Canada is proposing new banking fraud protection rules that could give consumers greater control over their bank accounts while requiring banks to introduce stronger safeguards against fraud.
Although the regulations have not been finalized, they could change how certain banking features work, improve fraud prevention, and make it easier for Canadians to manage the security of their accounts.
Why is Canada introducing these changes?
Financial fraud has become a growing concern across the country.
According to the Canadian Anti-Fraud Centre, Canadians reported losing more than $704 million to fraud in 2025. Since 2022, reported losses have exceeded $2.4 billion, and officials estimate that only 5% to 10% of scams are ever reported.
In response, the federal government is developing Canada’s first National Anti-Fraud Strategy. The proposed banking regulations are one of the first major initiatives supporting that effort and are designed to reduce fraud while improving consumer protection.
What could change for your bank account?
If the regulations are approved, banks would need to introduce several new security measures for their customers.
Some of the proposed changes include:
- asking for your express consent before enabling certain electronic funds transfer features, including wire transfers;
- allowing you to disable specific account features that you do not want to use;
- letting you request changes to your withdrawal and transaction limits;
- strengthening internal systems to detect and prevent consumer-targeted fraud.
For example, if you never use wire transfers, your bank could allow you to keep that feature disabled until you specifically choose to activate it. The goal is to reduce opportunities for criminals to misuse high-risk banking services.
How could these rules help protect customers?
The proposal isn’t only about adding new banking features. It also aims to improve how banks respond when fraud happens.
Under the proposed regulations, banks would have to collect standardized information about fraud cases and report it to the Financial Consumer Agency of Canada (FCAC).
According to the Department of Finance Canada, better reporting would help regulators:
- identify new fraud trends more quickly;
- understand how scams are evolving;
- improve future consumer protection measures;
- strengthen oversight of federally regulated banks.
Over time, this information could help financial institutions respond faster to emerging scams and improve fraud prevention across the banking system.
What is consumer-driven banking, and why does it matter?
Alongside the proposed fraud regulations, the federal government has also published draft Consumer-Driven Banking Regulations, another important step toward Canada’s open banking framework.
In simple terms, consumer-driven banking would allow Canadians to securely share their financial information with approved financial apps and service providers without giving them their online banking password.
Today, many financial apps rely on screen scraping, which requires users to share their banking credentials so the app can access account information.
According to the Department of Finance Canada, around nine million Canadians currently use services that depend on screen scraping. The proposed framework would replace that process with secure API-based data sharing, giving consumers more control over who can access their financial information.
Do Canadians need to do anything now?
Not yet. The proposed regulations are still under review and are currently going through the federal consultation process.
The banking fraud protection rules have entered a 30-day public consultation period, while the proposed Consumer-Driven Banking Regulations are open for 60 days. During this time, the government will collect feedback before publishing the final version of the regulations.
If the rules are approved, banks will be responsible for implementing the required changes and informing customers about any new features or account options.
What could these changes mean for you?
If the regulations move forward, Canadians may notice additional security options when managing their bank accounts.
Some of the expected benefits include:
- greater control over high-risk banking features;
- stronger protection against unauthorized electronic transfers;
- more flexibility to adjust transaction and withdrawal limits;
- improved fraud detection by financial institutions;
- safer ways to share financial information with approved service providers.
While these measures cannot eliminate fraud entirely, they are intended to make scams more difficult to carry out and give consumers more control over their banking experience.
What to watch next
The proposals are not yet final, so some details may change before the regulations come into force.
Even so, they represent an important step toward strengthening banking fraud protection in Canada. If implemented, the new rules could make digital banking more secure while giving Canadians greater control over how their accounts and financial information are used.