention tools such as address verification, CVV checks, and real-time transaction monitoring to catch risky behaviour before payments are processed.
“Fraudulent activity saw a small increase year-over-year in 2025, which on the surface creates little cause for concern. However, many fraud cases go unreported or even initially unnoticed, especially as fraudsters become more sophisticated in their methods,” said Yale Holder, Vice President, Customer Experience.
“Card Not Present fraud, which includes mail and telephone orders, continues to represent the majority of fraud cases nationwide, which reinforces the need for businesses to prioritize more secure payment methods and verification procedures.
““Among the benefits of secure solutions like Moneris Checkout and Moneris Total Commerce is that they integrate with fraud prevention tools that help shift chargeback liability to the card issuer, reducing risk for businesses.
“In Ontario, merchants have seen a spike in account takeover fraud, where fraudsters use stolen information, typically obtained through malware or phishing activities, to divert funds from businesses’ accounts to their own. This trend underscores the importance of education when it comes to cybersecurity best practices.
“Refund fraud on stolen devices is down to nearly zero, which is positive news for merchants. However, employee return fraud and abuse of the refund process are still prevalent, highlighting the importance of strengthening return policies and restricting access to terminals.”
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