More than a tenth of both online communities and gambling transactions coming from Canada were suspected of digital fraud in the first half (H1)[1] of 2025 – with online communities experiencing a 68% year-over-year (YoY) increase in the volume of attempts.

Key Study Findings:

• Fraud losses in a year for companies of 200 Canadian business leaders surveyed increased 42% from 2024 to 2025 from $78 billion to $111 billion up 42%).
• Scams remained the leading cause of financial losses according to those surveyed, accounting for 29% of them.
• 60% of Canadian business leaders reported their customers have been victimized by fraudsters impersonating their brand in an email.
• 48% said their customers were victimized by fraudsters spoofing their business’ phone number or name on caller ID in the past year.
• Online communities (forums and dating platforms) saw the highest YoY increase in the number of suspected digital fraud attempts in Canada among all industries analyzed, climbing 68%.
• Despite financial losses from fraud increasing according to business leaders surveyed, suspected digital fraud attempts for transactions where the consumer was in Canada declined from 5.4% in H1 2024 to 4.2% in H1 2025.

According to the newly-released H2 2025 Update to the Top Fraud Trends Report from TransUnion (NYSE: TRU), Canadian business leaders said their companies lost the equivalent of 7.2% of revenues to fraud over the past year – totalling CAD$111 billion, up from CAD$78 billion in 2024. Findings in that survey also determined there is a significant concern over spoofing scams, with 48% of Canadian business leaders saying their customers were victimized by fraudsters spoofing their business’ phone number or name on caller ID in the past year, and 60% citing fake emails impersonating their brand. This comes despite a decline in the rate of suspected digital fraud[2] for attempted transactions where the consumer was in Canada. According to TransUnion’s global intelligence network, this fell from 5.4% in H1 2024 to 4.2% in H1 2025. This is higher than the overall global rate that dropped from 4.8% to 3.8% during that period. The study highlights the technologies Canadian organizations consider most effective in combating fraud, including identity verification, device reputation, and behavioral biometrics.

“The overall decline in suspected digital fraud rates is encouraging, but Canadian businesses continue to report significant financial losses,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada. “While both Canadian consumers and businesses are benefiting by enhanced security measures and increased awareness of what fraud looks like, vigilance remains the first line of defense to stop a fraudster in their tracks. As security measures evolve, so do the tactics fraudsters use. Even the smallest improvement in fraud detection can significantly reduce the risk of fraud-related losses.”

Major Business Losses Driven by Scams and Synthetic Identity Fraud

Scams and authorized fraud (schemes designed to trick a person into giving up something of value, such as account access or personal information) is a leading cause of business losses in Canada according to the survey of business leaders, accounting for 29% of reported losses. However, another fraud type is rising: Synthetic identity fraud (which involves using a combination of real and fabricated personal information to create a fake identity) has skyrocketed to 26% of total fraud losses according to the survey, up from 18% in 2024. This marks the largest YoY increase of any fraud type in Canada, surpassing the percentage in all other markets surveyed.

Other prominent causes of reported fraud losses include:

• Account takeover (unauthorized individuals taking over someone’s online account, i.e., bank, social media, email, without their permission) – 16%
• First-party fraud (identity misrepresentation or falsifying information for the purpose of financial gain) – 15%
• Third-party fraud (the use of stolen identity to open an account) – 13%

Canadian Business Leaders Highlight the Fraud Mitigation Tactics They Find Most Effective

Canadian business leaders report relying heavily on a mix of technology tools to help mitigate fraud, balancing the need for security while also looking to minimize the impact on customer friction.

The fraud mitigation tactics found to be most effective by Canadian business leaders include:

• Identity verification (confirming authenticity of consumer-provided information): 53%
• Device reputation (identifies a device using a combination of attributes provided by the device configuration; reputation identifies any fraud history associated with the device): 46%
• Email reputation (email attributes that may signal fraud such as validity, how long in use, how active, where seen on the internet): 42%
• Behavioral biometrics (identifies physical and behavioral interaction patterns typically associated with fraud, i.e., typing behavior): 42%
• IP intelligence (the use of internet protocol (IP) addresses to detect cyber threats or other suspicious activity): 40%
• Synthetic identity detection (data analysis to flag the potential that an identity is synthetic): 40%
• Phone number reputation (phone number attributes that may signal fraud such as type of phone, fraud history, identity linked to it): 39%

“Fraud mitigation measures are essential to ensuring that Canadians are confidently able to transact online,” added Boudreau. “New and evolving sophisticated forms of fraud are, sadly, a reality in today’s digitally connected world, and staying ahead requires an industry-wide approach leveraging the right mix of advanced tools and collaboration.”

Online Communities Increasingly Targeted by Fraudsters, Putting Canadians at Risk

Online communities like forums and dating apps saw the biggest increase in the number of suspected digital fraud attempts across all industries analyzed in H1 2025 for transactions where the consumer was in Canada, rising 68% year-over-year to a rate of 11.4%. Gambling (online betting sites) followed closely, with a suspected digital fraud attempt rate in Canada of 10.9% and a 16% year-over-year volume increase.

This shows how fraudsters are increasingly exploiting socially driven platforms, where trust and engagement are high. In contrast, traditional sectors such as financial services (2.1% H1 2025 suspected digital fraud rate in Canada with the volume of suspected digital fraud decreasing 40% YoY) and insurance (2% rate, volume decreasing 27%) have seen significant declines in the number of suspected digital fraud attempts. This could largely be due to stronger security protocols and more robust identity verification systems in these sectors.

Source: TransUnion global intelligence network

Canadians Continue to Have High Fraud Awareness, but Many Don’t Know Which Actions to Take

A separate survey of 982 Canadian consumers found that while 46% said they were targeted with email, online, phone call or text messaging fraud attempts from February to May 2025, only 6% reported falling victim, slightly below the global average of 9%. This indicates that Canadians continue to have a high level of awareness for spotting fraud attempts. However, that same survey found many Canadians are not taking steps to mitigate fraud concerns. The Q2 2025 Consumer Pulse Report revealed that nearly four in ten (37%) said they took no action in the last 60 days due to cybersecurity concerns. Many of these individuals (44%) said they didn’t do so because they didn’t know which actions to take.

“When someone falls victim to digital fraud, it’s important to take the necessary steps to mitigate any losses and prevent additional fraud from occurring,” added Boudreau. “Reporting suspected fraud to your bank or credit card company could help lessen the personal impact of the fraud. Additionally, taking proactive measures like changing passwords on all online accounts is essential to preventing fraudsters from accessing any additional data for funds. Finally, consumers should also notify credit bureaus when they suspect they have been a victim of fraud in order to have a fraud alert placed on their file.”

TransUnion came to its conclusions about digital fraud and data breaches based on intelligence from its array of TransUnion fraud prevention solutions. To learn more about how TransUnion fraud prevention solutions can help businesses avoid fraud and prevent fraud losses, click here.

Specific country and regional data in the report includes the United States, Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom and Zambia. Download the TransUnion H2 2025 Update to the Top Fraud Trends Report for more information and insights about the global fraud trends.

About TransUnion® (NYSE: TRU) 

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@omc.com

Telephone: +1 647-772-0969

[1] The first half or H1 is from January 1 to June 30

[2] The rate or percentage of suspected digital fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represents every country worldwide and not just the select countries and regions.ge-market-trends-risks-and-opportunities

• Inflation continues to be a key driver of the growth in consumer balances over the last three years, with average non-mortgage balances rising 10% since 2022
• Home affordability remains a challenge as average new mortgage sizes climbed 6.9% year-over-year, driven by renewed housing demand
• Regional disparities in cost of living and wage growth contributed to varying delinquency trends across Canadian provinces; Alberta saw the highest level of serious delinquency (90+ days past due), rising 11 basis points to 2.29%

New data from TransUnion shows that total Canadian consumer credit balances reached $2.52 trillion in Q2 2025, up 4.4% year-over-year (YoY) according to TransUnion’s Q2 2025 Credit Industry Insights Report (CIIR). That marks a 15% increase since Q1 2022, which aligns with the onset of rising inflation rates in Canada. Once inflation is factored in,[1] however, the actual increase was just 3% (or $0.08 trillion), meaning that while debt levels have climbed, real growth in what Canadians owe was more modest than it appears.

While the average consumer total balance increased by 7% from Q1 2022 to Q2 2025, non-mortgage debt declined by 10%, a sign that rising mortgage costs are taking up more financial space in household budgets. The impact isn’t felt equally: when adjusted for inflation, Canadians in the prime and above tiers saw the largest declines in their balances, with the super prime tier dropping nearly 33%. In contrast, subprime consumers saw their inflation-adjusted average balances grow by 15%, highlighting that rising costs are hitting lower-income households the hardest.

“Subprime consumers are more likely to feel the impact of higher costs of living and may choose to take on additional debt, such as credit card balances, to help cover the costs of goods and services,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada. “For other risk tiers of borrowers, their card balance growth has been less than the rate of inflation, indicating that these consumers are less reliant on credit cards to maintain purchasing power.”

There continues to be regional disparity in non-mortgage debt levels, with P.E.I. and B.C. continuing to report the highest average debt levels, while Quebec and Manitoba remain at the bottom. Although the gap between the highest debt provinces and the lowest isn’t wide, that difference could potentially impact delinquency rates in higher debt provinces, especially during economic downturns.

Improved Economic Conditions Fuel Mortgage Market Growth

Canada’s housing market is showing early signs of a rebound, driven by lower interest rates and renewed demand from buyers who were previously priced out of the market. Mortgage originations (new mortgages) surged 51% YoY in Q1 2025, reaching $82.6 billion in new volume. Despite broader economic uncertainty, market activity has picked up, driven by falling rates and regulatory changes introduced in 2024.

Millennials, many of whom are first-time home buyers, drove housing demand, accounting for 41% of all new mortgages. Gen Z, while still a smaller share at 8%, was the fastest growing group, with 66% YoY origination growth. As affordability improves, more buyers may enter the market, but rising home prices may require larger down payments and/or force some to accept longer loan terms and higher cumulative interest costs over the life of their mortgage in order to manage monthly payment amounts.

The average new mortgage loan amount rose 6.9% YoY to $368,432, underscoring the ongoing affordability challenges facing homebuyers. Both Ontario and British Columbia saw average new mortgage loan sizes above the national average, driven largely by persistently high prices in Toronto and Vancouver, Canada’s most expensive housing markets.

Additionally, more than two million Canadian mortgages are set to renew between 2025 and 2026, many of which were originally secured at ultra-low interest rates near 1%.[2] As these loans reset, borrowers will likely face significantly higher monthly payments, with the latest data showing the average monthly payment up 4.7%, just over $100 per month, for the average consumer in Q2 2025.

Consumer-level serious mortgage delinquency rates (60 or more days past due) rose again in Q2 2025 to 0.27%, up 3 bps from prior year. However, the overall delinquency rate continues to remain low by historical comparisons. 

“Many homeowners have some flexibility to temper increases in their monthly mortgage payment, whether through extended amortization periods, refinancing or pre-paying,” said Fabian. “Canadian lenders remain in a very strong capital position to support consumers through short periods of potential hardship.”

Slight Rise in Serious Delinquencies with Noticeable Regional Variances

The overall consumer-level serious delinquency rate (90 days or more delinquent on any product in wallet) has grown slightly, up 4 basis points to 1.77%. This level is consistent with those observed prior to the pandemic. Given the increase in credit activity and participation in Canada, this corresponding increase in delinquency is expected.

Differences in cost of living and wage growth across provinces have a significant impact on resilience, which varies by region. Alberta saw the highest level of serious consumer delinquency rate in Q2 2025, up 11 basis points from prior year to 2.29%. Quebec remained the least delinquent province overall; however, it saw a 3-basis point increase in delinquency YoY, potentially driven in part by elevated unemployment. Notably, six provinces saw decreases in delinquencies over the past year.

“Despite encouraging signs of economic recovery and easing inflation, the Canadian credit market remains fragile,” Fabian said. “Financial institutions must remain vigilant, particularly as mortgage renewals accelerate and regional economic pressures mount. Lenders would be prudent to adopt proactive risk management strategies and support consumers through this transitional period.”

Consumer Credit Index Continues to Decline Amid Economic Uncertainty

In Q2 2025, Canada's Consumer Credit Industry Index (CII) declined by 1.4 points from the previous quarter to 98.8, marking a 6-point drop YoY. This slide reflects softening consumer spending amid rising cost-of-living pressures and subdued credit demand. Higher delinquency rates and slower repayment activity point to ongoing financial stress among households, while broader macroeconomic uncertainty is eroding consumer confidence and purchasing power. The decline in the CII underscores the need for close monitoring of credit risk and consumer resilience as the Canadian economy navigates a challenging post-pandemic recovery phase.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.  

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

[1] 12% inflation between Q1 2022 and Q2 2025 as calculated as the cumulative Consumer Price Index increase as measured by Statistics Canada.

[2] Canada Mortgage and Housing Corporation. 2025, June 7. Canada’s Mortgage Market: Trends, Risks and Opportunities. https://www.cmhc-schl.gc.ca/observer/2025/canada-mortgage-market-trends-risks-and-opportunities

• 44% of Canadians surveyed say they plan to cut discretionary spending.
• Among Canadians who said they don’t anticipate being able to pay all their bills and loans in full, 68% said it’s their credit card payments they won’t be able to make.
• While 46% of Canadians said they were targeted by fraud in the last three months, 37% reported taking no action in response to cybersecurity concerns.
• Over half (53%) of Gen X Canadians feel their financial situation is worse than planned, compared to only 30% of Gen Z.

As Canadians continue to navigate economic uncertainty, many are adjusting their financial behaviours in response to affordability pressures and rising costs. According to TransUnion’s (NYSE: TRU) Q2 2025 Canada Consumer Pulse Study[1], 51% of Canadians surveyed had a recession in their top three household financial concerns over the next six months, and nearly half of all surveyed (44%) plan to reduce discretionary spending in the next three months. Canadians are also shifting to thriftier shopping options – 63% said they look for sales and discounts more frequently, 40% shop more frequently at more affordable retailers, and 31% use more coupons. These changes come at a time when over a quarter (27%) of Canadians say they won’t be able to pay all their current bills and loans in full and millions of Canadians’ mortgage payments face potential repayment increases.

Among Canadians who said they won’t be able to pay of their bills, 68% reported they won’t be able to pay off their total credit card payments. This could be due to these consumers prioritizing other credit payments, like mortgages. Despite the overall inflation rate returning to the Bank of Canada’s target, 96% of Canadians remain concerned about the current rate of inflation and the vast majority (83%) of all surveyed Canadian consumers had inflation in their top three household financial concerns over the next six months.

“Canadians are navigating a challenging financial landscape, with many adjusting their spending and prioritizing bill payments in response to rising costs and economic uncertainty,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada. “Our latest Consumer Pulse data shows that affordability concerns are top of mind, and many are taking proactive steps to stay financially resilient.”

Mortgage Renewal Stress Drives Payment Shock and Shifts in Financial Priorities

Additional research from TransUnion Canada shows that mortgage renewal stress is a key factor contributing to financial strain. As Canadians who purchased homes during the COVID-19 pandemic – when interest rates were at historic lows – begin renewing their mortgages, many are facing significantly higher payments, resulting in payment shock. This financial pressure is particularly evident among Gen X Canadians, with over half (53%) saying in the latest Consumer Pulse Study that their financial situation is worse than planned, the highest by far than any other generation surveyed.

According to The Bank of Canada’s Financial Stability Report – 2025, around 60% of Canadians’ mortgages are up for renewal in 2025 or 2026. TransUnion’s analysis shows that many of those who purchased homes during the COVID-19 pandemic – when interest rates were at historic lows – are now facing higher interest rates as they begin renewing their mortgages. The Consumer Pulse data suggests that this is leading to payment shock, a significant and often expected increase in debt payments.

TransUnion analysis shows that since March 2022, over two million consumers have experienced an increase in monthly mortgage payments, with the average monthly mortgage payment for these consumers increasing by 25% in the last three years from $1,527 in March 2022 to $1,908 in March 2025.

Consumers whose monthly mortgage payments have increased by 25% or more are also accumulating greater credit card debt – more than double the rate of those who did not have an increase in their mortgage payment. Overall, Canadians are prioritizing making mortgage payments over other credit obligations, which is leading to higher delinquencies.

Uncertainty and continued high interest rates have most likely negatively impacted mortgage demand. Nearly three-quarters (72%) of Canadians indicated in the latest Consumer Pulse Study that they are not considering purchasing a home in the next year. This may point to many consumers may be continuing to hold out for interest rate relief from the Bank of Canada.

“We’re at a critical moment where many Canadians who took on mortgages during the pandemic—when interest rates were at historic lows—are now facing rising payments and affordability pressures,” said Fabian. “With nearly CA$1.8 trillion in outstanding mortgage balances and 60% of mortgage holders up for renewal by 2026, millions could experience payment shock. Yet, despite these challenges, Canadians continue to demonstrate financial resilience—adapting their spending habits, prioritizing bill payments, and taking steps to help recession-proof their finances.”

Consumers Wary of Carrying Debt and Shift Shopping Habits as Economic Volatility Persists

Economic volatility has remained top of mind for many Canadians as over half (51%) in the Q2 2025 Consumer Pulse Study cite a recession as one of their top three financial concerns in the next six months. This uncertainty has continued to limit credit participation among Canadians of all generations, with nearly a third (30%) of all surveyed saying they are uncomfortable with owning credit products.

In effort to balance their household budgets and remain financially resilient, 74% of Canadians who said we’re currently in a recession or will be in one by the end of Q2 reported they plan on reducing their spending in order to prepare for one. Among all Canadians surveyed, many said they adjusted their shopping habits in the last three months, including:

• Looking more frequently for sales and discounts (63%)
• Buying more generic or store brands (41%)
• Shopping more frequently at affordable retailers (40%)
• Shopping at retailers with loyalty programs more often (33%)
• Using more coupons (31%)
• Taking advantage of credit card offers for special discounts more often (16%)

To curb spending, Canadians are making various cutbacks, such as digital subscriptions, with 25% reporting they cancelled a subscription or membership in the past three months.

Fraud Awareness Remains High, but Nearly 4 in 10 Canadians are Taking No Action

Canadians remain aware of fraud risks and nearly half (46%) of those TransUnion surveyed reported being targeted by email, online, phone call or text message fraud attempts in the past three months. Despite these risks, the Consumer Pulse data indicates that over a third (37%) of Canadians said they took no action in the last 60 days in response to cybersecurity concerns. Of these individuals, 44% said they did nothing because they were unsure of what actions to take.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

[1] TransUnion’s Consumer Pulse Survey of 982 adults was conducted May 5–18, 2025

According to a TransUnion consumer survey in Canada, 70% of respondents said they’d be likely to answer calls from businesses with company name and logo; 61% said they didn’t answer a call due to safety and fraud concerns   

TELUS (T-TSX; NYSE: TU) is partnering with TransUnion (NYSE: TRU) to implement Branded Call Display (BCD), a solution that enables participating businesses to showcase their identity on incoming calls to TELUS mobility subscribers. BCD will provide TELUS customers with rich call content, including business name, logo and reason for the call on the mobile display to identify incoming callers. When combined with end-to-end call authentication, secure branded calling helps protect consumers from fraud, while helping businesses reach more customers and improve the customer experience.

“Canadians need more protection against fraud and unwanted calls,” said Juan Sebastian D’Achiardi, Regional President of TransUnion Canada. “We’re excited to partner with TELUS to implement secure branded calling. This solution will help protect Canadian consumers, reducing fraud and giving them confidence to answer the phone, so they don’t miss legitimate calls. For businesses, Branded Call Display will enable them to restore trust in the phone channel, reach more customers, enhance engagement and protect them from call spoofing and fraud.”

"In today's digital world, Canadians deserve confidence in who's calling them," said Kal Amery, Vice President, Global Carrier Solutions at TELUS. "By implementing TransUnion Branded Call Display, we're not just displaying caller information, we're verifying business identity in real-time, helping our customers avoid fraud while ensuring they don't miss important calls from legitimate businesses. This technology represents a significant step forward in our ongoing commitment to customer security."

The partnership builds upon TELUS and TransUnion's successful collaboration history, including their groundbreaking work on the first international calls authenticated by STIR/SHAKEN protocols. This new solution addresses a critical need in the Canadian market, where recent TransUnion research reveals:

●      70% of consumers would likely answer calls from businesses displaying verified company names and logos

●      61% have missed legitimate calls due to fraud concerns

●      Canadians prefer phone calls for critical communications:

• Personal, including healthcare (62 %)
• Urgent circumstances, including natural disasters (55 %)
• High-value decisions, such as financial investments (52 %)

Learn more about TELUS Partner Solutions visit telus.com/partner-solutions and TransUnion Branded Call Display.

