
by MorinvilleNews.com Staff
Canadian small businesses are increasingly falling victim to fraud, with half of them (50%) facing either attempted or successful fraud in the past 12 months. According to a new report by the Canadian Federation of Independent Business (CFIB) in collaboration with Interac Corp., these fraudulent activities resulted in significant financial and operational strain, with impacted businesses reporting average losses of $7,800 over the past year.
The survey found that fraud is not just about financial loss. Three-quarters (76%) of businesses reported losing valuable time dealing with the aftermath, while over half (51%) suffered from negative emotional impacts, and nearly one-quarter (23%) saw decreased staff morale.
“Whether you’re a consumer, a mom-and-pop shop or a big industry player, we’ve all been impacted by fraud in some shape or form. Dealing with their consequences can be frustrating and time-consuming, especially for small business owners who often don’t have enough time or resources to address this growing issue,” said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB.
Fraud on the Rise: Common Schemes and Sector Vulnerabilities
The most common types of fraud attempts include email phishing scams (85%), text (77%), and phone scams (76%). While these methods are widespread, businesses are most vulnerable to financial losses through fraudulent payments and chargebacks. The latter occurs when a customer falsely disputes a legitimate transaction, and nearly 20% of affected businesses reported this as a primary source of fraud-related losses.
Certain sectors, including hospitality, retail, transportation, and personal services, were found to be particularly susceptible to these types of scams. A retail business owner from Alberta expressed frustration with the constant barrage of fraud attempts, stating, “For me, the biggest issue with fraud is the constant phone calls about refused payments with a bank or Amazon. It’s unbelievable how many of these I receive—several times a day on some days.”
Rising AI Concerns
Nine out of ten business owners (90%) are concerned that artificial intelligence (AI) will make fraud harder to detect. The rapid evolution of AI tools has enabled more sophisticated schemes, making it difficult for businesses to keep up. “This research drives home how important it is for the ecosystem to prioritize fraud prevention and detection,” said Joanna Schoneveld, Fraud Management Leader at Interac. “We are investing in solutions that help business owners stay ahead of an ever-evolving fraud landscape so their focus can remain on operational growth and customer trust.”
Calls for Government Action

The CFIB is calling on governments to do more to help businesses combat fraud. Recommendations include enhancing the Code of Conduct for the Payment Card Industry to provide more transparency and accountability for merchants, improving complaint handling processes for chargebacks, and offering financial assistance to small businesses so they can invest in IT security.
Governments are also being urged to allocate more resources to cyber policing and provide clear reports on fraud-related outcomes, specifically for small and medium-sized enterprises (SMEs). Additionally, the CFIB suggests that authorities should proactively share information on best practices to help businesses stay ahead of the growing threat of cyberattacks.
Businesses Respond with Heightened Security Measures
In response to rising fraud, many businesses are stepping up their defenses. Half of Canadian businesses have implemented stricter payment verification processes, such as multi-factor authentication for online transactions. Furthermore, 36% have increased their cybersecurity investments, while 32% have improved employee training to better recognize and prevent fraud.
“Fraud is here to stay, and unfortunately, the rise in various AI tools is only exacerbating the issue. While October marks Cybersecurity Awareness Month in Canada, it’s important to stay vigilant year-round,” Pohlmann concluded.
Business owners seeking advice on protecting their operations can reach out to CFIB’s Business Advisors or visit Interac.ca for fraud prevention tips. To report fraud, businesses are encouraged to contact the Canadian Anti-Fraud Centre, the RCMP, or local police departments.