Credit card fraud rose sharply in the first half of 2025, according to a trends report by

Equifax Canada . Released Oct. 1, the Equifax report said third-party fraud now drives 83 per cent of all fraudulent credit card activity, with identity fraud accounting for 78 per cent of those cases.

Middle-aged Canadians are increasingly being targeted, especially in Ontario and Atlantic Canada, which had the sharpest increases. Those two regions also had a rise in delinquency rates, surpassing pre-pandemic levels.

“Fraudsters are no longer targeting specific consumer groups it seems, (but) rather, indiscriminately striking across the credit spectrum as of late,” said Carl Davies, head of fraud and identity at Equifax Canada.

Davies said this “concerning” surge in credit card fraud requires vigilance from lenders, policymakers and consumers alike.

Equifax’s director of fraud consulting, Cherolle Prince, said credit cards is one area where fraudsters adapt rapidly. They exploit both gaps in verification and economic uncertainty among consumers, she said.

“Credit cards remain a central point of vulnerability,” said Prince, adding that the rise in credit card fraud underscores the urgency of investing in stronger identity verification, data sharing and cross-industry collaboration.

Outside of the credit card sector, third-party fraud declined both quarterly and annually, with identity theft continuing to drive most of the fraudulent activity, Equifax said.

First-party fraud, on the other hand, is seven per cent higher than a year ago. This type of fraud involves a customer misrepresenting their identity or financial circumstances for gain.

Misrepresentation of one’s financial position, often in the form of falsified documents, continues to be a major source of fraud, the report said.

First-party fraud is particularly prevalent in the mortgage industry, although it fell to 0.19 per cent in the second quarter of 2025, down from 0.29 per cent a year earlier. Forged income and employment documents accounted for more than 75 per cent of fraudulent mortgage cases.

The report said income and employment fraud is also a major concern in the auto sector, where it makes up close to 30 per cent of cases.

Davies said Equifax Canada typically sees seasonal spikes in fraud toward the end of the year. He said Canadians are encouraged to learn more about how to help protect themselves and their families from identity theft and fraud.

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