About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

• New-to-credit Canadians led to greater credit participation, accounting for $2.6 billion in new credit balances in Q1 2025
• Subprime consumers are almost twice as likely to go delinquent within 12 months of opening new credit cards, compared to their pre-pandemic cohorts
• Growing concerns around Canadian consumers experiencing economic strain

The first quarter of 2025 saw mixed outcomes in the Canadian credit market, according to TransUnion’s Q1 2025 Credit Industry Insights Report (CIIR). Growth was fuelled by increased borrowing from young Canadians and newcomers. Consumer balances for non-mortgage products rose across most products, driven primarily by below prime consumers. Subprime consumers continued to struggle as their delinquency rates rose at significantly higher rates than prime and above consumers. Regional differences in cost of living and economic conditions also led to varying delinquency trends across provinces.

Gen Z Consumers Accelerated Overall Credit Participation with 30.6% Year-Over-Year Growth in New Balances

After the decline in interest rates and inflation in late 2024, Canadians' total outstanding balances across all credit products grew by 4.7% year-over-year (YoY) and total outstanding credit debt reached $2.5 trillion in Q1 2025. Continued credit expansion, propelled by younger consumers, including new Canadians entering the credit market, was a key driver of this growth. 

As Gen Z consumers continued to participate in the credit market, outstanding balances within this generation have grown 30.6% from the prior year, contributing $12 billion or 10.3% of total new balance growth. Canadian newcomers also represent a significant portion of the growing credit market, driving $2.6 billion in new credit balances, a 6.3% increase YoY.

“As a growing share of Gen Z consumers actively engage with credit, lenders face a pivotal opportunity to shape lifelong financial relationships,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada. “This generation values digital-first experiences, personalized education and brands that align with their values. Prioritizing credit education, fostering early loyalty and offering seamless, mobile-friendly solutions will be key to staying relevant and building trust with these new-to-market borrowers.”

Non-Mortgage Balances Continue to Grow, Driven by Below Prime Consumers

Non-mortgage debt grew 2.4% as consumer balances continued to increase across most products. However, total non-mortgage debt did not grow equally across all risk tiers. Below prime average consumer balances grew 4.4%, with subprime consumers contributing the highest increase at 6.3%, while prime plus and super prime consumer balances remained mostly flat.

The YoY growth in average balances among below prime consumers may be due to these consumers utilizing more credit to augment disposable income in the face of elevated prices. This trend was seen particularly with the growth in credit card and personal loan balances, as these are traditionally the products used by consumers for liquidity. Below prime consumer average balances across these products grew at a faster rate than overall borrower balance growth during this period.

Additionally, the data shows regional disparities in the YoY growth rates of non-mortgage debt, although province rankings did not change from the previous quarter. P.E.I. and Newfoundland had the highest average debt per borrower, while Quebec and Manitoba had the lowest. While the gap between the highest and lowest average debt balances across provinces may not appear substantial, even modest differences in average debt per consumer can significantly influence delinquency rates. Consumers in provinces with higher average debt levels may be more susceptible to increases in interest rates as well as higher everyday living costs, making them more vulnerable to financial strain and increasing the likelihood of delinquency, particularly during economic downturns.

“The rise in balances from higher-risk and more vulnerable credit consumers signals a critical moment for lenders to reassess risk strategies and engagement models. Proactive credit monitoring, tailored financial support and early intervention tools can mitigate potential delinquencies while still maintaining consumer access to credit,” said Fabian. “At the same time, consumers should continue to build financial resilience by understanding their credit profiles, seeking guidance when needed and using credit responsibly. Empowered, informed borrowers are key to a healthier credit ecosystem.”

Lower Canada Consumer Credit Index Reflects Weakening Market Conditions

Economic uncertainty has recently muted credit demand while supply remains strong. Additionally, uncertainty has shifted some credit behaviours as consumers balances have increased while credit performance has remained relatively stable from prior year, driving the Canada Consumer Credit Index to 100.3, down almost 6 points from the prior year.

Differing Impact of Economic Volatility Across Risk Tiers

A widening financial divide is emerging among credit consumers across Canada. While recent improvements in inflation and interest rates have provided relief for some, enabling them to reduce debt and strengthen their financial positions, others continue to face significant challenges. These consumers are still grappling with the prolonged effects of past economic volatility, highlighting an uneven recovery and growing disparity in financial resilience.

Overall consumer-level serious delinquency (consumers 60 days or more delinquent on any credit product) was up 11 basis points YoY to 2.71% in Q1 2025. This increase was driven in part by the recent growth in new-to-credit consumers, who generally carry higher risk in their early years due to their limited credit experience.  Even with the recent increase, the current levels of delinquency are similar to those seen prior to the pandemic.

Subprime consumers have become more likely to experience delinquency soon after opening a new product, with the delinquency rate within the first six months of opening a new credit account doubling between 2020 and 2024. This is particularly evident for below prime credit card and personal loans, where consumers may be more sensitive to interest rates. Subprime consumers that opened a credit card in 2023 or 2024 were 1.7x–2.0x as likely to go delinquent within the first 12 months of holding that card than those who opened a card in 2020. These findings further demonstrate the increased vulnerability that subprime borrowers have to macroeconomic factors such as higher interest rates and increased cost of living.

Geography is also playing a role in the vulnerability or resilience of consumers. A 16 basis point YoY increase in serious consumer delinquencies led to Alberta continuing to have the highest rate across all provinces in Q1 2025, driven by the volatility in oil and gas prices that play a large role in Alberta’s economy. While Quebec remained the province with the lowest rate of delinquencies, it had a seven basis point increase YoY.

“We’ve seen volatility in delinquency rates attributed to a mix of regional economic pressures and demographic factors. Regional variations in both cost of living as well as wage growth, along with pressure from macro-economic cycles, disproportionately impact specific regions, and hence some provinces have had more volatile consumer credit performance,” Fabian said. “These findings underscore the importance of regionally tailored lending policies and support systems to address the unique challenges faced by those households. Additionally, consumers in more vulnerable areas should stay vigilant in keeping current on payments, monitoring credit and building emergency savings.”

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.  

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

Gaming, Government and Communities were Most Targeted Sectors by Digital Fraudsters in Canada

Key Study Findings:

• 39% of Canadians surveyed said fraud concerns is the top reason why they abandon online shopping carts.
• 46% prioritize security of personal data as the #1 quality (more than cost savings or quality of goods and services) when deciding what online company to do business with.
• 13% report taking no action when discovering they became a victim of fraud.
• 43% who said they were targeted by fraud involved phishing.
• 11% of attempted digital gaming transactions (including online betting, poker, etc.) where consumer was in Canada were suspected of digital fraud in 2024.

According to the newly-released TransUnion (NYSE: TRU) H1 2025 Update to the State of Omnichannel Fraud Report, more than half (56%) of 1,000 Canadians surveyed said they were targeted by fraudsters through email, online, phone call or text messaging channels from August to December 2024. Nearly one in 10 (9%) of those reporting being targeted said they fell victim to it. Furthermore, when surveyed from Nov. 21 to Dec. 6, 2024, nearly one-fifth of Canadians (17%) said they lost money due to email, online, phone call or text messaging in the past year. The number of Canadians targeted and who fell victim may be significantly higher, but people may be unaware they were targeted.

“Our research indicates that many Canadians don’t take the proper steps if they have fallen victim to Digital Fraud” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada. “These steps should include reporting the suspected fraud to your bank or credit card company to freeze accounts and changing all passwords. Consumers should also notify credit bureaus, including TransUnion, to place a fraud alert on their file, as well as report the incident to the Canadian Anti-Fraud Centre. If personal information was compromised or large sums of money were involved, it should be reported to the local police as well.”

Fraud concerns have major influence on who Canadians choose to do business with online.

When engaging online, concerns around security and fraud has a significant impact on Canadians’ preferences and behaviours, including when making purchases or choosing who to do business with.

According to the survey that was part of TransUnion’s State of Omnichannel Fraud Report:

• 91% of Canadians said having confidence that their personal data will not be compromised is important when choosing who to transact with online.  
• 46% said security of personal data is the number one consideration when deciding what company to do business with online, significantly higher than prioritizing cost savings (25%) and quality of goods and services (19%).  
• 70% said fraud concerns would cause them not to return to a website.
• 31% said they have switched doing online transaction to another website due to fraud or security concerns.
• 39% said fraud and/or security concerns is a top reason to abandon their online shopping cart. Conversely, 16% said having too many security steps is a top reason to abandon their online cart.
• 35% said they have abandoned an online application for a financial or insurance product before completing it.

While many Canadians took various actions after discovering they had become a victim of fraud, more than 1 in 10 (13%) reported no action at all.

Among Canadians who said they fell victim to email, online, phone call or text messaging fraud from August to December 2024, they reported taking the following actions:

• 51% contacted relevant impacted companies such as credit card issuers, retailers, etc.
• 48% placed a freeze on their credit.
• 29% placed a fraud alert on their credit report.
• 16% called the police.
• 15% contacted a company that compiles and provides credit reports.
• 13% said they took no action.

While Canadians were targeted by a mix of fraud schemes, phishing was the most reported kind.

Among those who said they were targeted by email, online, phone call or text messaging fraud in the second half of last year, the most common reported method by them was phishing (43%). Phishing is when a fraudster uses an email, website, social post or QR code that appears to legitimate meant to trick a consumer into sharing personal information. Other common fraud attempt methods reported by those who said they were targeted include:

• Smishing (40%), where fraudulent text messages try to trick recipients into revealing data.
• Vishing (35%), where fraudulent phone calls try to induce recipients into revealing personal information.
• Third-party seller scams on legitimate online retail websites (19%).

Gaming, Government and Communities Were the Top 3 Industries Targeted by Digital Fraudsters in Canada.

Gaming (including online betting, poker, etc.) had the highest rate of suspected digital fraud[1] attempts where the consumer or fraudster was in Canada when transacting. Over 11% of all attempted digital gaming-related transactions were suspected of fraud in 2024, an 80% increase from 2023. This was followed by government (9%), communities which includes online dating sites and forums (7%) and video gaming (6%).

The logistics industry, which has seen growth in shipping fraud (often perpetrated by organized crime rings), saw the greatest suspected digital fraud attempt rate and volume growth among industries analyzed, up 203% and 180% respectively for transactions from Canada YoY compared to 2023. However, the suspected digital fraud attempt rate for that industry was a relatively modest 2% in 2024. Conversely, telecommunications saw the biggest YoY suspected digital fraud attempt rate and volume decrease from 2024 (-88% and -86%) from Canada in that time period.

Canadian Sectors that Experienced Shifts in YoY Suspected Digital Fraud in Many Cases Differed from Global Changes:  

Source: TransUnion TruValidate™

“While cybercriminals will attack at any time using any channel, they appear to focus on channels most popular in the regions they are targeting,” added Boudreau. “Emails are widely used in Canadians’ personal and business lives, while many use their mobile phones for everything from work calls to ordering groceries and organizing their families’ lives. Fraudsters view these channels as the most likely way that they’ll be able to trick people into sharing personal information, which is why all Canadians need to be vigilant about responding to messages of any kind on their digital platforms.”

TransUnion came to its conclusions about digital fraud based on intelligence from TransUnion TruValidate.

Specific country and regional data in the report includes Canada, Botswana, Brazil, Chile, Colombia, the Dominican Republic, Guatemala, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States and Zambia. Download the TransUnion H1 2025 Update to the State of Omnichannel Fraud Report for more information and insights about the global fraud trends.

About TransUnion® (NYSE: TRU) 

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

[1] The rate or percentage of suspected digital fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represents every country worldwide and not just the select countries and regions.

TransUnion® (NYSE:TRU) Canada is helping expand credit access for new Canadians and those new to the credit market by providing a broader and more comprehensive view of a person’s payment behaviour and creditworthiness with TruVision® Trended Risk Score. The TruVision Trended Risk Score leverages new algorithms and attributes that provide deeper insights on consumers, utilizing data that captures how consumer credit spending and payment patterns have evolved since the pandemic. For New-to-Credit (NTC)[1] consumers, TruVision Trended Risk Score leverages the power of signals early in their credit tenure to better predict future risk, giving lenders the insights they need to more confidently offer credit and grow with new consumers.

“New Canadians and young consumers represent a significant portion of Canada’s population and economic power. They are actively working to build their credit profile and access to credit. With TruVision Trended Risk Score, consumers will be able to build their credit profile quicker and gain access to more credit opportunities,” said Juan Sebastian D’Achiardi, regional president of TransUnion Canada. “By offering lenders a more holistic view of consumers, they will now have better access to behavioural insights and information, increasing their ability to more confidently offer a wider range of products and services.”

According to Statistics Canada, international migration, including permanent and temporary immigration, continues to drive population growth in Canada, accounting for 92% of all growth in the third quarter of 2024[2]. In 2024, NTC consumers accounted for 28% of new credit cards opened, and 22% of all credit products opened, with new to Canada consumers estimated to account for more than half of that volume.

Gen Z Canadians, born between 1997 and 2012, remain the fastest growing segment in credit card usage, with an 18% year-over-year (YoY) growth rate in balances, compared to a 4% YoY growth rate among other generations. Gen Z consumers have accumulated $142 billion in overall credit balances as of December 2024, representing a 29.5% YoY increase, significantly outpacing the overall 4.5% balance growth rate.                          

While this generation represents a tremendous growth opportunity for lenders, these consumers exhibit higher risk, with a 0.57% delinquency rate (90 days or more days past due), compared to an average of 0.28% across other generations as of Q4 2024. Lenders can still turn to this generation to increase lending and grow by employing effective tools for credit decisioning to manage risk effectively.

“While navigating an uncertain macroeconomic environment and turbulent market conditions, lenders can now modernize their credit strategies and more confidently grow their portfolios by extending credit to young Canadians, new immigrants, and other Canadians seeking to expand their credit portfolio,” said Pamela Dodaro, chief product officer at TransUnion Canada. “Those that explore innovative ways to monitor rapid changes in consumers’ financial health will be better positioned to capture new and growing consumer segments.”

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

[1] A New-to-Credit consumer has no prior history on their credit file.

[2] Statistics Canada, The Daily — Canada's population estimates, third quarter 2024, 2024-12-17. This does not constitute an endorsement by Statistics Canada of this product.

• Despite stabilization of macroeconomic conditions, total consumer debt and delinquency rates continue to rise
• Gen Z consumers continue to drive credit market activity
• Credit card balances hit new milestone of $124 billion and delinquency rates rise even as average monthly card spend declines

Total consumer debt in Canada hit a historic high of $2.5 trillion as outstanding balances across all credit products grew by 4.5% year-over-year (YoY) in Q4 2024, according to TransUnion’s Q4 2024 Credit Industry Insights Report (CIIR). Balances grew due to a combination of increases in both mortgage debt and non-mortgage debt. Non-mortgage debt increased 5.8% YoY with balances continuing to rise across revolving products in Q4 2024. Line of credit balances grew 4.2%, while credit card balances continued a more rapid pace of growth, increasing 9.2%. Although the rate of growth has been slowing, the overall increase remains significant.

Credit participation grew by 2.5% YoY, with 32.3 million Canadians holding at least one open credit product, a trend fueled in part by the recent decline in interest rates and inflation. Millennial and Gen Z consumers were at the forefront of this increase, collectively holding $1.1 trillion in outstanding balances, a 10% rise YoY. Gen Z consumers were the fastest-growing segment, with a 29% increase in credit participation as they diversify their debt beyond credit card debt.

Canada Consumer Credit Index Hits Lowest Level Since 2021

The Canada Consumer Credit Index fell YoY to 99.8 in Q4 2024, its lowest December level since 2020. The decline indicates a deterioration in the overall health of the Canadian retail credit market, reflecting declining consumer behaviours and weakening market conditions. Although all elements of the index were lower than the prior years’ values, slowing balances, declining demand and continued increase in delinquency rates were the strongest drivers of the decline.

Credit Card Market Growth Slowing

Credit card balances continued to grow, marking 31 months of consecutive YoY balance growth. However, this growth has moderated in recent quarters, indicating a stabilization in the market may be expected in 2025.

Bankcard originations trended lower in recent quarters, though totals remained elevated in comparison to pre-2018 levels. The recent decline in origination totals was seen across most risk tiers, with subprime leading the decline, influenced by the decrease in new Canadians entering the market after a significant reduction in immigration volume.

In an effort to manage delinquency rates, lenders have become more conservative within their risk tier targets at origination. Overall, bankcard originations dropped by 3.7% YoY, with the largest decline led by subprime at 6.9% YoY, while prime and near prime consumers grew by 3.7% and 0.4% respectively. The risk mix of originated bankcard accounts and credit lines remains consistent with 2018 and 2019 levels, indicating market moderation, metric stabilization and reversion to more familiar business cycles.

Originations growth fell across all generations. Gen Z showed the least year-over-year impact, remaining relatively flat at a decline of only 0.1% from prior year as more young adults in this generation continue to enter the credit market each year. The remaining generations saw a significant drop off from prior years, as demand in these groups for additional credit may have waned as the economy improved.

Lower inflation in recent quarters, combined with continued employment resiliency for consumers, may be driving consumers towards an improved financial health, where they balance their monthly expenses and monthly budgets. Reduced lender appetite may also play a role in this slowdown, resulting in a decrease in new credit card originations. However, despite the slowing of originations, credit card balance growth remained strong, up 9% YoY, though below the previous year’s 13% growth. The growth fueled a new balance milestone of $124 billion in Q4 2024. This was driven by higher revolving balances as consumers paid down a smaller portion of their balances. Approximately 64% of outstanding balances were revolving in Q4 2024 (+157 bp YoY) indicating that consumers are increasingly carrying balances on their cards from month to month.

Average credit card debt per borrower hit $4,681 in Q4, but has also been slowing relative to prior years, with average debt per borrower rising 6.0% YoY in Q4 2024 as opposed to 7.2% the year prior. Prime and below risk segments are increasingly tapping into their available credit, highlighting potential pockets of growing financial needs and a greater dependence on revolving debt to cover daily expenses.

Despite positive economic indicators, including lower interest rates boosting home-related purchases, ongoing economic uncertainty, and high prices for goods and services have continued to weigh on consumer spending decisions. There has been a corresponding drop-off in average monthly card spend, which fell 2.6% from prior year. Overall pressure on consumers related to the higher costs of living and lower savings rates contributed to a rise in bankcard delinquency rates. Bankcard serious consumer-level delinquency levels, defined as 90 or more days past due (DPD), continued to climb higher to 0.93% in Q2 2024, up 9 bps YoY.    

“In an environment where new account growth is slowing, credit card issuers need to focus on optimizing account management strategies,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada. “Strengthening customer loyalty, fostering prudent balance growth and engaging younger consumers to enhance lifetime value are crucial. Equally important is vigilant monitoring for early warning signs of rising delinquencies.”

* Acquisition results are presented one quarter in arrears

Non-Bankcard Delinquencies Also Increase Despite Economic Improvements

The current economic landscape is unique in that, despite relatively stable employment, there has been a rise in consumer loan delinquency rates. Solid employment has been offset by high interest rates that have put pressure on consumer wallets.

Overall serious consumer delinquency continues to rise on a year-over-year basis, up 16 basis points to 1.83% and reaching a five-year high, back on par with the pre-pandemic levels. From a demographic perspective, Gen Z consumers are driving high delinquency rates with delinquencies up YoY 26 bps to 2.74% in Q4 2024. Gen Z credit consumers generally have lower risk scores as they are new to credit and have a shorter lending history. They may also be feeling a greater impact from inflation and the high cost of living, which may strain their budgets. Lenders will need to continue applying advanced analytics to grow and retain this segment, as Gen Z will remain a growing proportion of new credit consumers over the next few years and ultimately will become core credit consumers throughout their lifecycle.  

"As the Canadian credit market expands, Gen Z consumers present a significant growth opportunity for lenders, especially through tailored credit card offerings,” Fabian said. “Gen Z are educated and active credit users with a growing propensity to utilize credit throughout their lifecycle. Early management is crucial, as credit cards can be a valuable financial tool for Gen Z when managed responsibly. By implementing strategies such as education and regular credit monitoring, credit cards can become an asset rather than a financial burden for Gen Z consumers, creating loyalty to lenders who provide those services."

** All data is sourced from the TransUnion Canada consumer credit database.

About TransUnion^® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.  

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

• Household financial strains most felt among Gen X (51%), as this generation nears retirement.
• Housing prices of concern to 57%, with only 14% intending to take out a new mortgage in the next 12 months, and 15% considering refinancing their property.
• Millennials hold largest share of debt at $911 billion.
• Millennials most concerned about their ability to keep current with bills and loans, with 35% saying they’re not able to pay at least one in full.
• More than half of Canadians (63%) don’t expect household income to increase in next six months.

