One in four fraud losses in Canada now involves AI-generated techniques
Four in five respondents rated AI-powered capabilities as extremely or very important when selecting fraud prevention vendors. Over the next 24 months, Canadian and U.S. institutions plan to invest most heavily in biometric authentication, cited by 53% of respondents; verifiable credentials and digital identity wallets, at 48%; and behavioural intelligence such as keystroke dynamics, at 47%. Approximately 62% plan to invest specifically in AI-enhanced identity verification.
Websites and mobile apps together account for nearly 70% of fraud losses across North America, with transaction activity representing 39% of losses by customer journey stage, followed by new account creation at 33%. The fraud threat is not concentrated at a single touchpoint – it follows clients through every stage of their relationship with a financial institution.
The performance gap between firms with automated fraud programmes and those relying on manual processes is striking. Organisations with mainly automated programmes reported perceived effectiveness of 89%, compared with 61% for manual-first organisations, and recorded nearly three times the reduction in customer churn (29% versus 10%).
They were also more than twice as likely to track fraud by both channel and payment method, a granularity that gives them a measurable analytical advantage.
“Fraud continues to evolve across every stage of the customer journey, and digital channels and AI-assisted techniques are increasing the speed, scale and complexity of attacks,” said Kimberly White, senior director, fraud and identity, North America, at LexisNexis Risk Solutions.
