ID theft and false credit applications drive 54% surge in auto fraud, Equifax Canada report finds

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ID theft and false credit applications drive 54% surge in auto fraud, Equifax Canada report finds
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The biggest jump in auto fraud rates was in Ontario, where they doubled since last year, the report released Tuesday said

Driven by fake credit applications and identity theft, automotive fraud has surged 54 per cent from a year ago, a report from Equifax Canada has found.

The biggest jump in auto fraud rates was in Ontario, where they doubled since last year, said the report released Tuesday. “When you combine those two, I think that’s driven a lot of the fraud activity into the auto sector this time around,” he said.The most common type of fraud was first-party fraud, where people knowingly provide false information about their finances, such as lying about how much money they make.

He said the high cost of living, which has pressured many Canadians’ household budgets, could also be underpinning rising fraud rates.First-party fraudwas higher among younger Canadians because they think white lies won’t hurt them, he said, but providing false information can lead to serious penalties in the long term such as loan denials, damaged credit and legal ramifications.

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