TransUnion’s Q4 2024 Consumer Pulse study* reveals that Canadians continue to feel pressure on their personal finances, with over a quarter (26%) of Canadians reporting that they anticipate not being able to pay at least one of their current bills and loans in full. This rate increases for Millennials, with 35% reporting that they anticipate not being able to make at least one of their debt payments in full. This demographic also has the largest share of consumers by age group in Canada’s credit market, holding 27% of credit accounts (debt related balances) and surpassing Baby Boomers for the first time. Despite concerns around their personal finances, more than 1 in 5 (22%) Canadians plan to take on additional credit or refinance existing credit in the next year – and of those, 43% anticipate applying for a new credit card.

This concern around making debt repayments comes despite 79% of respondents revealing that their income remained flat or increased in the past three months as well as further interest rate reductions from the Bank of Canada.

Many Canadians also continue to feel that their financial outlook is stagnant, with nearly six in 10 (59%) saying that their incomes remained the same in the last three months, and more than half (63%) saying that they don’t expect their household income to increase in the next six months.

Millennials** continue to hold the largest share of debt in the Canadian credit market at $911 billion – approximately 38% of all Canadian debt. This is likely due to shifts in life stage as Millennials are increasingly having children, buying homes and continuing to pay off existing debt.

“While economic indicators show that consumers are likely to enjoy some relief from their financial pressures in 2025, many are still navigating the challenges caused by the highest interest rates since 2001 we recently experienced,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada. “With more than half of households expecting their income to stay the same in the next 12 months, added liquidity created by anticipated further interest rate cuts should create some room to breathe, and fuel optimism for 2025.”

Other key findings of the study include:

Canadians continue to take on new debt despite repayment concerns

Despite concerns around their personal finances, nearly a quarter (22%) of Canadians stated that they intended to take on additional or refinance existing credit in the next year – and of those, 43% anticipate applying for a new credit card. This indicates that some consumers are seeking to have extra credit available to help offset cash flow shortages during tough financial times.  

The study found that consumers are choosing to take on more debt or refinance existing credit despite almost half (49%) expressing concern about the effect of interest rates on their ability to pay off loans, mortgage or credit. Additionally, 30% of consumers said that they’re uncomfortable having credit accounts like credit cards and loans.

Gen Z was the highest among generations who said they plan to apply for new or refinance existing credit within the next year at 34%. This comes as the total Canadian consumer credit debt reached a record $2.5 trillion in Q3 2024.

Reducing spending remains a priority as some Canadians take steps to protect themselves from recession

Less than half (44%) of Canadians didn’t think that the country would enter a recession before the end of 2024. However, among those who said we are in a recession or would be in one by the end of 2024, the most popular stated measures taken to prepare for one was reducing spending (71%), building up savings (36%) and paying down debt (33%).

As the Bank of Canada continues to reduce interest rates, the number of Canadians choosing to pay down their debt faster may increase as they see some relief on their monthly payments.

Home purchases take a back seat as interest rates and prices remain a concern

In the current high interest environment, over three quarters (76%) of Canadians said that they were unlikely to purchase a new home in the coming year – up from 72% in Q4 2023.

Of those who were considering buying a new home in the coming year, 59% (down from 63% in Q4 2023) said that rising home prices would deter them making a new home purchase (down from 63% in Q4 2023), followed by 44% who reported that rising interest rates would discourage them (down from 52% a year ago). Among those considering purchasing a new home in the next year, the generation who were the most concerned about rising housing prices was Gen X at 65%. The generation who cited lack of home availability the most was Gen Z at 40% (up from just 5% a year ago) and rising interest rates was cited the most by Millennials at 51%.

Discretionary spending cuts - a tool to ease economic pressure

As Canadians continue to navigate a tough economic environment, many report reducing discretionary spending to possibly open more cash flow for essentials like groceries and gas.

Among Canadians who said they cut back on discretionary spending like dining out, travel and entertainment in the last three months, these are the types of spending they reported decreasing in that time:

• Dining out (84%)
• Clothing and accessories (59%)
• Food delivery / ordering in (58%)
• Entertainment and media (50%)
• Large purchases (furniture, appliances, cars, etc.) (47%)
• Travel (48%)
• Home improvement (33%)
• Electronics (30%)
• Toys and hobbies (28%)

*The most recent Consumer Pulse study includes a survey of 1,000 Canadian adult consumers conducted Sept 25 – Oct 6, 2024.

**Generations are defined in this research as follows: Gen Z, 18–26 years old; Millennials, 27–42 years old; Gen X, 43–58 years old; and Baby Boomers, age 59 and above. 

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

The analysis reviewed attempted ecommerce transactions from across the globe and found that 4.6% of transactions worldwide were suspected to be Digital Fraud over this time period – colloquially known as the Cyber Five. Based on proprietary insights from TransUnion’s global intelligence network, TransUnion found that the global suspected Digital Fraud rate was down from 6.0% during the same period in 2023.

The study determined that the average volume of suspected Digital Fraud attempts on any given day during that holiday period globally was 30.2% lower than it was in 2023 and 5.9% lower than during the rest of the year (1 January 2024 to 27 November 2024).

The Percentage of Suspected Ecommerce Fraud during the Cyber Five vs. Overall

Source: TransUnion TruValidate^®

“A later US Black Friday along with the general lengthening of the holiday shopping season were factors in the overall decline in transactions and the concurrent downtick in suspected Digital Fraud during the Cyber Five. The Government of Canada’s announcement of upcoming tax relief on some popular holiday items may have also influenced some consumers to delay their holiday shopping until these tax breaks kick in on December 14,” said Patrick Boudreau, head of identity management and fraud systems at TransUnion Canada. “For online retailers, this speaks to the need to maintain diligence year-round. For the remainder of this holiday shopping season, and beyond, online retailers must continue to implement tools that maintain a friction-right experience, wherein both business and consumer are protected without major disruption.”

The highest percentage of suspected Digital Fraud globally during the Cyber Five occurred on Thursday 28 November with 5.3% of all attempted digital retail transactions on that day suspected to be Digital Fraud. Similar to global data, the suspected Digital Fraud attempt rate during the holiday period was the highest on 28 November for attempted transactions where the consumer was in Canada.

The Suspected Ecommerce Fraud Rate Varies for Each Day of the 2024 Holiday Shopping Weekend

Source: TransUnion TruValidate^®

As part of this analysis, TransUnion also determined the top signals indicating risk of fraudulent ecommerce transactions during the holiday shopping season globally. This year, unusually high transaction volume from a single device and devices being newly associated with an account were among the leading indicators for potential fraud attempts.

Many Holiday Shoppers Remain Concerned About Digital Fraud

The increase in suspected Digital Fraud came as 54% of Canadian consumers indicated in the Q4 2024 Canada Consumer Pulse Survey, whose study will be released in the coming weeks, that they had been targeted by fraud scams in the preceding three months.

“The winter holidays are always hugely impactful to retailers’ bottom lines, and our recent survey indicates that consumers may be particularly eager to buy this holiday shopping season,” said Boudreau. “It’s as important as ever for retailers to equip themselves with the tools they need to detect fraud early. These tools can help minimize fraudulent transactions while at the same time protecting legitimate transactions. Retailers should seek to implement holistic fraud solutions that can help verify customer identity and authenticity as early as possible during a transaction.”  

TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate^®. The rate or percentage of suspected Digital Fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country and region when conducting a transaction. 

To find out how this data varies by select countries and more, TransUnion’s holiday fraud trends can be found here.

Learn more about how TransUnion^® helps individuals and families protect against identity theft here.

About TransUnion^® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

• Number of Canadians with access to credit and total outstanding consumer balances reached new records in the third quarter of 2024, mainly driven by Millennial and Gen Z consumers
• With an expectation of subsided inflation and lower interest rates, 2025 forecast projects growth in credit activity and improved performance

More Canadians borrowed and used credit in the third quarter of 2024, as interest rates and inflation continued to decline, pushing the total consumer credit debt to a record $2.5 trillion, a 4.1% year-over-year (YoY) increase, according to TransUnion’s Q3 2024 Credit Industry Insights Report (CIIR). The number of Canadians with at least one credit product rose to 32.2 million, a 3.1% increase YoY, and the number of Canadians with an outstanding balance also rose to 29.7 million, a 2.8% increase YoY.

Approximately 45% of the total household debt in Canada is held by Millennial and Gen Z consumers, who hold $1.1 trillion in outstanding balances. As more Gen Z consumers have entered the credit market, they have taken on more types of debt, making them the fastest growing segment of Canadians carrying an outstanding balance.

While the number of Canadians with access to credit increased across all risk tiers[1], subprime consumers had the largest increase, with 5.6% YoY growth in Q3 2024. This is primarily due to a portion of consumers who have struggled to make payments and have migrated into subprime from other risk tiers as their credit scores have dropped. While this riskier segment had the highest rate of growth, prime and better consumers still represent over 70% of total consumers with an outstanding balance, indicating a relatively healthy risk profile of the overall consumer credit population in Canada.  

As falling interest rates have provided some relief and the number of Canadian consumers using credit has continued to grow, there has been a spike in new origination volumes, which increased 5.3% YoY leading to $123 billion in new outstanding balances in the most recent quarter. All major credit products saw a healthy YoY growth in originations, except for line of credit product, which was down by 8.4% YoY.

Following a period of persistently high inflation rates, combined with recently rising unemployment rates, more consumers have missed payments, as serious delinquencies[2] rose 17 bps to 1.73% YoY in Q3 2024.

As debt levels have grown, consumers are facing higher minimum payments, especially for mortgages, which have risen 11% YoY due in part to higher interest rates. The overall increase in delinquencies is mainly due to missed payments on non-mortgage products, with serious non-mortgage delinquencies at 1.71%, the highest level observed since early 2019.

Regional trends are also prevalent as Alberta led all provinces with 2.21% serious consumer delinquency, followed by Manitoba with 2.02% and New Brunswick with 1.99%. Ontario experienced the highest rise in delinquency in the third quarter at 24 bps YoY, followed by Manitoba at 19 bps. More regional insights are available here.

Mixed trends in the economy and consumer credit market including lower demand, and worsening credit performance saw the TransUnion Credit Industry Indicator (CII) drop for the fifth month and is down by 7 points from the prior year to 101 in September 2024, reflecting a deterioration of the health of the Canadian credit market. The indicator [TN1] has been impacted by the fact that interest rates remain elevated in near term comparisons, weakening employment offset by the rate of inflation has eased. In addition, non-mortgage balances have remained flat and delinquency rates are also higher across most products. 

“Delinquency rates are a lagging indicator, and we expect that lowering inflation combined with interest rate reductions may provide a relief valve for some struggling consumers,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada. “Lenders should continue to pay heightened attention to more vulnerable consumers, as well as continue to monitor for early warning signals of risk. Canadian consumers facing pressures should focus on making at least the minimum payments on outstanding credit, when possible, to help ensure continued access to credit and [TN2] [MF3] [TN4] prevent any potential negative impact to their credit profiles.”

2025 Forecast: Varied, but Optimistic

In 2025, TransUnion expects the Canadian credit market activity and performance to be mixed, based on Q3 2024 consumer risk profiles, the projected reduction in interest rates and inflation, and some lingering effects of the past three years of elevated inflation and high cost of debt.

Taking these macro and credit dynamics into account, TransUnion conducted a forecast for Q4 2024 through Q4 2025, by leveraging four groups of macroeconomic variables in the projections: economic activity, unemployment, inflation and interest rates. Those projections looked to answer the following questions:[TN5] [MF6] 

• As interest rates decrease and economic activity improves, what can be expected in terms of demand and supply of credit?
• As consumers continue to leverage credit more responsibly, what can be expected in terms of credit performance?

TransUnion uses key macroeconomic scenarios, based on forecasting data from S&P, as input for their credit forecast model. These scenarios suggest that economic activity is expected to improve as people are spending more and job opportunities are stabilizing. Households will likely have more money to spend as both savings and wage growth increase faster than inflation. Canada's job market should keep growing, though not as quickly as the past two years, but it will support consumer credit stability.

Inflation is expected to stay within the Bank of Canada’s 2% target, driven by a drop in gas and housing costs. Lower interest rates are expected to help revitalize the mortgage market as consumers who previously waited on the sidelines might enter as affordability improves. Additionally, a lower mortgage rate environment should jump start the refinance market that has been relatively stagnant over the past three years. [TN7] Recent changes to federal mortgage lending guidelines – allowing 30-year amortizations and raising the maximum price eligible for the Canada Mortgage and Housing Corporation insurance this December – is expected to lessen the drag on household finances from mortgage renewals and lead to a faster rebound in housing sales and home prices. The objective of this forward-looking view on the market is to provide a basis for forecast originations (segmented by risk), average consumer balance (segmented by risk as well) and balance-level delinquency for cards, personal loans, auto loans, lines of credit and mortgages.

• Credit cards: TransUnion forecasts continued growth for credit cards. While origination volumes are expected to be relatively flat to prior year at 7.2 million new cards in 2025, average balance per consumer is expected to grow to $3,320 in December 2025 (up 3.9%) for prime and above consumers with a card, and increase to $9,231 (up 1.6%) average balance per consumer for those in below prime risk tiers. Our forecast shows a slight drop of 2 bps in consumer-level delinquency rates through 2025, reaching 0.89% by end of the year.
• Auto loans: Growth is expected to skew toward riskier borrowers in the below prime risk tiers, with originations in that segment projected to grow 11% by the end of 2024 and increasing another 7% through 2025, as vehicle inventories replenish and demand remains strong. Loan sizes are expected to remain relatively flat as lower interest rates may somewhat offset the continued shift toward higher average purchase price. Average loan amounts are anticipated to drop by 1% for below prime loans through 2025, while above prime balance growth is likely to fall 6% YoY. Overall consumer-level delinquency rates are expected to improve slightly, down by 2 bps YoY by the end of 2025.
• Personal loans: A more favourable interest rate environment is expected to help revitalize the personal loan market. Acquisition growth is forecasted at 11% YoY for loans to prime and better consumers and 18% YoY for below prime consumers by the end of 2025. Average balance growth is likely to remain flat at just under 1% for below prime consumers and drop 2% for prime and better consumers.
• Mortgages: As the Bank of Canada continues to lower its monetary policy rate, lower mortgage rates and a resurgence in housing demand, combined with continued low inventory, are anticipated to drive increased activity in the Canadian housing market. Mortgage origination volume is forecast to increase 7% YoY from Q4 2024 to Q4 2025, with the concentration of new originations skewed to prime and better consumers. In line with home values, outstanding mortgage average balance is forecasted to grow up to 3% by end of 2025. Driven by the quality of mortgage loans booked, delinquency rates are expected to stay relatively flat, as experienced in recent years and as macro pressures subside for Canadians.

“Though pockets of stress may linger, the continued improvement of macroeconomic conditions, such as inflation and interest rates, is expected to ease pressure on consumer wallets,” Fabian said. “Consumers have been resilient, and we expect to see growth from an increase in originations and average balances, and a positive impact on delinquencies. Lenders should leverage enhanced consumer-level data and attributes to predict these pockets of growth and address consumer needs to drive consumer trust and loyalty.”

TransUnion Canada’s Credit Industry Insights Report (CIIR) is produced quarterly to map consumer credit market trends and health.

About TransUnion^® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.  

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

Canadian business leaders said their companies lost approximately 6% of their equivalent revenue – representing $78 billion – over the past year due to fraud.

In the first half (H1) of 2024, Canada saw a significant increase in suspected Digital Fraud attempts, with nearly 5.74% of all attempted digital transactions where the consumer was located in Canada involving suspected Digital Fraud, revealed a new TransUnion^® (NYSE: TRU) analysis. This is nearly an 11% year-over-year (YoY) rate increase from H1 2023, and TransUnion also documented an 11% increase in the volume of suspected Digital Fraud from Canada during this period, despite a less than a one percent (0.7%) YoY increase in the volume of transactions.

According to a recent TransUnion survey,¹ more than half (54%) of Canadians said they were recently targeted by email, phone call or text message fraud attempts. Phishing was the most common scheme type (45%), followed by smishing (42%) and vishing (39%).

The increasing use of digital transactions, combined with rising suspected Digital Fraud attempts are also impacting businesses as they potentially face revenue losses and increased operational costs due to fraud. According to a TransUnion business survey for the H2 2024 Update to the State of Omnichannel Fraud report, 200 Canadian business leaders said their companies lost approximately 6% of equivalent revenue – representing $78 billion – over the past year due to fraud. The most prominent causes of fraud loss cited by them were:

• Scam/Authorized fraud (31%): Dishonest scheme intended to trick a person into giving up something of value (e.g., account access, money, information)
• Account takeover (19%): Unauthorized individuals taking over someone’s online account (e.g., bank, social media, email) without their permission
• Synthetic identity fraud (18%): Use of a combination of personal information to fabricate a person or entity to commit a dishonest act for financial or personal gain

TransUnion also found that suspected Digital Fraud attempts – where the consumer was transacting in Canada and targeted businesses globally – increased on average by 10.5% YoY in H1 2024 compared to H1 2023 and impacted all industries.

Top Three Industries Globally with Highest Rate of Suspected Digital Fraud Attempts Coming from Canada in H1 2024

1. Gambling (online sports betting, poker, etc.) – 9.6%
2. Retail – 9.2%
3. Government – 7.7%

Top Three Industries Globally with Highest YoY Increase (H1 2024 vs H1 2023) in the Rate of Suspected Digital Fraud Attempts Coming from Canada

1. Logistics – 172.9%
2. Gambling – 79.3%
3. Video gaming – 67.8%

“Protecting customers and their businesses from fraud is essential to enabling safe and tailored consumer experiences. These findings reveal that despite the good-faith efforts that are being undertaken by companies to identify and prevent fraud to date, fraudsters continue to evolve and it’s vital that fraud prevention methods keep up with the changing times,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada.

“Businesses that aren’t already doing so should ensure that they are taking advantage of fraud prevention technologies such as identity verification, IP intelligence, device reputation and synthetic identity detection as critical components of their fraud prevention programs,” he added.

For more insights, read the H2 2024 Update to the State of Omnichannel Fraud report.

About the Analysis

TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate^® The rate or percentage of suspected Digital Fraud attempts reflect those that TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) determined to be fraudulent upon customer investigation, or 4) determined to be a corporate policy violation upon customer investigation —compared to all transactions it assessed for fraud. 

Specific country and regional data in the report include the United States, Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom and Zambia.

Consumers who believe they may be a victim of fraud can find resources and information here.

About TransUnion^® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

¹ TransUnion Q3 2024 Consumer Pulse survey of 1,000 consumers – conducted between July 16–23, 2024.

• Canadian household debt hits a record high $2.41 trillion, with mortgage debt making up 74% of the total outstanding balances.
• More Canadians face payment stress as consumption demand grows.
• Percentage of consumers missing payments for 90 or more days continued to rise, up 22 bps year-over-year to 1.74% as higher living costs combined with higher interest rates put more pressure on vulnerable consumer segments.

Canada’s total credit debt grew by 3.2% year-over-year (YoY) to a record $2.41 trillion during the first quarter of the year, according to TransUnion Canada’s Q2 2024 Credit Industry Insights Report, which is produced quarterly to map consumer credit market trends and health. Mortgage debt, comprising 74% of total debt, remains relatively healthy, underpinned by strong credit quality among mortgage holders and rising home values. Non-mortgage debt, including credit cards, loans, and lines of credit, continues to rise, reflective of higher consumption needs for Canadian consumers.

The TransUnion Credit Industry Indicator (CII) dropped slightly by one point from prior year to 104.5, due to a slowdown in credit supply coupled with a rise in delinquency rates, somewhat offset by higher balances and strong demand for credit.  

Credit access – the overall number of credit-active consumers – is a key driver of this growth, up by 3.7% from prior year. As of Q2 2024, there are 32 million Canadians with at least one active credit product in their wallets, which represents approximately 92% of adult credit eligible Canadians. Younger Canadians are driving the bulk of increased participation, with Millennials (born 1980 to 1994) and Gen Z (born 1995 to 2010) driving $98 billion in growth of outstanding balances year-over-year. Gen Z consumers continue to be the fastest growing segment as more consumers from this group are becoming of credit-eligible age (18+) each year and entering the credit market for the very first time.

New credit openings grew YoY 10.4% (representing $77.9 billion in balances), driven by credit cards, with new credit card balances[1] growing 7.5%. This is partly because of the continued influx of Gen Z consumers into the credit market, who typically open a credit card as their first credit product. New mortgage originations stalled, driving an increase in real estate supply, as elevated interest rates continue to leave some buyers on the sidelines.

More Consumers Face Payment Stress

Average balances for major products held by Canadian consumers continued to grow during Q2 2024, with auto loan balances showing the highest growth (6.2% YoY) driven by higher ticket prices. In Q2 2024, average balances for credit cards grew 4.7% YoY, and installment loan and mortgage average balances grew 4.4% and 3.1%, respectively.

