As Canada Faces Record $704M in Fraud Losses, How Can We Avoid Falling Victim to Scams?

During Fraud Prevention Month, the tech company Facephi offers a series of tips on digital fraud

TORONTO, March 25, 2026 (GLOBE NEWSWIRE) -- According to the Canadian Anti-Fraud Centre (CAFC), Canadians reported losses of over $704 million to fraud in 2025 — and that figure represents only 5 to 10 percent of actual incidents. Since 2022, reported losses alone have surpassed $2.4 billion. Identity fraud remains the single most reported type of fraud, accounting for 8,403 cases last year.

As Fraud Prevention Month 2026 unfolds, Facephi, digital identity verification and fraud prevention company member of the Digital ID & Authentication Council of Canada (DIACC), is contributing an expert perspective on why the fraud challenge has fundamentally changed and how a three-tier, AI-First approach to identity security provides the most effective defence.

“AI has industrialized identity fraud. Synthetic identities, deepfake video for KYC bypasses, Fraud-as-a-Service kits, these are not emerging threats. They are operational realities that any institution onboarding customers digitally must address today. The question is not whether to adopt advanced identity security, but whether your current system covers all the stages where fraud can occur,” says José Israel Castro, Regional Manager NORAM.

How can we avoid fraud?
Every day, thousands of faces that have never existed are created with striking realism, complete with natural skin textures, subtle asymmetries, and lifelike expressions. These digital personas may never perform everyday human activities as go to the dentist, but they are increasingly capable of bypassing traditional security systems to open bank accounts, apply for loans, or impersonate trusted contacts across messaging platforms.

Simple precautions can make a significant difference: be wary of unexpected messages that create urgency, verify requests for money through secondary channels, and look closely for inconsistencies in video or images—such as unnatural blinking, lighting mismatches, or slight distortions around facial features, which can indicate a deepfake. Additionally, individuals should remain vigilant about becoming “Money mules,” often unknowingly recruited through seemingly legitimate job offers that involve transferring funds.

José Israel Castro makes it clear that “Facephi provides continuous protection for the company throughout the entire customer lifecycle, seamlessly, without the user even noticing. It is a comprehensive model, and it is the only approach robust enough to tackle the scale of AI-driven fraud by 2026.”

Is it really you?
iBeta-certified facial biometrics with passive liveness detection can distinguish, in milliseconds, whether an image is real or an AI-generated deepfake—without any friction for the user.

Is someone using your account?
The system analyzes over 3,000 digital signals, typing speed, clicks, navigation, and behavioural patterns to build a unique “cyber DNA” for each user, instantly flagging any impersonation attempt.

What does your network look like?
So-called Money mule accounts, often used for money laundering or coordinated scams, are identified before any suspicious activity occurs by detecting hidden connections and AI-driven behavioral patterns.

As a DIACC member, Facephi's solutions are developed in alignment with the Pan-Canadian Trust Framework, PIPEDA, and FINTRAC obligations, ensuring that biometric data is handled under the highest standards of privacy by design. Facephi holds ISO 27001 and SOC 2 Type 2 certifications and follows NIST guidelines.

Fraud Prevention Month is an opportunity to empower digital education and organizations to protect their customers, enabling secure digital ecosystems.

About Facephi
Facephi is a technology company specializing in anti-fraud, digital identity protection, and verification, offering AI/ML-powered solutions for regulated industries. It combines multi-biometrics, behavioral signals, money mule detection, and orchestration into an end-to-end platform that reduces fraud and friction, accelerates go-live in weeks, and ensures regulatory compliance from day one.

With over a decade of experience in technology development, headquartered in Spain and with subsidiaries in APAC, EMEA, and LATAM, the company serves clients in more than 30 countries worldwide, providing innovative solutions that address security challenges in an ever-evolving digital environment.

Media contact: irenehernandez@facephi.com

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