AI-driven fraud is costing Canadian companies millions. Canadian businesses are losing a noticeable share of profits to fraud powered by artificial intelligence.
In a new report from KPMG Canada, 72% of companies surveyed say AI-enabled scams cut into their profits over the past year. Most respondents estimated the losses amounted to between 1 and 5% of their annual earnings.
The findings come from the firm’s **2026 Business Fraud Survey.** It polled 251 business owners and C-suite executives between Feb. 4 and Feb. 13 last month. The research was conducted through the business research panel of the Angus Reid Group.
Survey snapshot
The survey focused exclusively on larger companies with annual revenue of at least $50 million.
Of the respondents, 55 companies reported annual revenue between $300 million and $1 billion. Another 23% said their revenue exceeded $1 billion, while 22% reported revenue between $50 million and nearly $300 million.
In terms of ownership structure, 62% of the companies were privately held and 38% were publicly traded.
Regionally, half of the respondents are based in Ontario, followed by Alberta at 19%, 13% in British Columbia and 10% in Quebec. The remaining businesses are located in other parts of Canada.
AI-generated attacks on the rise
The majority of organizations that experienced fraud in the last year stated that artificial intelligence played a role. 81% reported that the attacks they encountered were AI-enabled. 72% said their company was targeted more than once.
Concern about future incidents is also high. 94% of respondents are worried about facing more AI-driven fraud attacks in the coming year.
Despite that, companies reported mixed degrees of preparedness. Only 26% have a formal and fully tested fraud response plan to tackles AI-enabled threats, such as deepfakes or voice cloning.
AI is changing the fraud landscape
Myriam Duguay, partner and national leader of forensic investigation, integrity and dispute services at KPMG Canada, stated that “AI has fundamentally altered how fraud operates.”
“AI–powered fraud is changing the ground rules. Canadian organizations aren’t just seeing more attempted attacks – they’re more sophisticated, harder to spot and faster to execute, leaving many businesses vulnerable and unprepared to fight back,” she said.
She added that the consequences extend far beyond financial losses.
“Beyond the immediate financial hit, the reputational fallout from a fraud attack can be devastating. A single scam can shatter customer confidence, result in lost business, and leave lasting damage to a company’s brand.
Now, with rise in AI-powered attacks that can mimic legitimate business interactions with alarming accuracy, the margin for error becomes razor-thin and having strong fraud defences is even more essential.”
Top threats: Phishing, deepfakes & voice cloning
The survey found that AI-generated phishing emails or chat messages were the most commonly reported schemes, cited by 60% of respondents.
39% of organizations reported deepfake or manipulated documents as a frequent tactic. 24% were affected by clone impersonation calls.
To counter these risks, 52% of companies surveyed said they are already using AI tools to detect unusual activity, verify users and identify manipulated content.
Meanwhile, six in 10 respondents said they plan to increase spending on fraud detection and prevention by up to 7% this year.
Training & technology are key
Employee education is also playing a role in prevention efforts. 81% of businesses said they provide fraud awareness training to staff every six to 12 months.