The growth in average credit card balances was primarily driven by consumers spending more on their credit cards, while paying down less on their monthly due payments. This indicates that specific segments of Canadians may be experiencing cash flow challenges while being increasingly reliant on credit cards. The number of Canadians only making minimum payments on their credit cards increased six basis points (bps) YoY to 1.2% of all credit card holders.

Higher outstanding balances combined with the higher cost of debt may have reduced financial flexibility for some consumers, making them more vulnerable to reduced disposable income, or the capacity to meet unexpected expenses. Increases in minimum payment due amounts were observed to have the largest impact to mortgages (13.5% YoY), followed by credit cards (10.6% YoY) and personal loans (10.5% YoY), with the growth in payment due amounts seen across all risk tiers[2].

“If the Bank of Canada continues to reduce interest rates, payment pressures may ease; however, lenders need to carefully monitor consumer behaviours, and predict and identify resilient versus vulnerable borrowers. Our analysis shows that a 50 bps decrease in mortgage interest rates from current levels could reduce mortgage payments by 12% or more for new or renewable mortgages openings in the coming months and help reduce the number of Canadians that are unable to make their monthly payment,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada.

Delinquencies Continue to Rise as the Cost of Living Pressure Mounts

Overall serious consumer-level delinquency rates (90 or more days past due on payments on any account) continued to rise, up 22 bps YoY to 1.74%, as the pressures of higher cost of living combined with high interest rates have impacted vulnerable consumer segments.

This phenomenon is especially evident among subprime borrowers, with serious delinquency among this group rising 131 bps to 15.7%. Some consumers with lower credit scores are struggling to keep up with their payments in the current economic climate.

Albertans had the highest serious delinquency observed in Canada at 2.18%. This is followed by consumers in Manitoba (2.03%) and New Brunswick (2.03%). Alberta also saw the highest YoY rise in delinquency, at 30 bps YoY, followed by Ontario.

Serious Consumer Delinquency Levels by Province

In addition to rising delinquencies, consumers are progressing from early stages (30 days past due payments) into later stages (90 days past due payments) of delinquency at a higher rate. A higher percentage of delinquent consumers moved or rolled forward from early stage to later stage of delinquencies – 12% in Q2 2024, compared to a 7% roll forward rate a year ago. Across products, when borrowers fail to make payments on balances and move into later stages of delinquency, the impacts can include increased interest charges, fees and penalties, along with reduction to credit scores.

“During these times of uncertainties, lenders need to monitor and predict portfolio health indicators by leveraging holistic consumer attributes. Our recent research studies have shown that by incorporating consumer-level trended data, we can help predict resilient consumers to drive smart growth, identify early warning signs of vulnerability to mitigate risk, and prioritize collection resources effectively to predict repayments. The Canadian credit economy would benefit from enabling consumers to continue leveraging credit for responsible behaviours,” said Fabian.

About TransUnion^® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

• 57% of Canadian households said their incomes are not keeping up with the current rate of inflation.
• 38% expect payments for bills and loans to increase over next three months.
• Over a quarter (27%) of Canadians plan to apply for new or refinance existing credit in the next year.

TransUnion’s most recent Q2 2024 Consumer Pulse study reveals that financial optimism is low among Canadians, with over half (58%) reporting that they are not optimistic about the state of their household finances over the next 12 months. A further 65% of study respondents indicate that they feel Canada is currently in a recession or will enter one before the end of 2024. An even higher percentage, 86%, say inflation is in their top three household financial concerns over the next six months – the highest percentage since TransUnion began tracking it quarterly in Q2 2022. This economic cycle could be the driver of increased demand for credit, with over a quarter (27%, up four percentage points from Q1 2024) of Canadians saying they plan to apply for new or refinance existing credit in the next year, potentially reflecting the need for additional liquidity.  

Almost half (46%) of Canadians say that their household finances are worse than planned at this point in 2024, up four percentage points from a year ago. This is despite 79% of Canadians who reported that their income either stayed the same or increased in the last three months. In comparison, 21% reported that their household income decreased in the last three months and 40% expect their household income to increase in the next year. While the study finds that the majority of Canadians say their income has either stayed the same of increased, 57% feel their income is not keeping up with the rate of inflation.

“While income levels are holding steady overall, our data indicates that cost of living increases continue to put pressure on household finances and are fueling a decline in financial optimism among Canadians. Many Canadians are tightening spending and looking to take on more credit to help with cash flow. With the Bank of Canada recently lowering the prime interest rate for the first time in four years we may see some of these trends around taking on new credit or refinancing existing loans accelerate,” said Matthew Fabian, director of financial services research and consulting. “This is especially likely for younger Canadians, who indicated that interest rates play a larger factor in their decision to take on new credit.”

Other key findings of the study include:

Canadians feeling the strain of increased cost of living

Low (61%) and medium household incomes (57%) and older Canadians say their household incomes aren’t keeping up with inflation the most, with 66% of Gen X and 60% of Baby Boomers indicating this. Many Baby Boomers and some Gen Xers are at or near retirement, meaning they may have fixed retirement incomes which increases the pressure of inflation.

As this pressure rises, consumers must make trade-off choices as to where money is directed. Essential goods such as groceries and gas tend to be considered as spending priorities, potentially leaving less disposable income available to cover credit debt. As seen in the most recent TransUnion Consumer Industry Insights report, 1.3% of Canadians are only paying the minimum balance in their credit card.

Shifts in saving patterns and taking on more debt

Despite some Canadians only making minimum payments on their credit cards, there was a four-percentage-point increase in the number of Canadians who say they paid down debt faster in the last three months, when compared to Q1 2024.

Other ways Canadians reported they adjusted their saving patterns in the last three months include:

• Saving more in their emergency fund (17%)

o   This increases significantly for Gen Z (28%)

• Cutting back on saving for retirement (16%)  
• Increasing usage of available credit (16%)
• Using their retirement savings (11%)
• Saving more for retirement (10%)

Canadians anticipate shifts in household spending

 Canadians are showing concern about the increased cost of goods for non-discretionary items saying they were most concerned with the increased cost of:

• Groceries (89%)
• Gasoline for cars (61%)
•  Utilities (52%)

In the next three months, Canadians are anticipating their spending habits to accommodate the rising cost of living. While over a third (38%) expect to increase the amount they pay for bills and loans, over half (52%) said they’ll cut back on discretionary spending (dining out, travel and entertainment). In fact, 57% say they already cut back on discretionary spending in the last three months, and a significant percentage say they canceled subscriptions or memberships (29%) and canceled or reduced digital services (24%) in that timeframe.

Interest rate levels impact appetite to take on more debt

Nearly two-thirds (62%) of Canadians indicate that rising interest rates have a high or moderate impact on whether they’ll apply for new credit in the next 12 months. This percentage increases among Gen Z at 77% and Millennials at 74%, compared to 59% of Gen X and 47% of Baby Boomers.

Nearly one in three Canadians struggling to pay their bills and loans in full

Thirty percent of Canadians report that they expect to be unable to pay at least one of their current bills and loans in full meaning some may need to tap into savings or take on additional credit to pay these balances. Among those who said they couldn’t pay at least one current bill and loans in full, 35% intend to pay a partial amount they can afford.

Other ways Canadians said they plan to help pay their currents bills and loans among those who said they couldn’t pay at least one:

• Nearly one-third (32%) of Gen Z plan to use their available credit card.
• Nearly a quarter (23%) of Gen X don’t know how they’re going to pay for their bills/loans.

Of those planning to take on more debt, 69% say they’ll either apply for a new credit card or increase available credit on their existing card

Of those who plan to take on new or refinance existing credit in the next 12 months, nearly half (47%) expect to apply for a new credit card and 22% say they’ll increase available credit on their existing credit card. This is despite a historic record of 31.5 million Canadians holding at least one credit product (an increase of 3.75% YoY).

Other forms of additional credit that Canadians plan to apply for in the next year include:

• New personal loan (20%)
• New car loan or lease (18%)
• Refinance mortgage, home loan or bond payment (17%)
• New mortgage (15%)
• New buy now, pay later payment services (12%)
• New home equity line of credit (11%)
• Refinance car loan (10%)

Gen X is feeling the most financial strain

Gen X appears to be the most stressed about their financial situation, with 53% reporting their household finances are worse than expected – the highest among generations surveyed. This can potentially be attributed to them carrying a large amount of debt like mortgages, and some nearing retirement. As noted earlier in this press release, this age group had the highest percentage (66%) of Canadians who said their incomes are not keeping with the current inflation rate.

Over a third (35%) of Gen X surveyed don’t expect to be able to pay at least one of their current bills and loans in full, higher than the 30% overall. This could again be attributed to the large amount of debt this generation is carrying.

Despite concern around interest rates and rising cost of living, Canadians still believe in the importance of credit

Canadians overwhelmingly see the value of credit, with 87% saying that access to credit and lending products is important to achieve their financial goals. However, over half (52%) believe they don’t have sufficient access to these products.

Of all age demographics, only Baby Boomers (71%) report a majority of respondents believe they have sufficient access to credit and lending products. 

The complete Consumer Pulse study can be viewed here.

*The most recent Consumer Pulse study includes a survey of 1,000 Canadian adult consumers conducted May 1-10, 2024.    

About TransUnion^® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: transunion.ca

For more information or to request an interview, please contact:

Katie Duffy

Email: katie.duffy@ketchum.com

Telephone: +1 647-772-0969

•  Credit participation in Canada continued to rise, led by new-to-country and Generation Z consumers, driving total debt to $2.38 trillion
• Continued higher cost of living and interest rate pressures led to rising consumer-level delinquencies
•  Alberta experienced the highest rate of delinquencies (2.21%), Quebec saw the lowest rate (1.29%), and Ontario displayed the most significant increase (+26 basis points, year-over-year)

Amid persistent economic challenges marked by high inflation and interest rates, Canada's credit market continued to expand during the first quarter of 2024. The TransUnion Credit Industry Indicator (CII) remained stable year-over-year (YoY) at 106. The CII demonstrated the aggregated effect of higher consumer credit demand being met with restrained lender risk appetite, consumers leveraging credit and slight negative pressure from rising delinquency rates.

The CII is part of the quarterly TransUnion Credit Industry Insights Report, and maps consumer credit market health.

During this quarter, credit participation – measured as the number of credit-active consumers –grew 3.75% YoY, with a historic record of 31.8 million Canadians now holding one or more credit product(s). New-to-Canada consumers remain a strong driver of this growth trend, with originations within this group increasing by 33% YoY, representing 11% of new origination volumes.

Additionally, younger Canadians, specifically Generation Z (born 1995 - 2004) consumers, are driving the surge in credit participation, while exhibiting a 30% YoY growth in outstanding balances. Balance growth in this cohort was primarily driven by card and personal loan products, which increased by 18% and 11% respectively during Q1 2024.

Concurrently, credit participation among Millennials (born 1980 – 1994) grew 5% YoY. This generation is now the largest share of consumers by age participating in Canada’s credit market, holding 27% of credit accounts – surpassing the share of Baby Boomers (born 1946 - 1964) for the first time. Millennials hold the largest share of debt ($911 billion of the $2.38 trillion credit market) – approximately 38% of all debt, likely due to higher credit needs in their lifecycle as they grow older.

“Inflationary pressures may lead consumers to turn to bankcards or personal loans to help make ends meet, and Millennials and Gen Z consumers are no exception,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada. “Lenders need to carefully monitor credit performance in the coming year, particularly among younger consumers and those at lower income levels who may be more vulnerable to the current economic strains of elevated inflation and interest rates. A portion of consumers in these segments are likely to still see some challenges despite anticipated interest rate relief later in the year.”

Continued macro pressures have led to performance deterioration

The impact of the current higher cost of living varies across Canada’s provinces in turn influences payment capacities and delinquency rates. Furthermore, specific regional economies can be more susceptible to economic shifts in unemployment and productivity, which further places strain on consumers.

For example, Alberta led all provinces in Q1 2024 with a 2.21% serious consumer-level delinquency (more than 90 days past due), followed by New Brunswick (2.16%) and Manitoba (2.11%). Even though the serious consumer-level delinquency rate in Ontario is relatively lower at 1.82%, it saw the highest YoY increase in serious consumer delinquencies – 26 basis points (bps), followed by Manitoba and Quebec (24 bps).

Table 1: Total Consumer-Level 90 Days Past Due by Province

“Despite these rising delinquency levels, Canada’s commodity-producing provinces remain best positioned to weather growth headwinds,” said Fabian. “These regions generally experience more volatile economic conditions, given their additional dependency on commodity prices and seasonality. Cost of living increases are not uniform and impact regions differently across Canada. While we see delinquency rates rise faster in some areas, future economic growth and lower interest rates are expected to offset this in the long run.”

When viewed nationally, consumer-level serious delinquency rates on non-mortgage balances increased by 19 bps YoY, to 1.75%. When looking at individual credit products, consumer-level delinquencies increased YoY for all products with the exception of personal loans.

Table 2: Consumer-level serious delinquencies across products – 

Q1 2024

In addition to rising delinquencies, more accounts are rolling forward into later stages of delinquency – 11% more did so than in the same quarter in 2023.  Moreover, the volume of charge-offs (where debt is deemed unlikely to be collected by the creditor) increased approximately 2% as consumers faced increasing pressure to make their due payments.

Payment stress evident in consumer behaviours

Historically high interest rates have led to higher payment obligations across non-mortgage credit products. During times of economic uncertainty and stress, consumers generally tend to prioritize mortgage payments over other products, as demonstrated by TransUnion’s payment hierarchy study. Given the higher payments that many consumers now face on their mortgages, some consumers are making lower payments on other non-mortgage obligations, including credit cards, where consumers can pay less than their full outstanding balance each month.  In recent periods, the amount consumers pay over the minimum required payment due on credit cards has decreased, driving up revolving balances. As a result, the aggregate excess payment (AEP)¹ to outstanding balance ratio has declined by 187 bps YoY.

The percentage of cardholders making only the minimum payment due has grown by 1.3% (up 8 bps YoY).   As fewer consumers are paying down their card balances, revolving balances are growing.

“We have observed that when consumers are faced with mortgage payment shock, the impact on credit card delinquency is two to three times that of mortgage delinquency,” Fabian said. “Non-mortgage debt held by homeowners is now well above 2019 levels, with at least 50% of outstanding mortgages yet to be repriced.”

Given that specific pockets of consumers are experiencing elevated interest rate and inflation sensitivity, lenders have access to tools that can predict early signs of vulnerability.

“Lenders are best positioned to fuel smart growth by identifying resilient consumers at origination and by predicting and helping consumers who are likely to miss a payment,” Fabian said. “Proactively monitoring risk levels and identifying early warning signals of default can help lenders identify vulnerable consumers before they exceed limits or miss payments, and in turn help fund sustainable growth within the resilient consumer segments.”

¹ TransUnion developed a metric called the Aggregate Excess Payment to better gauge how much in excess of the minimum payment was made. The variable was calculated by subtracting the total minimum due from the total payments made across all of a consumer’s credit cards.
 

About TransUnion^® (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.  

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Katie Duffy

E-mail: katie.duffy@ketchum.com

Telephone: 647-772-0969

TransUnion (NYSE:TRU) has promoted Ashish Khattar to Chief Revenue Officer of Canada. With a successful track record and extensive financial services and information solutions experience, Khattar will oversee sales, customer success, sales operations and enablement for TransUnion’s Canada business. Khattar will focus on driving continued growth and building on strong client relationships. He will ensure TransUnion continues to innovate and drive value for Canadian customers and consumers. He will also serve as a member of the senior leadership team and help ensure TransUnion continues to grow and further solidify its leadership position in Canada.

Khattar has been an integral part of the company since joining in 2016 as the Business Head of Financial Services for TransUnion’s India business. He relocated to Canada in January 2020 and held the position of Vice President, Financial Services, where he spearheaded growth and drove strategic value for Canada’s leading banks and financial institutions.

“I am excited to have Ashish take on an expanded role within TransUnion and be able to bring tangible value to our customers across all business verticals,” said Juan Sebastian D’Achiardi, Regional President of TransUnion Canada. “Ashish has demonstrated exceptional leadership capabilities with a deep customer-centric mindset, driving strategic value for our customers and building on our strong client relationships. I am confident that he will continue to succeed in driving growth and delivering exceptional customer service, while providing leadership and strategic guidance to our business.”

Before joining TransUnion, Khattar held a number of senior sales positions at various leading financial institutions, such as Citibank and Deutsche Bank. He has a Bachelor of Computer Application and a postgraduate management diploma from the Indian Institute of Planning and Management.

“Providing strategic value and innovative solutions that help make trust possible between businesses and consumers is core to TransUnion,” said Khattar. “I am proud to lead the team that helps bring those solutions to our customers and look forward to driving continued growth, tangible value and innovation for all our customers.”

About TransUnion® (NYSE: TRU) 

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care. 

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

Key Findings:

• 39% growth in the rate of suspected digital fraud attempts year-over-year (YoY) for transactions originating from Canada in 2023.
• 60% of Canadians surveyed said they were recently targeted with fraud, of which 10% fell victim. 
• 93% said having confidence their personal data will not be compromised is important when choosing who to transact with online.   
• 42% said they abandon their online shopping carts due to fraud and/or security concerns.
• 8.4% of e-commerce transactions in 2023 were targeted by suspected fraud attempts originating from Canada.   
• 202% increase in the volume of suspected digital fraud attempts from Canada between 2019-2023. 
• 258% increase in the rate of suspected digital fraud attempts originating from Canada within telecommunications sector from 2022-2023.

Canada experienced a significant increase in suspected digital fraud attempts in 2023, with more than 5% of all transactions where the consumer was located in Canada being targeted by suspected fraud, revealed a new data analysis from TransUnion (NYSE: TRU). While the rate of suspected digital fraud grew YoY globally by 8% from 2022-2023, Canadian-based fraud significantly outpaced the global rate with a 39% increase in 2023 from 3.6% in 2022. Canada had the fifth highest rate of suspected digital fraud and the third highest rate increase from 2022-2023 out of the 19 countries analyzed.

The pivot to increasingly digital transactions since the beginning of the pandemic means Canadians face a new norm when it comes to the elevated severity and volume of attempted digital fraud rates. At the same time, the number of digital transactions has markedly risen in the last few years, further fuelling the volume of potentially fraudulent activity with a 202% increase in suspected digital fraud attempts originating from Canada from 2019-2023. The rate of suspected fraudulent digital transactions also increased during this same period by 105%.

“Digital fraud attempts from Canada grew dramatically over the past year across most industries. As the world accelerated digital engagement, fuelled by the pandemic, Canadian consumers and businesses face a new norm with significantly elevated fraud risks,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada. “Canadian businesses and consumers are challenged to remain one step ahead of these increasingly sophisticated and ever evolving fraudsters. Fraudsters continue to prey on organizations that have direct access to money, products or services with easily transferable monetary value. There is no doubt that fraud remediation will continue to be a key priority for organization and businesses.”

Top Industries Targeted by Suspected Digital Fraud from Canada Include Retail, Communities, Video gaming, Gambling and Financial Services.

In 2023, the retail sector experienced the highest rate of suspected digital fraud, with just over 8 in every 100 transactions (8.4%) where the consumer was located in Canada being suspected fraudulent. The rate of suspected digital fraud in 2023 (the number of fraudulent transactions divided by all transactions in that industry) originating from Canada for all industries analyzed were:

• Retail: 8.4%
• Communities (online dating, forums, etc.): 6.2%
• Video gaming: 4.6%
• Gambling: 4.0%
• Financial services: 3.1%
• Telecommunications: 2.7%
• Insurance: 2.5%
• Travel and leisure: 0.6%
• Logistics: 0.4%

Significant Increase in Rate of Suspected Digital Fraud Across Multiple Sectors.

Increased suspected digital fraud rates originating from Canada spanned every industry except one analyzed. The telecommunications industry saw the most significant increase with a 258% jump from 2022-2023; followed by communities at 129%; and financial services at 75%.  The only industry without an increase was logistics, which experienced a decline of 34%.

Suspected Digital Fraud Attempts Shift to New Industries Globally vs. Canada

Fraud Concerns have Strong Influence over Who Canadians Choose to do Business with and make Purchases from.  

TransUnion survey data from December 2023 shows that Canadians’ fraud risk and security concerns have significant influence over who they choose to do business with. This includes:

• 42% of Canadians abandon their online shopping carts due to fraud and/or security concerns.
• 71% will not return to a website if they have fraud concerns.
• 93% of Canadians said having confidence their personal data will not be compromised is important when choosing who to transact with online.
• 34% of Canadians have switched their online transactions to another website due to fraud or security concerns.
• 46% of Canadians said that security of their personal data was the number one consideration when deciding what online company to do business with.

