Aug 13, 2025
Despite conventional wisdom, Canadians are far more likely to encounter fraud when using cash. That’s according to a new study released by Payments Canada (PC), which highlights a curious contradiction: While Canadians overwhelmingly view cash as the safest payment method, they are nearly three times more likely to encounter fraud using cash compared to paying with credit cards.
The report, based on data collected over a six-month period in 2025, found that 13% of Canadians experienced payment fraud, a figure that’s held steady since 2021. However, fraud rates varied significantly among different demographics.
Young adults, newcomers more frequently targeted
The report from PC reveals that Canadian newcomers are particularly vulnerable, experiencing nearly twice the rate of payment fraud compared to the general population (25% versus 13%). Younger Canadians aged 18–34 made up 58% of those who experienced payment fraud in the past month.
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“While the rate of payment fraud has remained steady over the last few years, we saw shifts in the types of payment fraud that Canadians experienced,” said Jon Purther, Director of Research at Payments Canada, in a statement. “In particular, our research reveals that Canadians encountered the highest level of fraud when using cash compared to any other payment type.”
Purther adds that while cash has a long history as a trusted medium, it’s now more susceptible to “old techniques” like pickpocketing, counterfeiting and in-person scams, such as romance and impersonation scams, with fraudsters continually evolving their techniques.
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Real losses — but often reimbursed
More than half (60%) of reported fraud incidents involved actual financial loss. However, in many cases, the losses were relatively small — typically under $500 — and 65% of victims were fully reimbursed by their financial institution. Another 21% received partial reimbursement.
Interestingly, older Canadians were the least likely to lose money, with 60% of that group saying they have not lost money to fraud, compared with just 23% of younger Canadians.
Despite these risks, some Canadians are still struggling with basic online security. Nineteen percent admitted to using the same password for all of their accounts, and 6% have shared personal or banking information via email or text message.
Fear of scams changing spending behaviour
A growing number of Canadians say fraud concerns are directly affecting how they spend money. More than half (53%) say they’ve changed their payment habits due to fraud concerns, and one in four Canadians (25%) say they’ve risked missing a bill payment because they weren’t sure whether a communication was legitimate.
Thirty-two percent say they struggle to identify scam messages from legitimate ones, and 67% say they try to verify the safety of e-commerce websites and only shop with trusted sites.
Despite all this, 72% of Canadians still believe cash is the most secure payment method, followed by Interac e-Transfers (60%) and credit cards (55%).
Read more: The ultra-rich are bailing on volatile stocks right now — these 4 shockproof assets are their new safe havens
Industry response and collaboration
Payments Canada emphasized the need for cross-sector cooperation in the fight against payment fraud. The organization continues to work with the Canadian anti-scam alliance, which includes more than 50 partners from the financial, telecom, law enforcement and tech sectors.
“Payment fraud is a global challenge with constantly evolving fraudster tactics and Canada is no exception,” said Donna Kinoshita, Chief Payments Officer at Payments Canada, in a statement. “We are excited to be the first country to implement a centralized fraud system for Canada’s forthcoming Real-Time Rail payment system from day one of launch.”
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
