AI scams are getting smarter: How Canadians can spot deepfakes and synthetic fraud

This post is sponsored by Equifax.

Artificial intelligence is getting more advanced every day and is used for many purposes, both good and bad. Unfortunately, criminals are harnessing the power of AI to create sophisticated scams that are increasingly difficult to identify.

Scammers are now using deepfake AI, voice cloning, and synthetic identity fraud to impersonate banks, employers, and even family members. These deepfake AI scams can look and sound extremely realistic, which makes fraud prevention harder for Canadians who are just trying to protect their money and personal information.

Synthetic fraud and deepfake AI scams don’t rely on obvious red flags like sloppy emails with typos and fake return addresses. They rely on trust, familiarity, and speed. Understanding how these scams work, the warning signs to watch for, and how to monitor your credit are key steps in learning how to prevent identity fraud in an age of AI scamming.

What is synthetic identity fraud, and how is it different from identity theft?

Synthetic identity fraud happens when criminals create a fake identity using a mix of real and made-up information. This often includes a real Social Insurance Number combined with a fake name, address, or date of birth. Unlike traditional identity theft, where someone steals and uses your full identity, synthetic fraud creates a new identity that appears legitimate.

Because the identity does not fully belong to a real person, this type of bank fraud is harder to detect. It can quietly build credit over time without triggering immediate alerts, which is why many people don’t realize there’s a problem until damage has already been done.

How criminals gather information for AI scamming

Fraudsters collect personal information from many sources. Data breaches, phishing emails, fake job postings, and compromised websites are common starting points. Even information shared publicly on social media can help fill in gaps and make a synthetic identity appear more realistic.

How synthetic identity fraud works behind the scenes

Synthetic identity fraud usually starts small. A fraudster may open a low-limit account or apply for basic credit using the fake identity. Payments are made on time to build trust and establish a positive credit history.

As that history grows, the fraud escalates. Larger loans or credit products may be approved, and eventually the fraudster disappears, leaving unpaid balances behind. When lenders investigate, the real person connected to the SIN may be affected, even though they never applied for the credit in the first place.

The financial impact of these scams is staggering. According to the Canadian Anti-Fraud Centre (CAFC), Canadians lost a jaw-dropping $638 million to fraud in 2024, with over $2 billion lost since 2021.

How do I know if I’m a victim of synthetic identity fraud?

The repercussions of synthetic fraud can show up in several ways. You may see strange charges on your credit card, hard credit inquiries you didn’t authorize, new accounts you don’t recognize, or changes to your credit score without a clear explanation.

You may also notice accounts that list incorrect or mismatched information, such as an unfamiliar address or employer. These details may seem small, but they can be early indicators of a larger fraud issue.

In some cases, victims are contacted by lenders or collection agencies about debts tied to accounts they never opened. Resolving these issues can take time and may temporarily affect your ability to access credit, rent or buy a home, or move forward with other financial plans.

How to prevent identity fraud in the age of deepfake AI

Imagine receiving a phone call from someone who sounds exactly like a family member, saying they’ve been in an accident and need you to send them money right away. In situations like this, it’s easy to let urgency cloud your judgment.

If you receive a request for personal or financial information, take a moment to verify it through a trusted channel. Messages that claim to be from your bank, employer, or even a loved one can feel convincing, especially when deepfake AI or voice cloning is involved.

Before sharing personal or financial information, make sure to:

• Pause if the request feels urgent or puts pressure on you to act right away
• Call the person back using a phone number you already have, like a family member’s cell phone, instead of continuing the conversation
• Agree on a simple safe word with close family members to use if there’s ever an emergency request for money or personal information
• Don’t click links or download files related to account access, payments, or identity checks

Monitoring your credit is another important step in how to prevent identity fraud. Because synthetic fraud and AI scams often unfold quietly over time, early visibility into credit activity can make a meaningful difference.

Equifax Complete Protection   is a multi-layered credit and cybersecurity protection service designed to help spot signs of identity fraud faster and protect online interactions. It brings together several layers of protection, monitoring and support to help stop identity theft and reduce its impact.

Equifax Complete Protection includes device protection to help stop malware and other viruses from infecting your devices and stealing your personal information. It also offers social media and dark web monitoring, which can alert you to threats on your social media and if your personal information is circulating in places commonly used by fraudsters. To help you spot fraud faster, it includes daily credit monitoring and a daily updated Equifax credit score and report , helping you see changes to your credit file as they’re reported to Equifax. If fraud does occur, ID restoration services are available to help guide recovery and reduce the stress of dealing with the aftermath.

What to do immediately if you’re a victim of synthetic fraud

If you believe you’re a victim of synthetic identity fraud, act quickly. Contact your bank and any lenders involved to report the fraud and stop further activity. Reach out to Canada’s credit bureaus to place a fraud alert or consider a credit freeze (if available in your province) to limit additional credit applications.

You should also report the fraud to local law enforcement and the CAFC. Keep records of all communications and documents, as this can help speed up the resolution process and protect your credit going forward.

The bottom line

AI scams, deepfake fraud, and synthetic identities are becoming more common and more convincing. While these scams are getting smarter, Canadians still have ways to protect themselves. Staying informed, verifying requests, and monitoring your credit are practical steps that support stronger fraud prevention. Tools like Equifax Complete Protection help Canadians spot signs of identity fraud sooner and navigate recovery if something goes wrong. With the right habits and support in place, protecting your financial identity becomes part of everyday awareness rather than a constant source of worry.