Canadians Report Being Targeted by a Diverse Mix of Fraudulent Schemes.

In the same December 2023 survey, 60% of Canadians surveyed said they were targeted with online, email, phone call or text messaging fraud in the last three months, of which 10% fell victim. Of those who said they were targeted, Canadians reported a diverse mix of fraudulent schemes including:

• Phishing (fraudulent emails, websites, social posts, QR codes, etc., to steal data): 50%
• Smishing (fraudulent text messages intended to trick the victim into revealing data): 43%
• Vishing (fraudulent phone calls intended to trick the victim into revealing data): 38%
• Third-party seller scams on legitimate online retail websites: 22%
• Identity theft (personal information like name, address, phone number or security number was stolen in a company’s data breach): 14%
• Social engineering scam (solicited to transfer or move illegally acquired money on behalf of someone else): 18%
• Stolen credit card or fraudulent charges: 14%
• Money mule scam (solicited transfer or move illegally acquired money on behalf of someone else): 12%
• Account takeover (online account used without permission): 11%
• Unemployment fraud: 6%

The Most Suspected Digital Fraud Occurs Globally at Account Creation, from Canada at Login.

In reviewing the different points in a consumer journey, the data analysis reveals that the highest percentage of digital fraud occurs at account creation globally but at account login from Canada.

Globally, the analysis found that 13.5% of all digital account creation activity involved suspected fraud in 2023. For digital transactions where the consumer was in Canada, the suspected fraud rate at account creation was 5.1% last year. In comparison, the rate of suspected digital fraud at account login in Canada was 10.9% in 2023 (3.2% globally). When money is being exchanged in the transaction for instance for purchases, transfers, deposits and withdrawals, 1.2% of those types of transactions from Canada were suspected fraudulent (2.5% globally).

For more insight, read the 2024 State of Omnichannel Fraud Report. 

About the Analysis

TransUnion came to its conclusions based on proprietary insights from billions of transactions in its global intelligence network and a recent global consumer survey.

The rate or percentage of suspected digital fraud attempts reflect those which TransUnion customers either denied in real time due to fraudulent indicators or determined were fraudulent after reviewing — compared to all transactions it assessed for fraud. The country and regional analyses examined transactions where the consumer or suspected fraudster was located in a select country and region when conducting a transaction. The global statistic represents every country worldwide and not just the select markets.

This online survey of 13,923 adults was conducted December 5-23, 2023 by TransUnion with Dynata, a third-party research provider. Adults 18 years of age and older residing in 18 countries (Brazil, Canada, Chile, Colombia, the Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the UK, the US and Zambia) were surveyed using an online research panel method across a combination of desktop, mobile and tablet devices. Survey questions were administered in Chinese (Hong Kong), English, French (Canada), Portuguese (Brazil) and Spanish (Colombia, the Dominican Republic, Mexico, Puerto Rico and Spain). To ensure representativeness across resident demographics, the survey included quotas to balance responses across key demographics like age, gender and income.

Editorial Note:

The final two paragraphs of the press release were updated on 7 March 2024. It previously stated:

The Most Suspected Digital Fraud Occurs at Account Creation.

In reviewing the different points in a consumer journey, the data analysis reveals that the highest percentage of digital fraud occurs at account creation.

Globally, the analysis found that 13.9% of all digital account creation activity involved suspected fraud in 2023. For digital transactions where the consumer was in Canada, the suspected fraud rate at account creation was 4.9% last year. In comparison, the rate of suspected digital fraud at account login in Canada was 3.9% in 2023 (2% globally). When money is being exchanged in the transaction for instance for purchases, transfers, deposits and withdrawals, 2.3% of those types of transactions from Canada were suspected fraudulent (3.6% globally).

We apologize for the error.

About TransUnion® (NYSE: TRU)  

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.  

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca 

For more information or to request an interview, contact:

Contact: Alex Wilcox

E-mail: Alex.Wilcox@ketchum.com

Telephone: +1 705-878-6815

• Consumer credit-active population growth is primarily driven by New-to-Credit consumers, with those being New-to-Canada driving the trend.
• Canada’s credit market reached a new high, in terms of outstanding balances.
• Rising delinquencies, observed for three consecutive quarters, are prompting lenders to tighten underwriting standards.

Against a macroeconomic backdrop of persistently elevated inflation and high interest rates, TransUnion data indicates more Canadians are engaging in the credit marketplace, leading to a steady growth in credit participation. The number of consumers holding at least one active credit product grew by 3.6% year-over-year (YoY) in the fourth quarter of 2023 to an unprecedented 31.5 million, with approximately 96% of Canada’s credit-eligible population – consumers aged 18 and older – having access to at least one traditional credit product. At the same time, New-to-Credit Canadians represented $1 billion growth in balances over the past year.

The volume of credit originations by ‘New-to-Canada’[1] consumers grew 46% YoY from 2022 to 2023 and were responsible for 12% of total originations (up from 5% in 2021). This newly credit active population, including nearly 470,000 immigrants[2] over the last year, accounted for $3.5 billion in new outstanding balances.  

“As the New-to-Canada population continues to grow, banks should continue to focus on engaging these consumers and addressing their specific credit needs not only at acquisition, but throughout their lifecycle,” said Matthew Fabian, director of financial services research and consulting at TransUnion Canada. “This segment represents a significant opportunity to build longer and deeper relationships as these new consumer’s credit wallets are likely to expand as they make Canada their new home.”

Along with an increase in total credit participation, the number of consumers carrying a balance also increased by 3.7% YoY and reached 29.1 million, constituting approximately 92% of credit active consumers in Canada. As a result, the total outstanding balances across all credit products reached a new record of $2.4 trillion, reflecting a 2.9% YoY increase as of Q4 2023.

These findings are featured in information and insights company TransUnion’s (NYSE:TRU) quarterly Credit Industry Insights Report (CIIR) and are supported by the company’s Q4 Consumer Pulse Survey.

As part of the CIIR, TransUnion maps consumer credit market health with its Credit Industry Indicator (CII). The CII is a country-specific measure of consumer credit health trends, focusing on four pillars: demand, supply, consumer behaviour and performance. The CII for Q4 2023 in Canada was 106.5 in December 2023, up 1.5 points compared to the same period in 2022. This growth was primarily led by the rising consumer credit participation as balances and the number of consumers in the credit market have continued to grow at a healthy pace.

Lenders Scaled Back due to Concerns Around Rising Delinquencies

Canadians’ average credit balance has trended up, given the underlying macroeconomic environment pressures and consumers’ increased reliance on credit, resulting in increasing minimum payment obligations for consumers.

*Average for all consumers holding one or more account of that product type.

Source: TransUnion Canada consumer credit database

“Rising minimum payment obligations have pressured consumers, although historic strength in the job market and positive real wage growth have helped consumers address this challenge,” said Fabian. “As pressures from inflation and high interest rates continue to persist, more Canadian consumers may find that their disposable income does not keep up with rising payments, and will need to make trade-off decisions between spending and paying down bills and credit debt.”

While Canada’s credit market has demonstrated overall resilience, some consumer segments are facing the combination of a high cost of living, sustained high interest rates, and complex housing dynamics, making them more vulnerable to delinquency.

Overall consumer-level serious delinquency (the proportion of consumers with a delinquency 90 or more days past due) increased 15 bps YoY to 1.66% during the fourth quarter of 2023, which marks the third consecutive quarter of rising default rates. Higher delinquencies were observed across all major consumer credit products.

Table 2: Consumer-level serious delinquency (all products)

*Serious delinquency measured as 60+ days past due for all products expect credit card which is 90+ days past due

Source: TransUnion Canada consumer credit database

“These delinquency levels are still healthy when compared to pre-pandemic delinquency rates. As credit participation increases to include more New-to-Credit and New-to-Canada borrowers, we expect to see a subsequent uptick in delinquency rates, which is reflective of an active credit market in Canada,” said Fabian.

Another trend observed during the fourth quarter of 2023 was an 8% YoY rise in first-time defaulters – those who defaulted on at least one credit account for the first time in their credit history. First time defaulters comprised over 20% of all consumers in early-stage delinquency.

“These trends pose a unique challenge for lenders as these are consumers with no recent missed payments,” explained Fabian. “As these defaults occur for the first time, lenders must focus on devising proactive risk strategies to predict first-time-default customers before they first miss payments, and help to educate consumers and enable responsible credit practices.”

Likely in response to these recent increases in delinquency, lenders have tightened underwriting standards in recent months, as they manage existing portfolio health carefully with slower loan growth. Despite overall inquiries having increased by 22% YoY, most credit products, except for credit cards and auto loans, experienced a YoY decline in origination volumes (a measure of both consumer demand and lender willingness to advance credit).

Source: TransUnion Canada consumer credit database

For more information about the Q4 2023 Credit Industry Insights Report, please click here.

*According to TransUnion CreditVision® risk score: Subprime = 300-639; Near prime = 640-719; Prime = 720-759; Prime plus = 760-799; Super prime = 800+

About TransUnion (NYSE: TRU) 

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada where we’re the credit bureau of choice for most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Alex Wilcox

E-mail: Alex.Wilcox@ketchum.com

Telephone: +1 705-878-6815

[1] ‘New-to-Canada’ consumers are those relocating into the country and entering its credit market for the first time.

[2] Immigrants in Canada 2023 | Statista

• Nearly half (42%) of surveyed Canadians monitor their credit report to help obtain new credit and 45% look to better manage debt.
• Underserved and new-to-credit consumers benefit from greater credit access by monitoring their credit.
• Consumers looking to improve their credit profile benefit from monitoring their credit regularly.

With the number of Canadian consumers enrolled to monitor their credit with TransUnion^® (NYSE: TRU) showing an 11x increase between 2018 and 2023, a new global study has found that the motivations for consumer credit monitoring are diverse. In Canada, the largest share of surveyed consumers (45%) monitor with the goal of better managing their debt levels and preventing fraud activities, while four in 10 (42%) do so in anticipation of opening a new credit account, and 13% seek to improve their credit profile.

To better understand the distinct profiles, motivations and future outcomes of credit monitoring consumers, TransUnion conducted a global research study examining credit behaviours for millions of consumers in both developed and developing markets – Canada, Brazil, Chile, Colombia, Dominican Republic, Guatemala, Hong Kong, India, Philippines, South Africa, the United Kingdom, and the United States. To further identify how these benefits advance credit education and enable financial inclusion, the study used depersonalized credit data to analyze these outcomes for key consumer credit segments: new-to-credit, underserved, and credit served consumers.

“Consumer credit monitoring has expanded considerably in awareness and usage over the past decade. This expansion has recently been fueled by the impact of the pandemic on consumer finances and the heightened familiarity by consumers of becoming victims of credit fraud,” said Nidhi Verma, co-author of the study and head of international research and consulting at TransUnion. “Our study measures the importance of credit education and quantifies the benefits that credit monitoring consumers experience. These benefits are shown to help lead to better credit profiles, greater access to credit, or an improved ability to pay down debt, depending on the intent of consumers who monitor credit.”

In Canada, 71% of surveyed consumers stated that it is important to monitor their credit, with nearly one fifth (17%) saying it’s extremely important. This finding demonstrated that consumer awareness of credit monitoring is high and is a likely driver behind the surge in monitoring activity in recent years.    

TransUnion surveyed Canadian consumers to understand their initial intent to sign up for credit monitoring services, and the actual benefits they have experienced in doing so. The most common reasons consumers initially signed up for credit monitoring services were that it was free (36%), to improve their credit score (32%), and to monitor their report for accuracy (27%).

Additionally, after using monitoring services for some time, Canadian consumers reported added benefits that credit monitoring has enabled them to achieve: learn how to monitor and manage their credit score (43%), gain visibility to changes on their credit report (37%), detect fraud (30%), and pay down debt (21%).

The study further identified three distinct segments of credit monitoring consumers based on their primary motivation for monitoring their credit. These include Credit Seekers, Credit Managers, and Credit Improvers.

Credit Seekers Benefit from Attaining New Credit

Almost half of the credit monitoring population (42%) is doing so with a goal of attaining new credit. Credit Seekers are consumers with near prime and above credit scores who monitor their credit with the intention of opening new credit accounts in the near future. When comparing Credit Seekers who monitor their credit to those who do not, credit monitoring consumers open 1.22x more credit accounts, such as credit cards and auto loans, over the following year.

Both New-to-Credit (NTC) consumers – those early in their credit journeys – and underserved consumers – those less engaged in the credit market overall – saw similar higher levels of new credit activity for the credit monitoring segment. NTC consumers who monitor their credit display 1.19x higher origination rates for any credit type than those with no history of monitoring their credit, and for underserved credit monitors it is 1.21x. “For new-to-credit and underserved consumers, who typically have a more difficult time expanding their credit wallets, credit monitoring can be a crucial enabler of greater credit education and access,” said Verma.

Percent of Consumers Originating a New Credit Card within One Year of Starting Credit Monitoring

* Non-monitoring consumers were analyzed over the same time from the date when credit monitoring consumers with similar credit profiles began monitoring services   

Credit Managers Benefit from Paying Down Debt and Detecting Fraud

As debt levels have risen to near-record levels in recent years, the study found that the highest share of Canadian consumers (45%) monitor their credit with the intention of keeping an eye on their overall balances and credit health. Credit Managers are defined as consumers with near prime and above credit scores who generally monitor their credit with the goal of reducing or maintaining their balances or monitoring for fraud.

When surveyed, 21% of all Canadian credit monitoring consumers said they were able to pay down debt as a result of credit monitoring. In alignment, the study found that Credit Managers decreased their overall balances by an average of 11% within a year after starting monitoring. “Though we are in a high-interest rate environment with consumer credit balances at near-record levels, it’s reassuring to see so many Canadians taking the initiative to ensure they are paying down or managing their debt levels,” added Verma.

Another primary motivation reported by Credit Managers is protecting against fraud. Nearly one third (32%) of Canadian consumers reported that they continue to utilize credit monitoring services over time to detect and protect against fraud. This benefit is of increased importance to consumers considering the continued rise in fraud activity that has been observed since the onset of the COVID-19 pandemic. Nearly half (49%) of Canadians said that they were recently targeted by fraudulent activity during the second quarter of 2023, with fraud attempts in telecommunications having increased by 400% year-over-year (YoY) over those three months.

Credit Improvers Benefit from Monitoring Scores and Staying Current on Obligations

Credit Improvers, who make up 13% of the Canadian credit monitoring population, are defined as consumers with subprime (poor) credit scores who likely use credit monitoring to understand their current credit situations and take steps to improve their credit scores.

The study found that Credit Improvers in Canada generally experienced credit score improvements of 32 points, on an average, one year after they started monitoring their credit. The improvement was at 37 points for NTC consumers – those borrowers who have recently opened their first-ever credit account. In both instances, the improvement in scores was better than a comparison set of consumers who have no history of monitoring their credit.

Median Score Improvement One Year After Starting Credit Monitoring

* Non-monitoring consumers were analyzed over the same time from the date when credit monitoring consumers with similar credit profiles began monitoring services  

“While Credit Improvers are the smallest segment of credit monitoring consumers in Canada, they also tend to see some impactful benefits in terms of credit improvement,” said Matthew Fabian, director of financial services research and consulting at TransUnion in Canada. “It’s a clear indication that those consumers who are actively looking to improve their credit scores may achieve better results if they monitor their credit and are able to plan their steps and track their progress.”

Free Credit Monitoring Benefits Consumers and Lenders

To help more consumers easily access their credit scores, many financial institutions are offering free credit monitoring tools. This easy access not only helps consumers but enables lenders to build stronger relationships with their customers.

Over one-third of Canadian consumers (36%) said they initially signed up for credit monitoring because it was free. Four in ten (40%) said that they would continue to bank with a lender that offered free credit monitoring, and nearly one quarter of these customers (23%) stated they would prefer the lender providing free credit monitoring services over other lenders when opening new products. Nearly one fifth (17%) said they would prioritize payments to that lender over other lenders’ payments.

“Consumers now expect financial institutions to offer free credit monitoring services, as it provides them the tools to improve their credit profiles, better manage existing credit, and seek new credit in the future. Offering such services clearly benefits financial institutions as many of their customers are more likely to remain loyal to them for future credit activity,” concluded Fabian.

For more information about TransUnion’s global credit monitoring study, click here. Consumers interested in obtaining their TransUnion credit report, credit score, and accessing additional credit planning tools can visit here. Learn more about how TransUnion helps individuals protect against identity theft here.

About TransUnion^® (NYSE: TRU) 

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

[1] A new-to-credit consumer is one with no prior credit history on their credit bureau file who opened their first-ever traditional credit product such as a vehicle loan, credit card or other product unique to their region.

[2] Underserved consumers are defined as any person who has two or more years of credit experience, but no more than 2 currently open accounts of one product type ever.

[3] Served consumers are those who are credit-visible, active consumers who have two or more years of credit history, currently have three or more credit accounts open, or have had two or more different credit product types currently or in the past.

Q4 2023 TransUnion Canada Consumer Pulse study key findings:  

• 43% report that their household finances are worse than planned in Q4.
• 43% feel optimistic about household finances over the next 12 months; 57% are not feeling optimistic.
• 48% expect household income to remain the same over the next 12 months, 41% expect an increase, and 11% expect a decrease.
• Of those who said they’d be unable to pay at least one of their current bills and loans in full, 23% indicated they will use their credit card or open a new credit card to help pay their bills and loans. 
• 33% expect their bills and loan repayments to increase over the next 3 months.
• 39% of Gen Z and 35% of Millennials plan to apply for new credit or refinance existing credit.
• Overall, 88% believe monitoring their credit report is important.

TransUnion’s most recent Consumer Pulse study* shows that almost half (43%) of Canadians surveyed felt their household finances are worse than planned, up two percentage points from Q3 2023. This compares to 57% who felt their household finances are as planned or better (Gen Z was the highest among generations at 70%). While more than half (59%) overall said their household income stayed the same in the last three months, 21% reported it increased and 19% said it decreased in that time period. Despite the steady pace or increase in household income for the majority of Canadians, TransUnion data shows a continued shift in spending and saving behaviours which appear to be fueled by the impact of the prevailing cost of living pressures on disposable income and buying power.

The study also indicates that Canadians are preparing for a possible recession by reducing spending (57%), building up savings (36%), paying down debt (31%). At the same time, Canadians’ report that access to credit and lending products is important to achieve their financial goals (86%).

“The impact of higher interest rates and cost of living created increased vulnerability among Canadians,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada. “Consumers are forced to make trade-off decisions on how to allocate their disposable income in a more expensive environment. While Canadians remain resilient, many consumers report that bills and loans are more difficult to cover, which could lead to interest charges. Overall, Canadians are spending less, saving where they can, and turning to credit to help manage their household income cashflow.”

While Canadians remain resilient in the face of the prevailing economic headwinds, financial pressures are impacting Canadians use of credit, spending and saving behaviours. TransUnion’s Q4 Consumer Pulse study shows:

Shifts in Canadian household spending.

• Reduced discretionary spending (e.g., dining out, travel, entertainment) in the past three months (57%) versus 9% who increased discretionary spending.
• Cancelled subscriptions or memberships (25%) versus 7% who increased subscriptions or memberships.
• Cancelled or reduced digital services (19%) versus 6% who added digital services. 

Changes in managing debt or credit.

• Paid down debt faster (19%).
• Increased usage of available credit (14%).

Changes in saving.

• Saved more money in an emergency fund (21%).
• Cut back on retirement savings (16%).
• Saved more for retirement (10%).
• Used retirement savings (8%). 

Canadians have polarizing view on financial outlook.

When it comes to the level of optimism Canadians feel around their financial outlook, the study revealed there are contrasting views. Despite the prevailing financial pressures, 43% of Canadians feel optimistic about their household finances over the next 12 months. Conversely, 57% of Canadians are not feeling optimistic about their financial outlook. Gen Z feels the most optimistic among generations at 61%, followed by Millennials (47%). Gen X and Baby Boomers were significantly less optimistic at 36% and 37% respectively. Overall, the study indicates that 48% of Canadians expect household income to stay the same over the next 12 months, with 41% who believe it will increase and 11% who believe it will decrease.

Canadians anticipate household spending pressures will continue.

Looking to the next three months, the study shows that many Canadians anticipate a continued shift in household spending likely influenced by continued financial pressures and cost of living pressures, including:  

• Bills and loans: Increase (33%), same (49%), decrease (13%).
• Digital services (e.g., wireless, cable TV, internet): Increase (17%); same (58%); decrease (20%).
• Discretionary spending (e.g., dining out, travel, entertainment): Increase (13%); same (32%); decrease (50%).
• Large purchases (e.g., appliances, cars): Increase (12%); same (34%); decrease (34%).
• Medical services: Increase (16%); same (55%); decrease (12%).
• Retail shopping (e.g., clothing, electronics, durable goods): Increase (17%); same (40%); decrease (39%).
• Retirement funds and investing: Increase (13%); same (42%); decrease (23%).  

