Gen Z Canadians hit hardest by payment fraud

New research from Payments Canada shows that Gen Z Canadians face payment fraud at twice the national average. Almost half of those aged 18 to 24 were targeted in the past year, and more than a quarter suffered financial losses—double the rate for the broader population. The data comes from a survey of 1,500 Canadians conducted between February and March 2026, highlighting how digital habits increase exposure to fraud.

While 30% of the general population reported fraud exposure, the figure rises to 47% for Gen Z. Among affected individuals, 26% of Gen Z respondents lost money, compared with 13% of other Canadians. Stephen Yun, a senior analyst at Payments Canada, explains that younger users encounter different fraud types, including online shopping scams and impersonation schemes, due to their reliance on digital payments and social media.

Unsafe practices worsen the issue. More than one in five Gen Z respondents admitted to sharing banking details via email or text, and 36% reuse passwords across accounts. Less than half create strong passwords, while nearly half store them insecurely on devices or in notebooks. Email and instant messaging were the primary channels used to reach Gen Z fraud targets, cited by 46% and 45% of respondents respectively.

Gen Z’s belief that digital skills protect them is incorrect. Fraudsters exploit their trust in online interactions, using AI-enhanced deepfakes and synthetic identities to create convincing scams. Sixty percent of Canadians say AI-driven fraud makes scams harder to detect, and 32% already struggle to distinguish legitimate payment communications from fraudulent ones. Yun states that younger users, despite their technical abilities, lack awareness of emerging risks.

Financial institutions are enhancing protections. Sixty-three percent of Canadians feel secure with their bank or credit card provider, and 70% of fraud victims who lost money reported the incident. Nearly half of those cases were resolved within days. Canada’s upcoming Real-Time Rail (RTR) payment network, set to launch in the fourth quarter of 2026, will include fraud mitigation features such as recipient verification before transfers. Payments Canada is also part of the Canadian Anti-Scam Coalition, which coordinates fraud prevention efforts across the industry.

The Real-Time Rail’s centralized fraud tools will work alongside individual bank controls to strengthen the payment system.