New data suggests fraud in auto, credit card and mortgage sectors

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New data suggests fraud in auto, credit card and mortgage sectors

New data suggests that fraud is increasing in the auto, credit card and mortgage sectors, driven by growing financial pressures on consumers and by fraudsters using bold schemes.

The Equifax Canada report shows that fraud in the automotive sector has risen 28 per cent year-on-year, while credit cards have seen a jump of 37.9 per cent. The fraud rate rose 18 percent to 17.8 percent in the mortgage sector.

Equifax Canada's Carl Davies, head of fraud and identity operations, says that if interest rates remain high, the trends in fraudulent activities could accelerate in the months ahead.

As a result of the supply chain problems in the auto industry, he said, fraudsters and thieves should be more brazen in targeting auto dealerships, as well as identity fraud in applications.

Davies said that car theft rings are more cunning than ever in using convincing fake identification, and auto dealerships should improve their verification processes to prevent fraud.

The report states fraudsters are using artificial identity, which are a combination of real and fake details, making up 68.5 percent of all fraudulent credit card applications.