Access to credit considered key for vast majority of Canadians.

The study further indicates that financial pressures could be driving the importance of access to credit among Canadians. Overall, 86% of Canadians report that access to credit and lending products is important (an increase of 7 percentage points year-over-year), with 40% who said it was extremely or very important. Around one in five (19%) of Canadians report that they don’t feel like they have sufficient access to credit and lending products, compared to 55% who believe they do.    

More than one in five Canadians plan to apply for new or refinance existing credit – with higher rates among younger cohorts. 

Overall, around one in five Canadians (22%) report that they plan to apply for new or refinance existing credit within the next year. Demand for new credit is significantly higher among younger cohorts, at 39% for Gen Z and 35% for Millennials.

Canadians plan to take on diverse mix of credit.  

Of those who intend to apply for new or refinance existing credit, nearly half (45%) plan to apply for a new credit card in the next year. Among those respondents, other planned credit and loan activity in the next 12 months included: 

• New personal loan (24%).
• Refinance mortgage, home loan or bond payment (17%).
• New mortgage, home loan or bond payment (16%).
• New car loan or lease (14%).
• Refinance personal loan (14%).
• New buy now, pay later services (13%).
• New home equity line of credit (9%).
• Refinance car loan (9%).
• New student loan (9%).
• Refinance student loan (6%).
• Refinance home equity line of credit (6%).

 Paying the bills is a concern among many Canadians.

While the majority felt confident they could pay their bills, 33% of surveyed Canadians anticipate their household spending on bills and loans will increase over the next three months. Nearly one third (28%) reported they will be unable to pay at least one of their current bills and loans in full (up five percentage points year-over-year). Of this participating group, this is how they said they’d pay their current bills or loans:

• 35% pay a partial amount based on what they can afford. 
• 23% use their credit card or open a new one.
• 22% borrow money from friends or family. 
• 15% use money from savings. 
• 10% take out a personal loan. 

 Canadians’ focus on monitoring their credit scores.

The TransUnion study further reveals that Canadians have increased their focus on monitoring their credit scores, with 88% believing it is important (an increase of five percentage points year-over-year). This is possibly due to economic volatility driving consumers to be more conscientious of their credit health. Younger Canadians (Gen Z at 91% and Millennials at 94%) had a higher rate, potentially trying to build their credit scores. Around four in ten (41%) of Canadians check their credit scores at least monthly (Gen Z at 65). Among all age groups who said they monitor their credit report, the top reasons cited were: it’s free (46%), to check accuracy (39%), and to protect against fraud (36%). 

The complete Consumer Pulse study can be viewed here. 

*The most recent Consumer Pulse study includes a survey of 974 Canadian consumers conducted Oct. 3-13, 2023.    

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, please contact:

Alex Wilcox

Email: Alex.Wilcox@ketchum.com

Telephone: +1 705-878-6815

• 80% of Canadians surveyed are concerned about falling victim to online fraud during the 2023 holiday season.
• 70% are concerned about sharing personal information.
• Phishing (44%), smishing (37%) and vishing (35%) were the top three reported fraud schemes among those who said they were targeted with fraud over the last three months.
• More than 1 in 5 Canadians (22%) worry about sharing personal information due to government surveillance concerns.  

A recent survey conducted by TransUnion^® reveals that almost half (47%) of Canadians report they were targeted by online, email, phone call or text messaging fraud in the last three months*, of which 8% fell victim. A separate TransUnion study on 2023 Holiday E-commerce Fraud** indicates that the rate of potential fraud for e-commerce transactions where consumers are located in Canada over the “Cyber Five” holiday shopping period increased by 4.5% compared to the same period in 2022, yet was 66.5% lower than during the rest of 2023 (Jan. 1 – Nov. 22, 2023). The five-day holiday shopping period (referred to as the “Cyber Five”), spans the Thursday before Black Friday to Cyber Monday.

While many Canadians are still managing economic pressures and are tightening their spend, TransUnion data indicates that e-commerce transactions (purchases, logins and account openings) originating from Canada were strong over the 2023 Cyber Five period with a 17.2% increase in the volume of transactions, compared to the five-year average from 2018-2022 over the same period. This is despite 80% of Canadians who expressed concern about falling victim to online fraud during the holiday season in general.*** 

“The good news is that Canadian e-commerce activity appeared to be strong over the early holiday period, despite the economic headwinds faced by consumers,” said Patrick Boudreau, head of identity management and fraud systems at TransUnion Canada. “However, since the holiday shopping season attracts an increase in consumers looking for online deals and to buy gifts for loved ones, it also attracts fraudsters looking to take advantage for financial gain. If fraud guards are lowered to help minimise consumer friction and maximise sales, fraudsters can take advantage, which can potentially lead to an uptick in chargebacks, returns and customer disputes down the road.”

Suspected fraud rates decline 66.5% during Cyber Five: According to TransUnion’s 2023 holiday fraud analysis, the rate of suspected fraudulent e-commerce transactions originating from Canada dropped to 1.21% during the Cyber Five shopping period, indicating that around 1 in every 100 transactions were potentially fraudulent over the five-day period. This compares to a higher rate of suspected e-commerce fraud for the rest of 2023 leading up to the Cyber Five period of 3.16%, meaning more than 3 in every 10- transactions were suspected as being fraudulent.

Fraudsters pursuing ever more sophisticated and diverse scams targeting consumers: In Q4 2023, almost half (47%) of Canadians reported being targeted by some online, e-mail, phone call or text message fraud in the last three months. Gen Zs (59%) and Millennials (53%) said they were targeted more frequently than other generations, likely because they’re engaging in more digital transactions and are likely more exposed to increased cyber threats.

Top three fraudulent schemes identified by those who said they were targeted by fraud:

• Phishing (44%): Fraudulent emails, websites, social posts, QR codes, etc. meant to steal data.
• Smishing (36%): Fraudulent text messages meant to trick you into revealing data.
• Vishing (35%): Fraudulent phone calls meant to trick you into revealing data.

Other fraud schemes included:

• Money/gift card scam: 21%
• Third-party seller scams on legitimate online retail websites: 18%
• Identity theft: 14%
• Stolen credit card or fraudulent charges: 12% 
• Account taken over (online account used without permission, including unauthorized stolen funds from bank accounts): 11%
• Unemployment fraud: 9%
• Money mule scam (solicited transfer or move illegally acquired money on behalf of someone else): 8%

Canadians unsure of necessary actions to take when targeted by fraud scams: Of all surveyed Canadians who said they haven’t taken any actions in the last 60 days in response to cyber security concerns, nearly half (48%) said they haven't done so because they were unsure what actions to take.

Privacy concerns top of mind: Privacy remains a top concern for Canadians, with 70% indicating concern with sharing personal information. Reasons for concerns with sharing personal information included identity theft (79%), invasion of privacy (67%), unsolicited marketing communications (44%) and government surveillance (22%).

Canadians monitor their credit reports to protect against fraud: Overall, 88% of Canadians believe monitoring their credit report is important. Around four in ten (41%) of Canadians check their credit scores at least monthly (Gen Z at 65%). Among those who said they monitor their credit report, 36% said they do so to protect against fraud. 

“The insidious aspect of these threats is fraudsters are playing the long game, often seeking to extract information on consumers they can use to build identities to gain access to credit,” said Boudreau. “Given the prevalence of fraudulent scams targeting Canadians, and the reality that fraudsters are ever more sophisticated and constantly evolving to attempt to overcome digital security measures, it's critical Canadians take steps to protect themselves.”

*The most recent Consumer Pulse study includes a survey of 974 Canadian consumers conducted between Oct. 3-13, 2023.    

**The 2023 Holiday E-Commerce Fraud analysis studies e-commerce transactions where the consumer or suspected fraudster was located in Canada when conducting a transaction the Thursday before Black Friday to Cyber Monday. The rate or percentage of suspected digital fraud attempts reflect those which TransUnion customers either denied in real time due to fraudulent indicators or determined were fraudulent after reviewing — compared to all transactions it assessed for fraud.

***Canadians who responded as being extremely, very, moderately or slightly concerned about being victimized by digital fraud this holiday season.

About TransUnion^® (NYSE: TRU) 

TransUnion^® is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada, where we’re the credit bureau of choice for most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

With a backdrop of ongoing economic pressures, the number of Canadians accessing credit increased in Q3 2023, with 31.2 million people holding at least one credit product during the quarter – an all-time high. This was fuelled by a surge of Generation Z consumers (born 1995-2010) and new Canadian immigrants entering the credit market.

The number of new accounts opened (originations) during Q3 2023 grew by 8.7% year-over-year (YoY). Generation Z and Millennials (born 1980 to 1994) made up 56% of all new originations, with originations from Generation Z consumers alone up by 35% YoY. Originations among those new to Canada increased by 62% YoY during Q3 2023, representing 11% of all newly originated credit products[1].

While demand from these diverse groups of consumers, including new-to-credit borrowers, led the growth of the Canadian credit market during Q3 2023, consumers across all risk tiers* showed increased demand for credit. The highest increase in demand was among near prime and prime consumers, at 23.5% and 26.9% YoY, respectively.

These findings are featured in information and insights company TransUnion’s (NYSE:TRU) quarterly Credit Industry Insights Report (CIIR) and are supported by the company’s Q3 Consumer Pulse Survey, in which 40% of Generation Z respondents said that they intend to apply for new credit or to refinance existing credit.

“New-to-credit consumers, whether they’re younger consumers becoming credit-eligible or new immigrants, present a high-potential opportunity for growth, as this segment has an appetite for credit products and they exhibit good credit behaviours.  While many are seeking initial access to credit – most often a credit card or personal loan – this segment can create a base of loyal customers who could become increasingly profitable as their needs and financial capacities continue to grow,” said Matthew Fabian, director of financial services research and consulting at TransUnion in Canada.

“Based on the growth seen over recent quarters, we forecast an incremental opportunity for over $13 billion in credit to be issued to these new consumers by 2025, highlighting the need for lenders to adapt their strategies to offer appealing products, convenience, and benefits, along with appropriate credit lines and pricing,” he added.

As part of the CIIR, TransUnion maps consumer credit market health with its Credit Industry Indicator (CII). The CII is a country-specific measure of consumer credit health trends, focusing on four pillars: demand, supply, consumer behaviour and performance. The CII for Q3 2023 in Canada was 107.7 in September 2023, up 2.1 points compared to the same period in 2022. This growth was primarily led by the rising consumer credit participation as balances and the number of consumers in the credit market have continued to grow.

Graph 1: Canadian Credit Industry Indicatorⁱ

Source: TransUnion Canada consumer credit database.

(i)  A lower CII number compared to the prior period represents a decline in credit health, while a higher number reflects an improvement. The CII number needs to be looked at in relation to the previous period(s) and not in isolation. In September 2023, the CII of 107.7 represented an improvement in credit health compared to the same month prior year (September 2022) and a slight increase in credit health compared to the prior quarter (June 2022).

Canadians feel confident about leveraging credit to cope with rising cost of debt and living

As the number of consumers accessing credit grows in line with shifts in the country’s population, the increased cost of living along with rising cost of credit due to higher interest rates has also pushed Canadian consumers’ average credit balance to grow YoY.

Table 1: Average balances increase YoY

Source: TransUnion Canada consumer credit database

Balance increases in secured loans (auto finance and home finance) were primarily driven by increased average new loan.

Average card spend increased by 2.6% YoY, while the number of cards where consumers paid more than the minimum monthly amount due fell by 311 basis points (bps). This led to a 16% YoY growth in revolving balances (the unpaid portion of a credit card balance that rolls over to the next month). Overall, the increase in average credit card balances was mostly seen among below prime cardholders.

“We have seen a shift in credit card spending and balance-built behaviours through 2023, with the increased cost of living and debt, along with stronger consumer spending, being significant factors leading to the recent rise in credit card balances,” Fabian said.

Despite macroeconomic pressures consumer performance remains resilient

Inflation and increased debt servicing costs can erode consumers’ purchasing power, and possibly lead to higher debt burdens, making it challenging for some consumers to make timely debt repayments. This in turn can contribute to a rise in consumer credit delinquency.

Overall serious consumer-level delinquency (the proportion of consumers with a delinquency greater than 90 days past due) increased 12 bps YoY to 1.56% across all products during Q3 2023, increasing for the third consecutive quarter. However, the level of delinquency itself remains below pre-pandemic delinquency rates. The increased delinquency rates are not surprising as the sheer volume of credit participants in the market has increased, with more young consumers who have less credit experience entering the market.

Table 2: 90 days past due delinquency rates

Source: TransUnion Canada consumer credit database

It is worth paying closer attention to pockets of vulnerability amid the economic headwinds. More recent below prime vintages – those cohorts of below prime consumers who took out loans more recently – has seen a jump of over 100 basis points in delinquency at 12 months on book. One key reason is that a segment of below prime consumers, who already have limited access to credit, are more vulnerable to the adverse effects of cost-of-living increases. When this happens, these consumers face additional financial strain, as they often have fewer financial resources before facing this challenge. This means that they are even more likely to struggle to cover essential expenses such as housing and groceries – exacerbated because they may face higher interest rates on their existing debts.

“Despite slight increases in delinquency rates, the overall risk distribution across Canadians is consistent with what it was pre-pandemic, with below-prime balances still only making up approximately 18% of the country’s total debt,” Fabian said. “The overall trend of improving risk distribution suggests that, overall, Canadian consumers remain resilient despite the economic headwinds they’re facing – although lenders need to predict and identify vulnerable consumers who are increasingly affected by economic and fiscal pressure.”

For more information about the Q3 2023 Credit Industry Insights Report, please click here.

*According to TransUnion CreditVision® risk score: Subprime = 300-639; Near prime = 640-719; Prime = 720-759; Prime plus = 760-799; Super prime = 800+

About TransUnion (NYSE: TRU) 

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including Canada where we’re the credit bureau of choice for most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

For more information visit: www.transunion.ca

For more information or to request an interview, contact:

Contact: Alex Wilcox

E-mail: Alex.Wilcox@ketchum.com

Telephone: +1 705-878-6815

TransUnion Points to Key Tips for Canadians to Mitigate Risk of Falling Victim to Fraud

As consumers and businesses continue to use digital transactions to engage in commerce, fraudsters are increasingly using them for their own benefit. A new TransUnion^® (NYSE: TRU) analysis finds that suspected digital fraud is up in Canada, and consumer-reported fraud is significant. According to a TransUnion survey conducted between April to July 2023, 49% of Canadians stated they were targeted by a fraud scheme recently. ¹ TransUnion also found that digital fraud attempts, where the transaction originated in Canada and targeted global businesses, increased 40% when comparing H1 2022 to H1 2023. While digital fraud impacted all industries, telecommunications, insurance, and online communities (online dating, forums, etc.) had the largest increase in suspected digital fraud during that timeframe, up 400%, 90% and 75% respectively. ²

Among all industries, the suspected digital fraud rate in Canada stood at 4.5%, up from 3.2% one year ago. This compares to the global rate of 5.3%, up from 4.5% year over year. ²

“There are a number of important considerations to take into account when attempting to measure the impact of digital fraud on any one particular industry,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada. “Certain factors must be considered, such as the overall size and rate of growth of different industries. Not only to contextualize fraud related data, but also to anticipate where fraudsters may continue to focus their efforts going forward.”   
 

Insurance Saw the Greatest YoY Growth in Digital Transactions in Canada  
While Retail had the Highest Suspected Digital Fraud Rate

Source: TransUnion^® TruValidate data

This new TransUnion analysis comes on the heels of its recent Q3 Canada Consumer Pulse Study, which explored, among other things, consumer awareness of being targeted by any online, email, phone call or text messaging fraud attempt in the last three months. The TransUnion Consumer Pulse survey of 1,000 respondents was conducted between July 10-20, 2023. ¹ 

The survey found that 43% of Canadians indicated that they had been targeted by fraud but did not become a victim of it, and 6% had been targeted and fell victim. Among those targeted, the most frequent fraud schemes by which they reported being attacked were:

• Phishing at 47% (fraudulent emails, websites, social posts, QR codes, etc. meant to steal data);
• Vishing at 43% (fraudulent phones calls meant to trick you into revealing data); and
• Smishing at 41% (fraudulent text messages meant to trick you into revealing data). ¹    
   

Types of Fraud Canadians Said They Were Targeted With

Source: TransUnion^® Q3 Canada Consumer Pulse Survey

“Given the prevalence of fraudulent scams targeting Canadians, and the reality that fraudsters are ever more sophisticated and are constantly evolving to attempt to overcome digital security measures, it’s critical that Canadians take steps to protect themselves,” said Boudreau. “From safeguarding sensitive information, to protecting physical wallets and cards, and leveraging credit report monitoring, there are a number of easy steps consumers can undertake day to day.” 
 

TransUnion Canada Points to Key Tips for Canadians to Help Mitigate the Risk of Falling Victim to Fraudulent Scams.

• Monitor your credit report regularly for any unauthorized activity.
• Always reconcile your statements and immediately challenge purchases you do not recognize.
• Limit the number of credit cards you have and cancel any inactive accounts.
• Do not carry your extra credit cards, birth certificate, SIN card or passport in your wallet except when necessary to minimize the amount of information that can be misused if lost.
• Install a lockable mailbox at your residence to reduce mail theft.
• Do not discard credit card receipts or other documents containing personal information in a public trash container; use a shredder before discarding.
• Scrutinize your utility and subscription bills to make sure the charges are yours.
• Avoid the temptation to use similar passwords; memorize passwords and personal identification numbers (PINs) so you do not have to write them down.
• If you think you may become a victim of fraud but there has been no reported misuse of your credit or personal information, you can place a Potential Fraud Alert on your credit file to alert potential lenders that you may be a victim of fraud and provide them with your contact phone number.

TransUnion came to its digital fraud findings based on intelligence from its identity and fraud product suite, TransUnion TruValidate, which helps secure trust across channels and delivers efficient consumer experiences. The rate or percentage of suspected digital fraud attempts reflect interactions in which customer transactions were either denied in real time due to fraudulent indicators or were determined to be fraudulent after a manual review process—as compared to all transactions it assessed for fraud.

Download the Omnichannel Fraud in H1 2023 Infographic for more findings. Consumers who believe they may be a victim of fraud can find resources and information here.

¹ TransUnion^® Q3 Canada Consumer Pulse Survey

²TransUnion^® TruValidate data

About TransUnion^® (NYSE: TRU) 

TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing an actionable picture of each person, stewarded with care, so they can be reliably represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good^®.

TransUnion^® provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people in more than 30 countries. Our customers in Canada comprise some of the nation’s largest banks and card issuers, and TransUnion^® is a major credit reporting, fraud, and analytics solutions provider across the finance, retail, telecommunications, utilities, government, and insurance sectors.

For more information visit: www.transunion.ca

TransUnion today released the findings of its Q2 2023 Credit Industry Insights Report (CIIR), revealing a consistent rise in credit demand among Canadian consumers who are seeking additional financial flexibility due to the high cost of living, despite a slowdown in inflation¹.

As part of the CIIR, TransUnion maps consumer credit market health with its Credit Industry Indicator (CII). The CII is a country-specific measure of consumer credit health trends, focusing on four pillars: demand, supply, consumer behaviour and performance. The CII for Q2 2023 in Canada was 106 in June 2023, up 1.6 points compared to the same period in 2022.

Graph 1: Canadian Credit Industry Indicatorⁱ

Source: TransUnion Canada consumer credit database.

(i) A lower CII number compared to the prior period represents a decline in credit health, while a higher number reflects an improvement. The CII number needs to be looked at in relation to the previous period(s) and not in isolation. In June 2023, the CII of 106 represented an improvement in credit health compared to the same month prior year (June 2022) and a slight increase in credit health compared to the prior quarter (December 2022).

The current CII levels are consistent with pre-pandemic levels. The slight year-over-year (YoY) increase was primarily driven by increased demand for credit, offset by continued deterioration in credit performance, which has been an ongoing trend for three consecutive months as interest rate pressures have affected many Canadian households.

“Canadians, like the economy, remain persistently resilient,” said Matthew Fabian, director of financial services research and consulting at TransUnion in Canada. “However, the combined pressure of a high cost of living and elevated interest rates has created a payment shock, as the cost of debt has grown even heavier for some Canadian households. While some financial pressure has been offset through continued savings growth and strong employment, many Canadian consumers have accessed credit as a means to short-term liquidity.”

The number of Canadian consumers holding an outstanding credit balance increased 3.3% from Q1 2023. While the number of consumers taking on higher credit balances rose across all risk tiers, subprime consumers – the riskiest segment – experienced an 8.9% YoY growth rate.

