What is Fraud?
Fraud is the act of deception intended to result in financial or personal gain. It takes many forms and has become increasingly sophisticated over time, particularly in digital spaces. Anyone can be vulnerable to fraud, regardless of age, income, or experience.
Fraud in Canada
Fraud is significantly underreported in Canada, with online scams and identity theft accounting for the majority of reported cases and financial losses. Statistics Canada reports that the rate of fraud nearly doubled over the past decade, suggesting the true scale of fraud is likely much higher than reported figures indicate
Common Fraud Types
Here are a few common types of scams. You can view more types here.
Online Scams
Online scams use phishing emails, fake websites, text messages, and social media to impersonate legitimate organizations or individuals, tricking people into sending money or revealing personal and financial information.
Identity Theft
Identity theft occurs when criminals steal personal information such as Social Insurance Numbers or banking details and use it to open accounts, access credit, or commit fraud without the victim’s knowledge.
Romance Scams
Romance scams involve fraudsters forming fake online relationships through dating apps or social media, gradually building trust and emotional dependence before requesting money or financial assistance.
Tax and Government Impersonation Fraud
In these scams, criminals pose as the Canada Revenue Agency or other government agencies, often using threats of legal action or urgent payment demands to coerce victims into sending money or sharing sensitive information.
Common Warning Signs
Many fraud schemes share common warning signs that can help Canadians identify scams before financial harm occurs.
Scams often involve someone who:
- Demands immediate payment.
- Uses threatening or urgent language.
- Asks for secrecy or confidentiality.
- Offers deals that seem too good to be true.
- Sends links and pressures you to click them.
- Requests personal or financial information.
- Asks for payment using cryptocurrency or gift cards.
Who Tracks It
Fraud in Canada is tracked through a coordinated network of reporting agencies, statistical organizations, and law enforcement bodies.
Each plays a distinct role in identifying trends, investigating offenses, and protecting the public.
Canadian Anti-Fraud Centre (CAFC)
The Canadian Anti-Fraud Centre is the national hub for fraud reporting and prevention. It collects fraud reports from individuals and businesses across Canada,
analyzes scam trends, and shares intelligence with law enforcement agencies. While the CAFC does not investigate crimes directly, it plays a critical role in
identifying emerging fraud patterns and educating the public.
Statistics Canada
Statistics Canada compiles and analyzes police-reported fraud data to measure national trends, regional differences, and long-term changes in fraud activity.
Its data is used to understand the scale of fraud in Canada, evaluate impacts over time, and inform public policy and research.
Canada Revenue Agency (CRA)
The Canada Revenue Agency tracks and investigates tax-related fraud, including tax evasion and government impersonation scams.
The CRA also provides public guidance on recognizing fraudulent communications that falsely claim to represent government authorities.
Law Enforcement Agencies
Local, provincial, and federal police services investigate fraud cases that meet criminal thresholds.
Police work with national agencies and prosecutors to pursue charges under the Criminal Code, particularly in cases involving large financial losses, organized crime, or multiple victims.
Fraud Laws
Fraud in Canada is primarily governed by
Section 380
of the Criminal Code of Canada, which makes it a criminal offence to use deceit, falsehood, or other dishonest means to deprive someone of money, property, or services.
The law applies even if the fraud does not fully succeed, as creating a risk of financial loss is sufficient for an offence to occur.
Section 380 is intentionally broad, allowing it to cover both traditional forms of fraud and modern digital schemes. This includes online scams, identity theft, investment fraud,
and impersonation scams involving government agencies or financial institutions. The focus of the law is on intent to deceive, rather than the method used.
Punishments
Penalties for fraud depend on the severity of the offence. Minor fraud may result in fines, probation, or restitution, while large-scale or high-value fraud can lead to lengthy prison sentences.
Fraud involving significant financial loss or breach of trust carries the most severe penalties.
What Canadian Courts Consider:
- The amount of money involved.
- The number of victims.
- Whether the fraud was planned or sophisticated.
- Abuse of trust or authority.
- The financial and emotional impact on victims.
Common Sentences for Fraud in Canada:
- Fines or probation for minor fraud offences.
- Restitution orders requiring offenders to repay victims.
- Conditional sentences or jail time for more serious or repeated fraud.
- Prison sentences of several years for large-scale or highly planned fraud.
- Mandatory minimum sentence of 2 years imprisonment for fraud over $1 million.
Reporting & Prevention
Recognizing scam warning signs and reporting suspected fraud helps protect individuals and supports national efforts to track and prevent fraud.
Canadians are encouraged to report fraud to the
Canadian Anti-Fraud Centre
and remain informed about evolving scam tactics.
Why Reporting Matters
Because fraud is significantly underreported, tracking systems are essential for identifying trends, allocating enforcement resources, and preventing future harm.
Accurate reporting helps authorities detect widespread scams, warn the public, and improve fraud prevention efforts nationwide.
If you are a victim of Fraud please visit CAFC's Website for next steps.