Financial Fraud and Scams in Canada (July 2026)

Canada is experiencing record fraud losses—$704 million reported in 2025, with actual losses estimated between $7–14 billion due to underreporting. The landscape is evolving rapidly, with AI-powered scams, impersonation frauds, and investment schemes leading the charge.

1. Deepfake & AI-Enabled Scams:

Current Threat

• Deepfake investment ads impersonate political figures and organizations (e.g., RBC, Mark Carney, Kevin O'Leary).
• Voice cloning and AI-generated videos create convincing but fraudulent content exploiting tariffs and rising cost-of-living concerns.
• Notable case: An 86-year-old Ontario senior lost over $900,000 to an AI deepfake impersonating PM Justin Trudeau promoting a cryptocurrency scheme.

Red Flags

• Unnatural facial movements, lip-syncing issues, blurry/warped features
• Robot-sounding voices or voiceovers
• Low-resolution or pixelated videos to hide AI imperfections

2. Investment & Cryptocurrency Scams:

Top Investment Fraud Types (2026)

Scope of Disruption

• Canadian Securities Regulators (CSA) disabled 7,586+ fraudulent investment platforms and 13,000+ URLs between June 2025 and February 2026.

3. Impersonation Scams:

Bank & Financial Institution Impersonation

• Fraudsters pose as bank staff/investigators claiming account compromise.
• Tactics: Request one-time security codes, passwords, PINs, or direct money transfers to "safe accounts."
• Key Players Targeted: RBC, BMO, CIBC, Scotiabank, Laurentian Bank.

Government & Regulatory Impersonation

• CRA/Service Canada: Threats of legal action for unpaid taxes.
• Canadian Anti-Fraud Centre (CAFC): Using CAFC's logo and spoofed contact details to claim investigations or offer fund recovery—then demand payment or remote access.
• Important Note: CAFC will never ask for money, remote device access, verification codes, or promise to recover funds.

Investment & Tech Professional Impersonation

• Fake investment advisors using deepfake audio/video.
• Tech support scammers claiming device infections and demanding remote access or payment.

Family Emergency Scams (Grandparent Scams)

• Scammers impersonate distressed family members needing urgent bail, medical, or rent money.
• Heavy targeting of seniors.

4. Phishing, Smishing & Other Scams:

• Phishing emails: Fake speeding tickets, undelivered packages, phishing links.
• Smishing (SMS): Text-based fraud using similar tactics.
• Fund Recovery Scams: Previous victims contacted by fraudsters offering to recover lost funds—only to extract more money.
• Romance/Relationship Scams: AI chatbots trained on romance narratives building trust over time ($63M in losses, 2025).
• Job Scams: Fake recruiter offers ($50M in losses, 2025).

5. Key Statistics & Vulnerable Groups

6. Government Response & Protections

• National Anti-Fraud Strategy (Launched March 2026): Coordinates efforts across financial institutions, telecoms, and law enforcement.
• Proposed Banking Regulations (Bill C-115): Seven new rules effective July 1, 2027, enhancing consent/control over wire transfers and e-transfers; lets consumers disable high-risk functions.
• Fraud Prevention Month (March 2026): Highlighted impersonation fraud as one of the fastest-growing types.

7. Protection & Prevention Checklist

• Verify independently: Call financial institutions using phone numbers on the back of your cards, not from unverifiable sources.
• Guard personal info: Never share passwords, one-time security codes, PINs, or sensitive data to unsecure websites or unsolicited callers.
• Spot red flags: Urgency, pressure, promises of unrealistic returns, requests for remote access.
• Verify investment advisors: Use aretheyregistered.ca and CSA's National Registration Search.
• Enable multi-factor authentication (MFA) on all accounts.
• Report suspicious activity: Contact RBC, local police, and the Canadian Anti-Fraud Centre at antifraudcentre-centreantifraude.ca.
• Be cautious with AI content: Verify identities through official, independent channels—don't trust audio/video alone.

Market Update

Global markets enter the second half of the year with investors weighing a constructive earnings backdrop against several lingering risks. We discuss geopolitics, review what drove markets through the first half of 2026, and outline the factors likely to shape returns through year-end.

Geopolitics: Insights from Crises

Until recently, the memorandum of understanding between the U.S. and Iran has mostly held, though periodic tensions continued to test its durability. Financial markets had drawn confidence from a notable pickup in shipping through the Strait of Hormuz, which had sharply reduced downside risks to the economy. Equity markets continue to hover near record highs, bond yields have eased from conflict-driven peaks, and oil prices have retraced much of their previous rise.

While key negotiating points remain unresolved, recent events underscore the value of maintaining a long-term perspective. History shows that market reactions to geopolitical shocks tend to be temporary unless they materially impair economic growth or corporate profitability. Equally important, the global economy is influenced by a wide range of interconnected forces rather than any single event and its ability to adapt to supply chain disruptions is often underappreciated. Although the Strait remains a critical energy transit chokepoint, the economic fallout was softened by a world economy that has significantly reduced its “oil intensity” over time, as well as by inventories and the ability of businesses and consumers to adapt quickly.

More broadly, the U.S.-Iran conflict reinforces why we believe a disciplined and multi-lens approach to portfolio management is an effective way to navigate uncertainty while participating in long-term market appreciation.

Looking Back, Looking Ahead

Despite unsettling geopolitical headlines, the first half of 2026 was ultimately a strong one for markets. Global equities advanced roughly 15% in Canadian-dollar terms, supported by sustained AI-related spending and rising earnings expectations. U.S. equities posted similar gains, driven largely by the same forces. Canadian equities also performed well, returning roughly 11%, with Financials, Energy and Industrials among the key contributors. International developed markets (+14%) participated in the rally, while emerging markets (+28%) were the standout, benefitting from strength in Asia tied to AI infrastructure.

Meanwhile, inflation uncertainty weighed on fixed income returns as yields moved higher—which pushed prices lower—with global bonds essentially flat and Canadian bonds generating modestly positive total returns.

Looking ahead, the second half begins with a more favourable economic setup than the geopolitical environment suggested just a few months ago. If flows through the Strait continue to normalize, lower fuel prices should directly benefit consumers while reduced transportation and fertilizer costs could help moderate inflation. These benefits should be especially meaningful in regions with greater dependence on imported energy, including Europe and Asia.

In the U.S., business investment in AI will likely remain a key pillar for the economy and markets, albeit one that also introduces risks as debates around AI disruption and whether companies can earn an adequate return on that outsized spending swing between optimism and caution.

In Canada, RBC Economics anticipates growth and labour market conditions to gradually improve through the second half. However, trade policy remains an important source of uncertainty. The CUSMA review process has shifted into an annual review framework rather than a straightforward 16-year extension, leaving the agreement in place but prolonging uncertainty for businesses that could dampen investment and hiring decisions.

Takeaway

The first half of the year provided another reminder that markets can remain resilient even amidst a steady stream of worrisome headlines. While that resilience is reassuring, it is worth noting that valuations across most markets are reflecting a fairly upbeat outlook, potentially leaving less room to absorb disappointments should earnings or economic growth fall short of expectations.

On balance, our central economic scenario continues to support a reasonably constructive path for markets in the quarters ahead, with diversification and a disciplined investment approach remaining the foundation for navigating an increasingly complex environment.

Should you have any questions, please feel free to reach out.