Table 1: Number of Canadian Consumers with an Outstanding Credit Balance

While the number of consumers carrying a credit balance has grown, there has also been an increase in average balances per consumer across credit products. This increase in average balances can be largely attributed to higher spending habits and increased interest rates on variable-rate loans. Card balances rose the most, with the average consumer holding just over $4,000 in card balances – up 9% from prior year. This increase was driven by higher spend rates – the average consumer spent $2,100 on their cards² in Q2 2023, up 1.5% from prior year, while below prime consumers spent $1,300, up 4% YoY. As spend increased, the amount that consumers paid against their card balances each month reduced by 2.8% YoY.

Table 2: Average Balance per Canadian Consumer

Demand for new credit continued to grow. In Q2 2023, the volume of inquiries (applications) for new credit products grew 17% from prior year, a trend consistent across the borrower risk spectrum. Credit demand from prime and below* consumers grew 15%, and demand from better than prime consumers grew by 12%.

Increased consumer demand was matched with lender supply as origination volumes also grew 12% YoY. The risk appetite of lenders has increased, as below prime originations grew 16% while prime and better originations grew by 6%.

Higher interest rates drive up minimum payments, leading to signs of payment shock

The total debt of Canadian households (including mortgage and non-mortgage loan debt) increased 4.2% (+$94.8 billion) YoY and reached a total of $2.3 trillion in Q2 2023. This was driven primarily by mortgage loan debt, which saw a steady pace of growth for the fifth consecutive quarter at 9% YoY, as existing home sales rebounded.

While non-mortgage balances overall fell by 7% in Q2 2023, credit cards stood out as an exception, with balances growing 14% (+$12.9 billion) from prior year. The concentration of balances skewed toward lower risk segments, with over 80% of outstanding credit card debt held by prime and better consumers. Mortgage payments also continued to increase, as the average monthly installment on a mortgage in Canada grew 15% YoY to $2,071 per month.

Table 3: Change in Average Minimum Monthly Payments

“This additional minimum payment has stressed some household finances, forcing consumers to make trade-offs in terms of how much they can allocate to cover additional debt,” Fabian explained. “The sudden and often unexpected rise in minimum payment is referred to as payment shock and can have dramatic consequences as some consumers are forced to decide how to allocate discretionary income and, in some cases, which bills or debt to pay.”

Delinquency picture remains

While Canadian consumers remain generally resilient, with higher savings rates, worsening delinquencies were observed in some consumer and product segments.

The largest increase in delinquency, of 13 basis points (bps), was among Generation Z (born 1994 to 2010) consumers. This is likely because Generation Z borrowers are early in their careers and may not yet have the levels or stability of income that enables them to weather the current environment of higher inflation and interest rates as easily.

Additionally, Generation Z consumers have displayed higher growth rates in origination volumes  than other generations over the past few quarters, as many of them enter the market for the first time. For some, this is the first time they have experienced a high interest rate environment, and they may be experiencing some payment shock.

The report also underscored differences between recent vintages (groups of borrowers who took out credit in the same specific time period). In comparing delinquency rates between borrowers who opened loans in 2020, 2021 and 2022, the report noted higher delinquencies in the more recent groups after 12 months, potentially due to higher interest rates and inflationary pressure.

Coming out of the pandemic, delinquency rates for subprime consumers increased by 37%, and by 56% for near prime consumers. These groups traditionally exhibit higher delinquency rates due to their riskier profiles, yet recent years have seen a rise in default rates among them compared to prime and above consumers, who are approaching pre-pandemic delinquency rates.

Unsecured credit products like cards and personal loans have seen more drastic increases in delinquency. Given that these loans are offered to consumers in higher risk tiers, are typically easier to obtain, and are unsecured forms of debt, they are generally prone to higher levels of delinquency. As originations to below prime consumers accelerate, these consumers may feel financial pressure in a high-rate environment.  As long as the current macroeconomic conditions of elevated inflation and higher interest rates persist, a segment of consumers will likely continue to experience financial pressures.

“Lenders have held steady in balancing their risk strategies in the current macroeconomic context, but this environment continues to place some Canadians under stress, as balances grow and minimum payments are higher than before,” Fabian explained. “Lenders should maintain a growth strategy that allows for financial inclusion, by focusing on resilient consumers and helping those vulnerable to economic shocks.”

For more information about the Q2 2023 Credit Industry Insights Report, please click here.

#ends

¹ Country Economic Forecast, Oxford Economics, July 17, 2023

² Spend is a calculated metric derived by TransUnion using available credit data

*According to TransUnion CreditVision^® risk score: Subprime = 300-639; Near prime = 640-719; Prime = 720-759; Prime plus = 760-799; Super prime = 800+

About TransUnion^® (NYSE: TRU)

TransUnion^® is a global information and insights company that makes trust possible in the modern economy. We do this by providing an actionable picture of each person so they can be reliably represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good^®. TransUnion^® provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people in more than 30 countries. Our customers in Canada comprise some of the nation’s largest banks and card issuers, and TransUnion^® is a major credit reporting, fraud, and analytics solutions provider across the finance, retail, telecommunications, utilities, government and insurance sectors.

For more information or to request an interview, contact:

Contact: Alex Wilcox

E-mail: Alex.Wilcox@ketchum.com

Telephone: +1 705-878-6815

Q2 2023 TransUnion Canada Consumer Pulse study key findings:  

• Top 3 financial concerns: inflation (47%); increasing house prices (14%); possibility of recession (11%)
• 32% anticipate being unable to pay their current bills and loans in full
• 15% of Canadians cut back on retirement savings
• 37% said large purchases will decrease significantly  
•  24% plan to apply for credit or refinance in next 12 months
•  42% are optimistic about their financial outlook over the next 12 months
•  48% targeted by fraud over last 3 months
•  85% feel it’s important to check credit reports

TransUnion’s most recent Consumer Pulse study* shows that almost half (43%) of Canadians felt their household finances were worse than planned. Nearly a third (32%) anticipate they will be unable to pay their bills and loans in full, of which 22% plan to borrow from a friend or family member to help pay them off. Around one third (36%) of study respondents believe that Canada is currently in a recession, and 27% believe that Canada will enter a recession in the second half of 2023. These prevailing concerns over financial headwinds and threat of a possible recession is affecting consumer spending, saving behaviours and appetite for taking on more debt, reveals TransUnion’s new study.

“While there is a mixed level of confidence in Canadians’ financial outlook, macroeconomic pressures remain top-of-mind for many,” said Matt Fabian, director of financial services research and consulting at TransUnion Canada. “Concerns around inflation, rising interest rates, housing affordability, and the perceived threat of a potential recession are affecting how Canadians are managing their household finances. Overall, the study indicates that Canadians are taking a prudent approach in managing their finances in the face of economic uncertainty, including reining in spending, stockpiling savings, and managing their debt levels. Not just in view of today’s financial challenges – but in preparing for what’s ahead.”   

Canadians brace for a potential recession by stockpiling savings.

Canada saw record levels of stockpiled savings throughout the pandemic; while much of these savings have since been utilized, Canadians still appear to be in savings mode.

• Over one third (34%) said they are preparing for a possible recession by building up savings.
• Gen Z and Millennials are more likely to build up savings at 50% and 39%, respectively.
•  More than a third (36%) of Canadians say they believe Canada is currently in a recession; this compares to 27% who report they do not believe Canada will enter a recession before the end of 2023.

Inflationary and interest rate pressures dominate Canadians’ financial health concerns.

Cost-of-living price increases continue to impact consumers with just over half (57%) who feel their household finances are as good or better than planned; down slightly from 59% in Q2 2022. Conversely, 43% report that their household finances are worse than planned.

Macroeconomic pressures impact spending behaviours.

One in four Canadians (24%) report having had an income increase over the last three months; just over half (54%) report their income level stayed the same, and 23% say their income decreased. A further 34% anticipate their income will increase over the next 12 months.

While steady or increasing income levels may help mitigate the effects of inflation and increased debt levels, concerns over cost-of-living and interest rate increases continue to impact spending behaviours for many consumers. Shifts in household spending included:

• Cutbacks on discretionary spending (54%); versus increase (10%)
• Canceled or reduced digital services (21%); versus increase (7%)
•  Canceled subscriptions or memberships (26%); versus added (6%)

Rising interest rates impacting Canadians approach to debt and savings management.

Debt levels are a key concern for Canadians, with higher interest rates affecting decisions to apply for additional credit or refinance in the next 12 months (57%). Almost a quarter of Canadians (24%) indicate they plan to apply for credit or refinancing in the next 12 months. Of those who plan to apply, credit cards are the most common product (46%), followed by personal loans (26%) and mortgages (18%).

There has been an increase in inquiry volumes, especially for below Prime consumers (those who may have lower credit scores and considered higher risk for lenders) who may be seeking additional credit to help manage short-term cash flow or liquidity challenges.

Other shifts in how Canadians are managing debt and savings over the last three months include:

•  Saved more in emergency fund (19%)
• Pay down debt faster (17%)
• Cut back on savings for retirement (15%); versus saved more (12%)
•  Increased usage of available credit (13%)
• Used retirement savings (8%)

Mixed level of consumer confidence for financial outlook.

While 42% of Canadians are optimistic about their finances over the next 12 months (up 2 percentage points from Q2 2022), the study indicates that 31% feel pessimistic about their financial outlook. Optimism is strongest among Boomers (up 10%) and weakest among Millennials (down 5%).

Despite this optimism, 55% of Canadians don’t feel their income is keeping pace with the rate of inflation. Inflationary pressures are the number one concern affecting household finances over the next 6 months for 47% of Canadians, followed by increasing house prices (14%) and possibility of a recession (11%).

While 68% of Canadians say they expect to be able to pay their bills in full, the study indicates that nearly one third (32%) are not confident in their ability to pay their bills in full. Of this group, 38% plan to just pay partial payments, and 22% plan to borrow from a friend or family member to help pay their bills or loans.

Canadians leverage credit monitoring to fight an increase in fraud attempts.

While almost half (48%) of surveyed Canadians say they were targeted by a fraud scheme in the last 3 months, 80% are concerned about cyber security threats. Credit card fraud (51%) and identity theft (49%) are the two biggest cyber threat concerns among Canadians. However, 39% report not having taken any action in response to their threat concern. Almost half of this group (49%) cite they do not know what actions to take.

As fraud and cyber breaches continue to make headlines, TransUnion has seen a surge in Canadians enrolling in credit monitoring to help mitigate financial fraud risks. The study shows that 85% of surveyed Canadians feel it is important to check their credit reports, and doing so to help manage fraud risks is a top reason, with over a third (37%) checking it at least once a month.  

The complete Consumer Pulse study can be viewed here.  

*The most recent Consumer Pulse study includes a survey of 956 Canadian consumers conducted between May 4-17, 2023.  

About TransUnion (NYSE: TRU)  

TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing a comprehensive picture of each person so they can be reliably and safely represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good.^®

TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people in more than 30 countries. Our customers in Canada comprise some of the nation’s largest banks and card issuers, and TransUnion is a major credit reporting, fraud, and analytics solutions provider across the finance, retail, telecommunications, utilities, government and insurance sectors.  

For more information visit: www.transunion.ca

For more information, please contact:

Hyunjoo Kim

Director, Corporate Affairs and Communications

hyunjoo.kim@transunion.com

(289) 962-2376

Identity Exchange can help businesses expand their customer base. New-to-credit (NTC) consumers – such as young Canadians who are early in their credit journeys, or those who are new to Canada – often face challenges obtaining credit products, despite being credit hungry and intentional about managing new credit products carefully, according to a recent global study by TransUnion. In Canada, 983,000 consumers opened their first credit product and became NTC during 2021, with 81% of these opening a credit card as their first product. When assessing the creditworthiness of a consumer, confirming their identity is a key first step, and in a digital journey, credit history is often used. When there is little to no credit history, businesses may decline the application or be forced to use more costly manual processes that create friction for authentic customers to confirm identity. A difficult digital experience can impact consumers from getting the credit they need.

With Identity Exchange, businesses can proactively assess multiple aspects of a customer’s identity, analyzing against millions of data points, such as credit bureau data, as well as the unique behaviours of each individual – activity that is uncharacteristic for an individual (for example, applying for 10 credit cards in 48 hours) – to determine in real-time the likelihood that the customer is actually a fraudster.

Each business faces unique challenges when it comes to identity fraud, and as more consumers engage digitally, detecting fraudulent transactions and verifying identities quickly and accurately is crucial. TransUnion’s analysis revealed that from 2019 to 2022, the number of digital transactions rose by 103% in Canada, and fraud attempts on digital transactions rose by 189%. Fraudsters are becoming more sophisticated and the traditional “checklist” approach of only checking individual identity elements is inadequate because each piece of data may be technically correct on its own (a legitimate address, phone number, etc.). Instead, organizations now need to embrace an integrated view of identity.

“Identity fraud in its various forms is one of the most challenging issues faced by businesses today – but it is a preventable crime. Identity Exchange proactively, intelligently and continuously applies data, creating friction on suspicious transactions and exposing fraudulent accounts to help mitigate risk before fraud losses can occur,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada. “By having a clearer picture of who is behind the transaction, businesses can drive fraudsters away, drive better experiences, and drive stronger growth.”

About Identity Exchange

Designed with multiple integration options, Identity Exchange delivers the ability to assess identity risk against a broad set of data to help drive fraudsters away, drive better experiences, and drive stronger growth.

To learn more, visit: transunion.ca/product/identity-exchange

About TransUnion^® (NYSE: TRU)

TransUnion^® is a global information and insights company that makes trust possible in the modern economy. We do this by providing an actionable picture of each person, stewarded with care, so they can be reliably represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good^®.

TransUnion^® provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people in more than 30 countries. Our customers in Canada comprise some of the nation’s largest banks and card issuers, and TransUnion^® is a major credit reporting, fraud, and analytics solutions provider across the finance, retail, telecommunications, utilities, government, and insurance sectors.

For more information visit: www.transunion.ca

For more information, please contact:

Hyunjoo Kim

Director, Corporate Affairs and Communications

hyunjoo.kim@transunion.com

(289) 962-2376

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Les entreprises canadiennes peuvent stimuler leur croissance et réduire les risques de fraude d’identité grâce à Correspondance d’identités TruValidate de TransUnion^MD

TransUnion^MD (NYSE: TRU) a étendu Correspondance d’identités TruValidate à tous les secteurs d’activité au Canada pour aider les institutions financières, les émetteurs de cartes de crédit, les entreprises du secteur de la technologie financière, les fournisseurs de télécommunications et d’autres entreprises à assurer la croissance de leurs activités, tout en combattant la fraude grâce à une nouvelle approche à plusieurs niveaux de la gestion du risque et de la vérification de l’identité en instance de brevet. Combinant des analyses avancées et l’apprentissage automatique, Correspondance d’identités est une solution dynamique qui évalue de manière proactive le risque de fraude d’identité, par exemple, au cours d’un processus de demande lorsque les consommateurs sollicitent des prêts, des cartes de crédit ou des contrats de téléphonie, pour permettre aux entreprises d’approuver avec plus de confiance les clients authentiques.  Les premiers utilisateurs de la solution ont bénéficié d’une acquisition accrue tout en prévenant la fraude.

Correspondance d’identités peut aider les entreprises à élargir leur clientèle. Les nouveaux consommateurs de crédit tels que les jeunes Canadiens qui en sont au début de leur parcours de crédit ou les nouveaux arrivants au Canada ont souvent des difficultés à obtenir des produits de crédit, bien qu’ils soient avides de crédit et qu’ils aient l’intention de gérer soigneusement les nouveaux produits de crédit, selon une récente étude mondiale de TransUnion. Au Canada, 983 000 consommateurs ont ouvert leur premier produit de crédit et sont devenus des nouveaux consommateurs de crédit au cours de l’année 2021, 81 % d’entre eux ayant ouvert une carte de crédit comme premier produit. Lors de l’évaluation de la solvabilité d’un consommateur, la confirmation de son identité est une première étape clé et, dans un parcours numérique, l’historique de crédit est souvent utilisé. Lorsque les antécédents en matière de crédit sont faibles ou inexistants, les entreprises peuvent refuser la demande ou être obligées d’utiliser des processus manuels plus coûteux qui créent des frictions pour les clients authentiques afin de confirmer leur identité. Une expérience numérique difficile peut empêcher les consommateurs d’obtenir le crédit dont ils ont besoin.

Avec Correspondance d’identités, les entreprises peuvent évaluer de manière proactive plusieurs aspects de l’identité d’un client en analysant des millions de points de données tels que les données des agences d’évaluation du crédit ainsi que les comportements uniques de chaque individu – une activité qui n’est pas caractéristique d’un individu (par exemple, demander 10 cartes de crédit en 48 heures) – afin de déterminer en temps réel la probabilité que le client soit en fait un fraudeur.

Chaque entreprise est confrontée à des défis uniques en matière de fraude d’identité et comme de plus en plus de consommateurs sont numériquement actifs, il est crucial de détecter les transactions frauduleuses et de vérifier les identités rapidement et avec précision. L’analyse de TransUnion a révélé qu’entre 2019 et 2022, le nombre de transactions numériques a augmenté de 103 % au Canada, tandis que les tentatives de fraude sur les transactions numériques ont augmenté de 189 %. Les fraudeurs sont de plus en plus sophistiqués et l’approche traditionnelle de la « liste de contrôle » consistant à ne vérifier que les éléments d’identité individuels est inadéquate, car chaque donnée peut être techniquement correcte en soi (une adresse légitime, un numéro de téléphone, etc.). Au contraire, les organisations doivent désormais adopter une vision intégrée de l’identité.

« L’usurpation d’identité sous ses différentes formes est l’un des problèmes les plus épineux auxquels sont confrontées les entreprises aujourd’hui, mais il s’agit d’un crime évitable. Correspondance d’identités applique les données de façon proactive, intelligente et continue, créant une friction sur les transactions suspectes et exposant les comptes frauduleux pour aider à atténuer les risques avant que les pertes dues à la fraude ne se produisent », a déclaré Patrick Boudreau, chef des solutions de gestion de l’identité et de lutte contre la fraude à TransUnion Canada. « En ayant une vision plus claire de qui se cache derrière la transaction, les entreprises peuvent éloigner les fraudeurs, améliorer l’expérience et renforcer la croissance. »

À propos de Correspondance d’identités

Conçu avec plusieurs options d’intégration, Correspondance d’identités permet d’évaluer les risques liés à l’identité par rapport à un large éventail de données afin d’éloigner les fraudeurs, d’améliorer l’expérience et de renforcer la croissance.

Pour en savoir plus, consultez la page transunion.ca/fr/product/echange-d-identites

À propos de TransUnion^MD (NYSE : TRU)

TransUnion^MD est une entreprise mondiale de renseignements et de connaissances qui crée un climat de confiance dans l’économie moderne. Nous y arrivons en fournissant un portrait de chaque personne, géré avec soin, comprenant des renseignements et des connaissances utiles afin qu’elle soit représentée de manière fiable sur le marché. Par conséquent, les entreprises et les consommateurs peuvent effectuer des opérations en toute confiance et réaliser de grandes choses. Nous appelons cela l’information au service du bien^MD.

Présente dans plus de 30 pays, TransUnion^MD offre des solutions qui aident à créer des occasions de développement économique, d’excellentes expériences et la prise en charge personnelle pour des centaines de millions de personnes. Nos clients au Canada comprennent certaines des plus grandes banques et sociétés émettrices de cartes de crédit du pays et TransUnion^MD est un important fournisseur de solutions en matière de fiches de crédit, de fraude et d’analyse dans les secteurs de la finance, du commerce de détail, des télécommunications, des services publics, du gouvernement et des assurances.

Pour plus d’informations, consultez le site www.transunion.ca/fr

Pour plus d’informations, veuillez contacter :

Hyunjoo Kim

Directrice, Affaires et communications de l’entreprise

hyunjoo.kim@transunion.com

289 962-2376

TransUnion today released the findings of its Q1 2023 Credit Industry Insights Report (CIIR), which shows that the Canadian credit market remains resilient despite the current high cost of living and elevated interest rates.

As part of the CIIR, TransUnion maps consumer credit market health with its Credit Industry Indicator (CII). The CII is a country-specific measure of consumer credit health trends, focusing on four pillars: demand, supply, consumer behaviour and performance. The CII for Q1 of 2023 in Canada reached 106 in March 2023, hitting close to the pre-pandemic level observed in March 2019, and slightly above the prior year level in March 2022.

Canadian Credit Industry Indicator Q1 of 2023ⁱ

Source: TransUnion Canada consumer credit database.

(i)              A lower CII number compared to the prior period represents a decline in credit health, while a higher number reflects an improvement. The CII number needs to be looked at in relation to the previous period(s) and not in isolation. In March 2023, the CII of 106 represented an improvement in credit health compared to the same month prior year (March 2022) and a slight increase in credit health compared to the prior quarter (December 2022).

The slight year-over-year (YoY) increase in the CII was driven by a 3.1% increase in the number of consumers carrying a balance from the previous quarter (Q4 2022), as well as continued growth in consumer credit balances. The positive impact from overall balance growth was slightly offset by slowing overall demand for new credit.

Origination growth and increased credit participation drove increased balances

As the cost of living rose, many Canadians turned to credit to alleviate financial pressures. Canadians continued to build debt, as total outstanding balances across all products increased by 5.6%, reaching a new record of $2.32 trillion. While overall debt continued to rise in Canada, it is important to understand the composition of the increased balances.

Credit participation (the number of Canadians with access to credit) grew by 2.9% YoY, as the number of Canadians with access to credit rose to 30.6 million in Q1 2023. At the same time, the number of consumers carrying a credit balance rose 3.1% YoY in Q1 2023. While the number of credit-active consumers increased across most risk tiers, the number of subprime consumers accounted for the largest increase, growing at 8.3% YoY. While this riskier segment had the highest rate of growth, prime and better consumers still represent nearly three-quarters of total consumers with a balance, indicating a relatively healthy risk distribution of the consumer credit population.

Consumer with a Balance by Risk Tier, as of Q1 2023

Another key contributor to the increase in overall debt is the growth in origination volumes – i.e. consumers acquiring additional credit products. Origination volumes increased 6.2% YoY, primarily driven by a surge in credit card originations to new-to-credit consumers (a combination of Gen Z consumers entering the credit market and new Canadians) which grew by 85% YoY in 2022. Overall, card originations were 20% higher YoY in Q4 2022, driven by a 24% increase in originations by prime and above consumers, with originations to below prime consumers having increased by 9% YoY. Prime and above consumers accounted for two-thirds of all new card originations during 2022.

Mortgage origination, which experienced record growth rates through 2021 and early 2022, continued to decline, dropping 32% YoY as increasing interest rates significantly slowed demand for new mortgages, especially in the refinance market.

As credit activity increased, performance moved closer to pre-pandemic levels

Higher overall credit balances as well as higher interest rates also drove higher minimum monthly payment obligations, requiring many consumers to direct additional disposable income to cover the minimum required payments – particularly on mortgages and lines of credit. Both mortgages and lines of credit are particularly sensitive to interest rate changes, and rising rates continue to exert pressure on these borrowers. The average line of credit monthly payment due increased to $436 (+43% YoY) and the average monthly mortgage payment rose to $2,032 (+16% YoY). The impact of rate increases will continue to put pressure on mortgage borrowers over the next year as homeowners open or renew their mortgage terms at higher rates.

While higher balances and rising interest rates have increased payment obligations, aggregate excess payment (the amount consumers pay on their revolving accounts over the minimum required) recorded 7% higher YoY levels for below prime consumers and 11% YoY higher levels for prime and better consumers in Q1 2023. These increases indicate that consumers are continuing to pay more than the minimum required – the average payment for credit cards is 2.6x over the minimum required. This is a positive sign indicating healthy consumer behaviors towards their payment obligations.

As the Canadian market has expanded and more consumers have entered the credit market and built balances, a corresponding uptick in delinquency would be expected. Overall consumer-level serious delinquency (the percentage of consumers 90 or more days past due on any account) increased by 9 bps to 1.57%; however, it is important to note that despite this increase, overall delinquency levels remain below pre-pandemic levels.

Bankcard serious consumer-level delinquency rates (90+ DPD) continued to increase, up 8 bps from prior year to 0.76%. It is important to take into account the significant origination growth seen over the past several quarters as a driving factor of this increase.

Unsecured personal loan delinquencies also continued to trend higher: serious consumer-level delinquency rates (60+ DPD) have exceeded pre-pandemic levels, up 71 bps YoY to 2.09% in Q1 2023 (consumer 60+ DPD delinquency was 1.35% in Q1 2019). Recent origination history for this product has been heavily weighted to below prime consumers, which is likely driving worsening performance.

Serious account-level delinquency (60+ DPD) for auto reached 0.78% in Q1 2023, up 10 bps YoY, which is a relatively low rate despite the increase, and still below pre-pandemic levels.

“Overall, the financial position of Canadian credit consumers improved coming out of the pandemic, bolstered by higher savings accumulated through the pandemic and supported by a strong labour market,” said Matt Fabian, Director of financial services research and consulting at TransUnion in Canada.

“However, the longer the current conditions of elevated inflation and higher interest rates persist, the more likely it is that a segment of more vulnerable consumers may increasingly feel the pinch. Especially impacted may be variable-rate mortgage-holders as they reach their trigger rate, and fixed-rate mortgage-holders near the end of their terms. As available disposable incomes become more stretched, we expect a segment of consumers will be more likely to miss payments, and as a result, that delinquency rates will rise,” he added. “However, we expect any rise in delinquency rates to be moderate and in line with increased credit activity.”

What lies ahead for Canadian consumers in 2023 and into 2024?

Given the economic uncertainty and to provide insights into what to expect for credit market health, TransUnion recently forecasted origination, balance and delinquency trends for the remainder of 2023 to Q1 2024, drawing on its extensive data and research resources.

“We anticipate the next 12 months to be characterized by a ‘continued resiliency meets financial fragility’ mindset. Trends for 2023 are likely to be mixed, based on consumers’ risk profiles and the uneven impact of higher inflation and interest rates, offset by softer than anticipated activity, recession, and slight recovery in early 2024, as well as a strong labour market,” Fabian said.

TransUnion forecasts growth in new account originations across all products through 2024, driven by a combination of increased demand and a stabilizing interest rate environment. The forecast anticipates lenders to continue to pursue profitable growth, i.e. that there will be continued expansion in lending with strategically managed growth and risk.

The credit card segment will remain very competitive as issuers compete for share with new offers in the market. TransUnion forecasts continued growth for credit cards with strong origination volumes through to Q1 2024 for both prime and below (up +3.5% YoY) as well as above prime segments (+11.8% YoY), and expects to see growth in balances. The forecast shows a slight uptick in delinquency, back to pre-pandemic levels, to 2.19% in Q1 2024 (+16 bps YoY).

Auto loan growth is expected to be skewed toward riskier borrowers – prime and below risk tiers – with originations in that segment growing 4.3% as vehicle inventories continue to return to normal. This demand and the continued shift toward higher average purchase price will drive loan sizes up by 2.8% for prime and below in Q1 2024, while above prime balance growth is likely to remain relatively flat YoY. Delinquency rates are expected to improve slightly in the prime and below segment – likely down 14 bps YoY to 2.27% – as more recent acquisitions have skewed away from below prime borrowers.

The prospect of interest rates holding steady and potentially lowering into 2024 is expected to help revitalize the personal loan market, as a more favourable interest rate environment will allow lenders to expand and grow their portfolios following their caution coming out of the pandemic. Acquisition is forecast to grow by 16% YoY in Q1 2024, driven by a return to below prime lending. In addition, balance growth is likely to be up 7% for below prime consumers and up 29% for prime and better. This increased activity is likely to drive higher delinquencies, with serious delinquency rates forecast to rise 13 bps to 2.27%.

As the Bank of Canada pauses interest rate hikes, a resurgence in housing demand combined with continued low inventory will drive increased activity in Canada’s housing market, which will in turn drive mortgage origination volume and balance growth. TransUnion expects a 38% increase in origination volumes from the first quarter of 2023 to the first quarter of 2024, with the concentration of new originations skewed to prime and better consumers. In line with home values, outstanding mortgage average balance growth of up to 5% is also forecast in the first quarter of 2024.

For more information about the Q1 2023 Credit Industry Insights Report, please click here.

*According to TransUnion CreditVision® risk score: Subprime = 300-639; Near prime = 640-719; Prime = 720-759; Prime plus = 760-799; Super prime = 800+

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing an actionable picture of each person so they can be reliably represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good®. TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people in more than 30 countries. Our customers in Canada comprise some of the nation’s largest banks and card issuers, and TransUnion is a major credit reporting, fraud, and analytics solutions provider across the finance, retail, telecommunications, utilities, government and insurance sectors.

For more information or to request an interview, contact:

Contact: Emma Tiessen

E-mail Emma.Tiessen@ketchum.com

Telephone 647-523-1594

TransUnion (NYSE:TRU) has promoted Juan Sebastian D’Achiardi to Regional President of Canada. D’Achiardi will lead TransUnion’s Canadian business, setting the strategic vision for the country while focusing on driving continued growth and building on strong client relationships. He will ensure TransUnion continues to innovate valuable customer solutions that help create greater opportunities, and build trust between consumers and businesses. As part of his role as Regional President, he will also oversee Trinidad and Tobago.

D’Achiardi brings significant experience in financial services, leadership and strategy to the role. For the last six years, he has been a part of TransUnion’s international business; first, as Senior Director, Strategy and Planning, LATAM, and most recently, as Head and Regional Manager for our LATAM Countries. D’Achiardi successfully led the expansion of TransUnion’s business across nine LATAM geographies, delivering accelerated growth, establishing long-term strategic plans, driving innovation with tangible value for our customers and markets, spearheading service model improvements, and increasing engagement of cross-functional associates.

“During his time with TransUnion, Juan has demonstrated exceptional leadership and a drive for creating innovative business solutions that bring tangible value to our customers,” said Todd Skinner, President, International. “Juan has been a strong asset to our company, and now as Regional President of Canada, I’m confident he’ll be able to make even greater contributions to TransUnion.”

Before joining TransUnion, D’Achiardi was an investment banker at the largest boutique investment bank in Colombia, playing a critical role in TransUnion’s acquisition of CIFIN-Colombia operations in 2016. He also held a number of senior roles, executing and evaluating cross-border, sell-side and buy-side M&A projects across multiple industries totaling over US$2.2 billion. D’Achiardi holds a master of business administration from IE Business School (Madrid, Spain), a master of science in management from NEOMA Business School (Rouen, France) and a bachelor of science in business administration from CESA Business School (Bogota, Colombia).

“TransUnion’s team in Canada has an impressive track record of building innovative solutions for customers, and I’m proud of the incredible momentum we’ve built to date,” said D’Achiardi. “I’m excited for the opportunity to lead our talented teams, and going forward, we will remain committed to strengthening trust between businesses and consumers.”

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing an actionable picture of each person, stewarded with care, so they can be reliably represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good®.

TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people in more than 30 countries. Our customers in Canada comprise some of the nation’s largest banks and card issuers, and TransUnion is a major credit reporting, fraud, and analytics solutions provider across the finance, retail, telecommunications, utilities, government, and insurance sectors.

For more information visit: www.transunion.ca

Despite a return to something more closely resembling pre-pandemic levels in 2022, the TransUnion (NYSE: TRU) 2023 State of Omnichannel Fraud Report found that digital fraud continues to rise globally. TransUnion’s analysis also revealed that 3% of all consumer transactions originating from Canada in 2022 were suspected to be fraudulent, compared to 2% in 2019. At the same time, the number of transactions conducted digitally has markedly risen in the last few years by 103% in Canada. This means that the total volume of suspected digital fraud attempts has increased dramatically. Globally, such attempts have increased by 80% from 2019 to 2022, compared to 189% for digital transactions originating in Canada during that same time. 

According to proprietary insights from TransUnion’s global intelligence network and a specially commissioned consumer survey, the pivot to increasingly digital transactions since the beginning of the pandemic means the overall risk to individuals and organizations is even greater than it was pre-pandemic.

“Digital fraud trends point to industries that saw significant growth in consumer digital engagement,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada. “At the same time, the pandemic crystallized the reality that fraudsters focus their efforts to prey on organizations and institutions that have direct access to money, products or services with easily transferable monetary value. In Canada, we have seen dramatic increases in digital fraud attempts within the retail, logistics, financial services, and travel and leisure sectors. Staying ahead of these constantly evolving and ever more sophisticated fraudsters is a challenge that no company or organization is exempt from.”

Credit Card Fraud is Most Common, but ACH/Debit and Synthetic Identity Fraud are Rising

Source: TransUnion TruValidate™

Top Industries Targeted by Suspected Digital Fraud Include Retail, Logistics, and Financial Services in Canada

For transactions originating from Canada, the analysis showed that the retail sector saw the most significant rise in suspected digital fraud, with an increase of 179% from 2019 to 2022. This is followed by the logistics sector (123% increase), financial services (28% increase), and travel and leisure (20% increase). Conversely, video gaming saw the biggest decrease in suspected digital fraud during this timeframe (-81%), followed by telecommunications (-71%), gaming - such as online sports betting, poker, etc. (-39%), communities - online dating, forums, etc.(-29%), and insurance (-23%).

Globally, the gaming and retail industries saw the highest rate of suspected digital fraud at 7.5% and 7.2%, respectively. These were followed by video gaming at 5.4%, financial services at 4.2% and communities (i.e., online dating and forums) at 4.0%.

However, the highest rate of growth globally since 2019 was observed in the travel & leisure industry. This group saw a 117% increase in suspected digital fraud globally as more and more consumers looked to resume traveling following the pandemic period.

Retail and Logistics Saw The Highest Suspected Digital Fraud Rate between 2019 and 2022

Source: TransUnion TruValidate

Canadian Consumers Regularly Face Fraud Across a Range of Communications Platforms

TransUnion’s analysis also found that a large percentage of people are being impacted by fraud attempts, and across a wide range of communications vehicles. In a TransUnion-commissioned consumer survey across 18 countries and regions globally, 52% of respondents indicated that they were targeted by fraud via email, online, phone call, or text messaging in the three months beginning September 2022.

In Canada, 57% of surveyed consumers said they had been targeted by fraud attempts via those communications channels over the same time period.

“The explosion of digital transactions, the accelerated adoption of digital technologies, and increasing appetite for faster access to funds/credit, have led to an increase in fraud losses, particularly in digital channels,” said Naureen Ali, vice president of product management at Transunion. “Consumers are expecting organizations to protect their identities and online accounts, and those companies that do not adequately honor those preferences may lose business as a result.”

The study explored other types and channels of fraud. For instance, TransUnion determined that while the vast majority (85%) of calls received by its U.S. financial services call center customers were from mobile phones in 2022, just 14% of all high-risk calls were made from them last year. Conversely, for the 3% of U.S. financial services call center calls that were made from non-fixed Voice over Internet Protocol (VoIP) –a phone number that isn’t associated with a physical address –62% of all high-risk calls into the call center came from them last year making it the riskiest channel for the call center.

Data Breaches Fuel Identity Engineering, Record Balances Attributed to Synthetic Identities

The study also examined the volume and severity of data breaches over the course of 2022 and compared them to previous years, using publicly available data analyzed by Sontiq^TM, a TransUnion company.

Results showed that the number of data breaches in the U.S. increased by 83% from 2020 to 2022. In addition to the overall increase in volume, the severity of data breaches also rose, reflected in an increase of 6% in Sontiq’s Breach Risk Score over that time period.

These breaches have played a key role in helping to fuel an explosion in identity engineering, with synthetic identities becoming a record-setting problem in 2022. Outstanding balances attributed to synthetic identities for auto, credit card, retail credit card and personal loans in the U.S. were at their highest point ever recorded by TransUnion—reaching $1.3 billion in Q4 2022 and $4.6 billion for all of 2022.

TransUnion came to its conclusions based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate™. The rate or percentage of suspected digital fraud attempts reflect those which TransUnion customers either denied in real time due to fraudulent indicators or determined were fraudulent after reviewing—compared to all transactions it assessed for fraud.

Download the TransUnion 2023 State of Omnichannel Fraud Report to learn more. Specific country and regional data in the report include the United States, Brazil, Canada, Chile, Colombia, Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, Philippines, Puerto Rico, Rwanda, South Africa, Spain, United Kingdom and Zambia.

For more information and insights on global fraud trends, please download the report.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing an actionable picture of each person so they can be reliably represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good®. TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people in more than 30 countries. Our customers in Canada comprise some of the nation’s largest banks and card issuers, and TransUnion is a major credit reporting, fraud, and analytics solutions provider across the finance, retail, telecommunications, utilities, government and insurance sectors. Learn more at transunion.ca

For more information or to request an interview, contact:

Contact:         Emma Tiessen

E-mail              Emma.Tiessen@ketchum.com

Telephone      647-523-1594

In a recent survey, TransUnion (NYSE: TRU) explored the sentiment and behaviours of Canadians in relation to fraud concerns when engaging online with companies, financial service providers, and retailers. The analysis reveals a delicate balance between Canadians wanting to feel their personal and financial information is protected – but without compromising their digital experience. Nearly a third (30%) of Canadians surveyed have switched their online transactions to another website due to fraud or security concerns. In addition, 34%, said they are either extremely or very likely to switch companies to get a better digital experience.

“Our research points to the challenging dynamic that Canadian businesses, financial services providers, and retailers must navigate,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada. “Concerns about fraud risks are top-of-mind for consumers when engaging online – and have significant influence on who and how they choose to transact with. At the same time, consumers have high expectations with the digital experience when engaging with companies and retailers online and can be quick to abandon their shopping cart or online applications if it feels too cumbersome. Canadian companies must walk the fine line of having all the necessary, rigorous risk mitigating process and tools in place to protect their customers, but without comprising their digital experience.”

Factors that Contribute to Canadians Abandoning Websites

Canadian consumers place significant focus on their digital experience when engaging online, with several factors causing them to not return to a website, including:

• Fraud concerns (69%)
• Asking too much information (57%)
• Process taking too long (46%) 
• Site layout being confusing (45%)
• Slow website (42%)
• Not being able to find what they were looking for (40%)
• Not receiving order confirmation post transaction (37%)
• Lack of familiarity with the company (34%)

Factors that Contribute to Canadians Abandoning their Shopping Cart

When online shopping, fraud and/or security concerns is one of the main reasons why Canadian consumers abandon their carts, as well as:

• Shipping costs (69%) 
• Cost of goods (43%)
• Fraud and/or security concerns (40%)
• Payment information not going through correctly (31%)
• Poor experience (24%)
• Too many security challenge steps (15%) 

Expectations when Deciding who to do Business with

Among the qualities or expectations that Canadians consider when deciding which online company to do business with, the following rank as the number one factor:

• Security of personal data (46%)
• Quality of goods or services (22%)
• Cost savings (20%)
• Good digital experience (6%)
• Delivery times (6%)

Considerations that Impact who Canadians choose to Transact with Online 

When choosing who to transact with online, a number of features are considered important by Canadian consumers, including:

• Confidence that personal data will not be compromised (90%)
• Easy payment process (88%)
• Site navigation (87%)
• Ease of log-in authentication experience (86%)
• Ease of filling out forms or applications (86%)
• Ease of setting up a new account or ease of registration (85%)

Contributing Factors for Canadians to Abandon Online Applications

Nearly half (48%) of Canadians have abandoned an online application or form for a financial or insurance product before completing it. This includes the following reasons:

• Too much information was required (52%)
• Process was frustrating (48%)
• Took too much time to fill out the form (42%)
• Didn’t trust that my personal data would be secure (38%)
• Site was too slow (32%)

Canadians’ Actions when Falling Victim to Fraud

Half of Canadians (50%) say they were targeted by at least one fraud scam (via online, email, phone call or text message), but did not become a victim. This compares to 7% who were targeted and became a victim of fraud. The actions that Canadians took when they discovered they were a victim of fraud include:

• Placing a freeze on their credit (55%)
• Contacting impacted companies such as credit card, retailers, etc. (45%)
• Placing a fraud alert on their credit report (41%)
• Contacting a company that compiles and provides credit reports (22%)
• Calling the police (17%)
• Nothing (9%)

“While there is a lot of onus and responsibility on companies to protect their customers against fraud, Canadian consumers must also take active steps to help protect themselves. This includes continuing to be hyper-diligent to avoid succumbing to fraud attempts when receiving suspicious emails, texts or phone calls. If it feels suspicious, it likely is. Canadians must also be diligent about regularly checking their accounts for any suspicious activity, and through establishing and monitoring a credit report with fraud alert capabilities. Services like TransUnion’s credit monitoring and fraud alerts can play a significant role in helping protect Canadians from fraud risks,” Boudreau added.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing an actionable picture of each person so they can be reliably represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good®. TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people in more than 30 countries. Our customers in Canada comprise some of the nation’s largest banks and card issuers, and TransUnion is a major credit reporting, fraud, and analytics solutions provider across the finance, retail, telecommunications, utilities, government and insurance sectors. Learn more at transunion.ca

For more information or to request an interview, contact:

Contact:         Emma Tiessen

E-mail              Emma.Tiessen@ketchum.com

Telephone      647-523-1594