Budget 2025 will outline the government's plan to develop a new federal anti-fraud strategy to combat financial fraud, the National Anti-Fraud Strategy.
Financial fraud impacts everyone and is becoming harder to detect and more prevalent in Canadians' daily lives. In 2024, the Canadian Anti-Fraud Centre (CAFC) reported that Canadians had $643 million stolen due to fraud, representing nearly a 300 per cent increase since 2020. The CAFC estimates that this figure only represents 5 to 10 per cent of total fraud losses in Canada, given that many victims are reluctant to report fraud.
Currently, the only legislative requirements are a limit of consumer liability for unauthorized credit card transactions at $50 and the understanding under the Canadian Code of Practice for Consumer Debit Card Services that consumers are not liable for losses in circumstances beyond their control, such as unauthorized use of the debit card.
As an initial step of the new Federal Anti-Fraud Strategy, the government will introduce legislative amendments to the Bank Act. These amendments would require banks to:
- Have policies and procedures in place to detect and prevent consumer-targeted fraud and mitigate its harms.
- Obtain the express consent of personal deposit account holders before enabling account capabilities which fraudsters can use to steal consumers' money, including transfer and payment capabilities, and to permit account holders to disable capabilities they do not want.
- Allow personal deposit account holders to adjust their transaction limits to protect themselves.
- Collect data on financial fraud and report it to the Financial Consumer Agency of Canada (FCAC).
These measures will directly benefit all Canadians; with a considerable impact on seniors, newcomers, and other vulnerable populations.
Establishing a Financial Crimes Agency
Financial crimes such as fraud and money laundering are serious crimes that threaten the safety, security, and well-being of Canadians. These criminals, often linked to organized crime, are using sophisticated schemes and tools to commit their crimes and launder their illicit profits.
Leveraging investments in federal law enforcement capacity, Budget 2025 announces the creation of a new Financial Crimes Agency. It will bring together the required expertise to investigate crimes such as money laundering, and online fraud and financial scams, and recover criminals' illicit proceeds.
The Minister of Finance will work with the Minister of Justice and the Minister of Public Safety to bring forward legislation by Spring 2026 to stand up the Financial Crimes Agency.
Protecting Against Economic Abuse
Economic abuse is another, albeit lesser known, damaging form of gender-based violence and financial harm. It occurs when one person controls another's access to money, credit, or financial resources, trapping them in dependence and fear. Seniors are also particularly vulnerable, especially when financial control or exploitation comes from family members or caregivers. Economic abuse can destroy lives and independence. It can prevent a person from leaving an abusive relationship, from rebuilding their future, and from participating fully in the economy.
Budget 2025 will announce the Government of Canada's plan to work with stakeholders and banks to develop a voluntary Code of Conduct for the Prevention of Economic Abuse. The Code will set clear expectations for how banks can identify, prevent, and respond to economic abuse.
Banks are uniquely positioned for a Code as they offer essential financial services and interact directly with customers across all demographics. They are often the first to observe indicators of financial distress or coercion. Equipped with clear protocols, they can respond appropriately, safeguard customer autonomy, and ensure that financial services operate as a point of early intervention and support.
The development of the Code will be guided by several principles:
- An inclusive and victim and survivor-centered approach
- Promoting financial empowerment and independence
- Fostering a collaborative approach among stakeholders
- Continuous improvement
Ultimately, the intent of the code is to ensure that banks position themselves well to identify, prevent, and respond to economic abuse, as well as to support and promote the financial empowerment and independence of victims and survivors.
