Equifax Canada’s latest Market Pulse Fraud Trends and Insights data reveals a notable shift toward first-party fraud, where individuals intentionally misrepresent their own financial information.
First party fraud rates across Canada rose 31 per cent year-over-year between Q4 2024 and Q4 2025. Rates were higher in Ontario and Alberta and were more pronounced among younger demographics nationwide, said Equifax.
It said the findings point to a shift in fraud risk. While third-party fraud continues to be a major threat, a growing share of risk is now coming from applicants using their own identity but providing false, inconsistent, or exaggerated financial information.
“This concerning growth in first-party fraud activity is a trend no lender can afford to ignore,” said Carl Davies, Head of Fraud & Identity at Equifax Canada. “Traditional third-party attacks remain prevalent, but we are also seeing more cases where consumers appear to be manipulating their own information to gain access to credit or banking products.”
Credit Card: Spike in First-Party Fraud
An increase in first-party credit card fraud highlights a concerning shift in consumer behaviour, with first-party credit card fraud nearly doubling year-over-year, rising from 0.08 per cent in Q4 2024 to 0.15 per cent in Q4 2025, alongside elevated delinquency pressure in the category, said Equifax.
It said it found that contradictory or mismatched data submitted by applicants became the dominant form of first-party fraud in credit cards, rising from 59 per cent of first-party cases in Q4 2024 to 77 per cent in Q4 2025. Ontario represented the highest regional exposure, with fraud-related credit loss in the sector reaching as high as $123 million.
Banking and Deposits: The Increase in Falsified Financials
“A similar pattern is emerging in banking and deposits. In that category, third-party fraud attempts declined from 0.45 per cent in Q4 2024 to 0.32 per cent in Q4 2025, while first-party fraud increased from 0.51 per cent to 0.68 per cent over the same period,” said the report.
The nature of the fraud is also changing. Cases involving falsified financial information in banking and deposits increased substantially from 1.5 per cent of first-party cases in Q4 2024 to 21 per cent in Q4 2025, while account abuse increased from 14 per cent to 24 per cent, added Equifax.
“AI-based technology helps to detect falsified documents and identities,” said Davies. “As fraud tactics evolve, Equifax offers reliable AI-powered tools that can help lenders identify both third-party attacks and signs that an applicant may be misrepresenting their financial position.”
More from Retail Insider:
