Fraud Prevention Month serves as a powerful reminder, but the truth is clear: businesses must stay vigilant every single day. Fraud attempts are increasing in scale, sophistication, and impact - making it critical for organizations of all sizes to reinforce their defenses
According to the Canadian Anti‑Fraud Centre (CAFC), more than 112,000 cases of fraud, with total losses amounting to over $704 million were received in 2025, yet only an estimated 5% to 10% of fraud is ever reported, meaning the real total is likely far higher. Businesses are increasingly in the crosshairs: in the last year alone, Canadian companies reported losses of $24.5 million - though the actual impact is believed to be much greater due to persistent underreporting.
The types of fraud targeting organizations are evolving just as quickly. In 2024, the most reported types of fraud in Canada included identity fraud, service fraud, and investment fraud - schemes designed to extract sensitive information such as passwords, banking details, or SIN numbers.
As Canadian business owners face ongoing economic pressures and rapidly shifting digital threats, fraudsters continue to exploit uncertainty—crafting highly convincing schemes that mirror legitimate business communications, supplier requests, and financial transactions.
Recognize
The first step in combating fraud is to recognize the warning signs. Fraudsters often employ sophisticated techniques to deceive businesses, but there are common indicators that can help you identify potential threats:
- Unusual Transactions: Be alert to transactions that deviate from normal patterns. These may include large or unexpected purchases, repeated small transactions, or transactions from unfamiliar locations.
- Phishing Attempts: Watch out for emails or messages that ask for sensitive information, contain suspicious links, or have a sense of urgency. Verify the sender’s identity before responding to such requests. Watch for minor differences in email addresses, which might be attempts to spoof a known vendor. One way to identify scammers is to change the communication channel. Call if you receive a suspicious email, or email if you receive a suspicious call. Scammers usually cannot impersonate someone across multiple channels, making this a useful precaution.
- Altered Documents: Fraudsters may alter invoices, contracts, or other documents to mislead your business. Look for inconsistencies in font, formatting, or signatures. Use document verification tools to ensure authenticity.
- Unusual Behavior: Employees or partners exhibiting uncharacteristic behavior, such as sudden financial difficulties and abrupt changes in financial reports may be potential red flags.
- Vendor and Supplier Fraud: Be wary of vendors who insist on upfront payments, offer deals that seem too good to be true, or lack a verifiable history.
Banks will never ask you to:
- Install software to enable remote access or remotely access your devices
- Download an app or third-party software through a phone call, email, text message or enclosed link
- Disclose your PIN, password, one-time verification code or bank card numbers when we contact you
Reject
Once potential fraud is recognized, the next step is to reject it. Implement robust measures and create an effective security plan to safeguard your business from fraudulent activities:
- Authentication Procedures: Strengthen authentication processes for accessing sensitive information and conducting transactions. Use multi-factor authentication (MFA), strong passwords, and biometric verification to enhance security.
- Strong Internal Controls: Strengthen internal controls in order to detect fraud faster, shorten fraud duration, and reduce fraud losses.
- Employee Training: Educate employees about common fraud schemes and the importance of adhering to security protocols. Regular training sessions can empower employees to identify and reject fraudulent attempts confidently.
- Segregation of Duties: Ensure that more than one person is responsible for financial reconciliation to reduce the risk of errors and fraudulent activities, this also adds an additional layer of oversight and accountability.
- Secure Payment Methods: Adopt secure payment methods, such as credit card processing with encryption, tokenization, and secure payment gateways. Avoid using unsecured or unfamiliar payment platforms.
- Vendor Verification: Verify the legitimacy of vendors by checking their business credentials, references, and financial stability. Avoid conducting business with unverified or suspicious entities.
- Data Protection: Implement robust data protection measures to safeguard sensitive information. Use encryption, secure servers, and regular data backups to prevent unauthorized access and data breaches.
- Regular Audits: Identify and address vulnerabilities before fraudsters do.
Report
Reporting fraud promptly is crucial to mitigating its impact and preventing future occurrences. If you suspect you’ve been a victim of fraud, it’ s essential to take the following steps:
- Contact your bank immediately—Scotiabank business clients can reach out to their Relationship Manager for rapid support.
- Notify local law enforcement.
- Report the incident to the Canadian Anti‑Fraud Centre (CAFC) via 1‑888‑495‑8501 or https://reportcyberandfraud.canada.ca
Remember
Fraud Prevention Month reminds us of the risks, but protecting your business must be a year‑round effort. Fraudsters are evolving, and so must your defenses. By staying informed, strengthening internal controls, and acting quickly, businesses can significantly reduce exposure and safeguard both financial and reputational integrity.
To learn more about improving your business’s security, visit:
https://www.scotiabank.com/ca/en/security/protecting-your-business/improve-business-security.html