In today’s digital-first economy, rising fraud in Canada is threatening trust like never before. Right now, fraudsters are exploiting this. Picture this: your team has just onboarded a promising new client. Everything checks out – until weeks later, you discover that client never existed. The identity was synthetic. The data was fake. The damage? Real and expensive. This isn’t fiction. It’s the new reality facing Canadian businesses, where fraud risk is exploding as digital interactions increase. According to Statistics Canada, reported fraud cases jumped 12% in 2023 alone. Over the past decade, they’ve nearly doubled.

The cost?

Due to rising fraud in Canada, Canadians lost $638 million in 2024 – a record-breaking number (Canadian Anti-Fraud Centre). And for businesses, it’s even steeper: the average cost of fraud for a large Canadian enterprise exceeds $13 million annually (ACFE, 2024). Despite this, 41% of North American merchants still rely on manual, outdated fraud prevention processes instead of using automated, AI-powered systems (LexisNexis Risk Solutions, 2023). Now is the time to turn risk into competitive advantage – and invest in smarter, adaptive fraud prevention technology before it costs you more.

The Hidden Cost of Every Fraud Attempt

Every fraud attempt, whether successful or not, leaves a mark. It forces your team to rerun checks, reroute approvals, and rebuild customer confidence. Worse, it chips away at the one thing you can’t afford to lose: consumer trust. Behavioral science calls this the “trust deficit effect.” Once trust is breached, it takes significantly more effort and time to restore than to build. And consumers don’t wait. If your process feels risky, complex, or outdated, they’ll walk – often straight into the arms of your competitors. Rebuilding that trust starts with transparency. Proactively informing affected users, owning the incident, and clearly outlining what changes you’ve made can help restore credibility. Reinforce safety with trust signals – like visible fraud controls, liveness detection, and real-time support – and simplify the user experience. When customers feel protected and understood, trust can be repaired over time.

Why Traditional Tools Are Failing

So why is this happening? Because fraud has evolved and many defenses haven’t. Yesterday’s protection tools; passwords, security questions, even two-factor authentication – were designed for a different era. Today’s attacks are powered by AI, deepfakes, and voice cloning. Among the most dangerous new threats:

• Synthetic identity fraud, where real and fake data are blended to create “new” individuals who can pass traditional KYC checks (McKinsey).
• Phishing scams enhanced by generative AI, making emails indistinguishable from legitimate communication.
• Deepfakes and injected media, used to impersonate executives or bypass biometric verification.
• Voice-based social engineering, where cloned voices manipulate customer service agents or verification systems.

These aren’t anomalies – they’re trends. And they’re costing Canadian businesses time, money, and reputation.

Rethinking the Response: From Reactive to Predictive

To stay ahead, organizations must shift from detection to prevention – and that starts with smarter systems. At EIS, we’ve designed our SmarterProcessing™ platform to meet today’s most pressing fraud challenges. Built on 40+ years of experience helping Canadian enterprises with onboarding, verification, and compliance, it integrates best-in-class tools that work together – seamlessly and intelligently.

Jumio uses AI to verify ID documents, detect liveness, and cross-reference user data with over 500+ global sources. It performs biometric checks in real time, helping catch suspicious behavior the moment it occurs. (Jumio 2024 Study) Clearspeed analyzes voice responses to detect risk signals across 60+ languages – in seconds. Originally developed for U.S. military screening, it reduces case review time by 95% and shrinks investigation loads by 74% without collecting invasive biometric data. (Clearspeed) Together, these tools give Canadian businesses:

Fraud Is Evolving. So Must We.

The scariest part? Fraudsters are innovating faster than most companies are reacting.

But that also means there’s an opportunity. Investing in modern fraud mitigation isn’t just a cost- it’s a competitive advantage. It tells your clients that you value their security. It signals to partners that you take compliance seriously. And it shows leadership that you’re future-ready. In a world where trust is constantly under attack, your protection can become your brand. Let’s stay ahead – together.

Association of Certified Fraud Examiners. (2024). Report to the Nations: 2024 Global Study on Occupational Fraud and Abuse. Association of Certified Fraud Examiners. (2024). Report to the Nations: 2024 Global Study on Occupational Fraud and Abuse. Fraud Is Evolving. So Must We.

Canadian Anti-Fraud Centre. (2024). Fraud statistics. Association of Certified Fraud Examiners. (2024). Report to the Nations: 2024 Global Study on Occupational Fraud and Abuse. Fraud Is Evolving. So Must We.

Clearspeed. (n.d.). Technology and resources. Association of Certified Fraud Examiners. (2024). Report to the Nations: 2024 Global Study on Occupational Fraud and Abuse. Fraud Is Evolving. So Must We.

Forbes Technology Council. (2023, October 12). Voice cloning and cybersecurity. Forbes. Association of Certified Fraud Examiners. (2024). Report to the Nations: 2024 Global Study on Occupational Fraud and Abuse. Fraud Is Evolving. So Must We.

Gligorijevic, B., & Le Mens, G. (2021). Rebuilding trust in the digital age. Harvard Business Review. Association of Certified Fraud Examiners. (2024). Report to the Nations: 2024 Global Study on Occupational Fraud and Abuse. Fraud Is Evolving. So Must We.

