$704 Million Lost to Fraud in 2025: The Numbers Behind Canada's Hidden Crime

March 2026 marks the 22nd edition of Fraud Prevention Month in Canada, and this year's theme — "The Hidden Crime" — reflects a troubling reality. The Canadian Anti-Fraud Centre (CAFC) reports that Canadians lost over $704 million to fraud in 2025. Reported losses since 2022 now surpass $2.4 billion. And these numbers likely represent only a fraction of the actual harm.

The Reporting Gap

The most striking finding in the CAFC's data is not the dollar figure — it's the reporting rate. Authorities estimate that only 5% to 10% of fraud cases are reported. This means the true cost of fraud in Canada could be anywhere from $7 billion to $14 billion annually.

Why don't people report?

• Embarrassment — many victims feel shame about being deceived
• Perceived futility — a belief that reporting won't lead to action
• Small individual losses — individual losses may seem too small to justify the effort
• Complexity — the process of reporting fraud involves multiple agencies across different jurisdictions
• Lack of awareness — many consumers don't know where to report or what qualifies as fraud

This underreporting creates a dangerous cycle. When fraud goes unreported, authorities lack the data they need to identify patterns, prioritize investigations, and allocate enforcement resources. The less fraud is reported, the less fraud is detected, which in turn discourages future reporting.

Where Auction Fraud Fits

The CAFC categorizes fraud into broad categories: identity fraud, investment fraud, service fraud, romance fraud, and others. Auction and marketplace fraud falls within the broader category of commercial deception, which includes misrepresentation, shill bidding, and price manipulation.

The CCB's own data suggests that auction fraud is particularly underreported. Many consumers who experience shill bidding or employee self-dealing at auction houses don't recognize that what happened to them was fraud. They attribute their overpayment to bad luck or poor judgment rather than deliberate manipulation.

This is exactly what makes it a "hidden crime."

The Financial Impact by the Numbers

| Metric | Value |

|--------|-------|

| Reported fraud losses in 2025 | $704 million |

| Cumulative losses since 2022 | $2.4 billion |

| Estimated reporting rate | 5-10% |

| Estimated true annual losses | $7-14 billion |

| Top fraud types by volume | Identity, investment, service fraud |

| Top fraud types by dollar loss | Investment, romance, job fraud |

Why Your Report Matters

Every fraud report, regardless of the dollar amount, contributes to a larger picture. The CAFC, the Competition Bureau, and provincial consumer protection agencies all use complaint data to:

• Identify patterns — a single complaint may seem minor, but when combined with dozens of similar complaints about the same platform, it triggers an investigation
• Prioritize enforcement — agencies allocate resources based on complaint volume and financial impact
• Build cases — prosecutors need evidence of systematic conduct, not just isolated incidents
• Inform policy — the federal government's new National Anti-Fraud Strategy is being shaped by complaint data

How to Report

If you have experienced fraud at an online auction — whether it's shill bidding, misrepresentation, hidden fees, or employee misconduct — report it:

1. Canadian Anti-Fraud Centre — call 1-888-495-8501 or report online. The CAFC is the central agency for collecting fraud intelligence.
2. Competition Bureau — for deceptive marketing practices and bid rigging under the Competition Act
3. Your provincial consumer protection office — for violations of provincial consumer protection law
4. The CCB — file a complaint to contribute to our pattern analysis and investigation referrals
5. Local police — for criminal fraud involving theft or identity fraud

Document your evidence before reporting. Thorough documentation significantly increases the likelihood that your complaint leads to action.

The Bottom Line

The $704 million figure is alarming, but the real number is likely ten times higher. The only way to close the gap between reported and actual fraud is for more consumers to report. If you have been the victim of auction fraud, your report is not just about your individual case — it's a contribution to the collective effort to make Canadian marketplaces fair and transparent.