The holiday shopping season is a gold mine for cybercriminals—and fraudsters are deploying more AI-powered attacks than ever.
There have been over 23,000 reports of fraud in Canada as of September 2025, according to the Canadian Anti-Fraud Centre, with over $500 million stolen. CAFC noted it received 33,854 reports of online fraud so far this year.
The Retail Council of Canada said it expects the average Canadian consumer to spend $972 on holiday shopping this year—up by eight per cent from 2024. Moreover, the council predicted that 40 per cent of holiday spending will occur on Black Friday and 36 per cent on Cyber Monday.
The trends and why they matter
- AI-driven scams are skyrocketing: AI fuels phishing, deepfakes, voice cloning and chatbots that can trick even tech-savvy Canadians. Eighty-six per cent of Canadians believe they can detect a scam, while 25 per cent admit they’ve fallen victim to one, according to a new RBC Fraud Awareness Poll. Bottom line: don’t be overconfident as a shopper.
- Massive surge in attacks: Investment and crypto scams, fake retailer sites and social media deepfake endorsements are all at record-high levels.
- Widespread online retail fraud: According to BMO’s financial crime unit, 2.6 per cent of Canadian online transactions in 2025 were flagged as fraudulent between Thanksgiving and Cyber Monday—a 51 per cent increase from the previous year.
- Impacts are significant and targeted: Seniors and newcomers are particularly susceptible to targeted attacks that use AI-crafted messages and urgent fake requests.
- Fake shopping sites: Visa’s Payment Ecosystem Risk and Control (PERC) team identified a 284 per cent increase in fake and spoofed merchant websites in the four months leading up to the holiday season this year.
As Canadians, what can we do?
- Always be scam-skeptical: If a deal looks too good to be true, it probably is.
- Go direct, don’t click: Don’t use promo links in emails or social feeds; visit official retail sites directly.
- Always verify sellers and payment: Research unknown shops and use a credit card. Never pay by debit card, gift card, crypto or e-transfer on sites that are not verified or legitimate as you may not be covered by your provider for any fraudulent activities.
- Turn on security controls: Use two-factor authentication, enable transaction alerts and update your bank and shopping apps.
- Watch for deepfakes and voice-cloning: Be wary of urgent calls or messages—even if the voice sounds real. Based on the records, just three seconds of your audio is now enough for scammers to clone your voice for fraud.
- Monitor accounts and statements: Check all bank and credit statements frequently and stay on top of them, especially during the holiday season, if you are doing online shopping.
The takeaway
As cyber scams surge and AI-powered deception looks nearly indistinguishable from reality, awareness and vigilance are your best holiday defences. Despite these threats, staying informed and cautious are your best safeguards for a secure and happy holiday season.Read RSM Canada’s latest analysis in The Real Economy Canada and subscribe for more updates.