Jumio. (2024). Online identity study. Association of Certified Fraud Examiners. (2024). Report to the Nations: 2024 Global Study on Occupational Fraud and Abuse. Fraud Is Evolving. So Must We.

Jumio. (n.d.). Biometric verification and liveness detection overview. Association of Certified Fraud Examiners. (2024). Report to the Nations: 2024 Global Study on Occupational Fraud and Abuse. Fraud Is Evolving. So Must We.

LexisNexis Risk Solutions. (2023). True Cost of Fraud™ Study: North America. Association of Certified Fraud Examiners. (2024). Report to the Nations: 2024 Global Study on Occupational Fraud and Abuse. Fraud Is Evolving. So Must We.

McKinsey & Company. (n.d.). Synthetic identity fraud: A growing risk. Association of Certified Fraud Examiners. (2024). Report to the Nations: 2024 Global Study on Occupational Fraud and Abuse. Fraud Is Evolving. So Must We.

Statistics Canada. (2023). Police-reported crime statistics in Canada. Association of Certified Fraud Examiners. (2024). Report to the Nations: 2024 Global Study on Occupational Fraud and Abuse. Fraud Is Evolving. So Must We.

Artificial Intelligence (AI) is revolutionizing industries by automating processes, improving efficiency, and enhancing decision-making. One of the areas experiencing the most significant transformation is applications and claims processing. From insurance and banking to healthcare and government services, AI-powered solutions are reshaping how applications are reviewed, verified, and approved, while streamlining valid claims handling to reduce costs, errors, and processing times.

The Challenges of Traditional Processing Methods

For decades, businesses have relied on manual or semi-automated processes to handle applications and claims. While these traditional methods have played a critical role in operations, they often come with several inefficiencies, including:

• Slow turnaround times due to manual reviews and approvals
• High operational costs associated with labor-intensive tasks
• Increased risk of errors and fraud due to human oversight
• Customer dissatisfaction caused by lengthy processing times

As industries grow and customer expectations shift toward faster, more seamless interactions, these traditional processes create bottlenecks that hinder scalability and competitiveness. AI-driven automation is addressing these challenges by introducing speed, accuracy, and enhanced decision-making capabilities, allowing businesses to process applications and claims with unprecedented efficiency.

AI-Powered Automation: Faster and More Efficient Processing

One of the most significant ways AI is transforming applications and claims processing is through automation. AI-driven tools can process large volumes of applications and claims far faster than traditional methods, reducing delays, improving accuracy, and controlling costs.

• Document Processing and OCR: AI-powered Optical Character Recognition (OCR) technology can extract and analyze data from documents, forms, and images, reducing the need for manual data entry.
• Automated Decision Making: AI algorithms can analyze application and claims data, compare it against predefined rules, and determine approvals or rejections with minimal human intervention.

By leveraging AI, organizations can significantly reduce processing times, lower costs, and enhance the overall customer experience by delivering faster responses and reducing errors.

Enhanced Fraud Detection and Risk Mitigation

Fraudulent user authentication is a growing concern in industries such as insurance, banking, and healthcare. According to the Canadian Anti-Fraud Centre, over $638 million was lost to fraud in Canada in 2024, emphasizing the need for advanced AI solutions in claims processing and fraud prevention. AI has become a crucial tool in identifying and preventing fraudulent activities at the forefront, and before they can cause financial losses.

• Anomaly Detection: AI systems use machine learning to analyze historical data and identify patterns that indicate 
fraudulent activities.
• Predictive Analytics: AI models assess risks by analyzing past fraud cases and identifying potential red flags in new claims 
and applications.
• Behavioral Analysis: AI can track inconsistencies in user behavior, application history, or claim patterns to detect possible 
fraud attempts.

EIS is at the forefront of fraud prevention, leveraging AI technologies such as facial recognition and voice analytics to verify applicant identities and detect fraudulent claims. These AI-driven tools analyze biometric markers to ensure that submitted documents and claims originate from legitimate users. By implementing AI-powered fraud detection, businesses can significantly reduce financial risks and improve the integrity of their application and claims processes.

AI in Action: Industry-Specific Applications

Insurance

AI-powered claims processing in the insurance industry has drastically reduced settlement times. Insurers use AI-driven analytics to assess damages, verify policy details, and automate claims approvals, reducing human intervention and speeding up payments to policyholders. Approximately a quarter of insurers identify underwriting or claims management as top AI use cases.

Banking and Financial Services

Banks and financial institutions use AI to streamline new client onboarding, dispute resolution, NAF (New Account Fraud), and AML and compliance management to name a few. AI-driven models authenticate applicant’s personal information, financial history, risk factors, and creditworthiness within seconds.

Government Services

AI is being used to process visa applications, social security claims, and tax filings, significantly reducing processing backlogs and improving service delivery for citizens.

The Future of AI in Applications and Claims Processing

The adoption of AI in applications and claims processing is only going to accelerate in the coming years. As AI technology continues to evolve, businesses will benefit from even more sophisticated automation, improved fraud detection, and enhanced customer interactions.

Looking ahead, the integration of AI with blockchain technology, advanced analytics, and predictive modelling will further refine application and claims processing, ensuring faster, more accurate, and secure transactions. Organizations that embrace these AI-powered solutions will not only optimize their operations but also gain a significant competitive edge in their industries.