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Eric Smith, Canadian Telecommunications Association Senior Vice-President
Opening Statement to the Standing Committee on Industry and Technology (INDU)

Study: Financial Fraud and Scams in Canada

***Check Against Delivery***

Thursday, June 4, 2026
11:00 a.m. ET

Thank you, Mr. Chair, and members of the Committee, for the opportunity to appear before you today on behalf of the Canadian Telecommunications Association.

Our Association is dedicated to building a better future for Canadians through connectivity. Our members include telecommunications service providers, equipment manufacturers, and other organizations that invest in, build, maintain, and operate Canada’s world-class telecommunications networks.

Fraud is a serious issue. It causes financial harm, undermines confidence in digital services, and affects Canadians in every region of the country.

The telecommunications industry takes this challenge seriously. Our members invest significant resources in fraud prevention and work continuously to identify emerging threats, strengthen network protections, support law enforcement investigations, and help educate Canadians about scams.

Measures taken to help protect Canadians include blocking certain types of calls, caller ID spoofing prevention tools like Do Not Originate programs and the implementation of STIR/SHAKEN technology, call traceback capabilities to help identify the origins of scam calls, network-level analytics to identify and flag suspicious communications, spam reporting systems, identity and account protections, and ongoing collaboration with law enforcement and government agencies.

At the same time, it is important to recognize that fraud is an ecosystem-wide challenge.

Telecommunications networks are often the pathway through which fraudulent communications travel, but they are typically not where scams originate, where fraudulent content is created, or where financial losses ultimately occur.

Today’s fraudsters frequently use digital platforms to originate, optimize, amplify and execute scams, or use over-the-top messaging applications to communicate with their intended victims.

While telecommunications networks are used to deliver these communications, telecom service providers generally do not see the content of these communications. To use a common analogy, while telecom providers deliver the envelope, they do not read the mail.

Telecommunications providers are also subject to legal obligations that limit their ability to interfere with communications. Section 36 of the Telecommunications Act prohibits telecom providers from independently blocking communications without specific authority provided by the CRTC.

This restriction is a fundamental element of Canada’s net neutrality framework and exists to ensure that anti-fraud measures do not inadvertently block lawful traffic or interfere with critical communications.

Some of the previously mentioned measures taken by our sector to combat fraud were only possible after careful scrutiny by the CRTC and only after the Commission was satisfied that that such measures would be effective, were in the public interest, and would not negatively impact the delivery of legitimate traffic.

As the government develops its National Anti-Fraud Strategy, we think it should focus on the following four priorities.

First, strengthen coordination and information sharing across sectors. Fraud prevention is most effective when telecommunications providers, financial institutions, digital platforms, government agencies, and law enforcement work together and share information.

Second, strengthen international cooperation. Many fraud operations originate outside Canada’s borders, making cross-border collaboration essential.

Third, expand public awareness and education. Most fraud ultimately relies on social engineering. Helping Canadians recognize scams remains one of the most effective tools available.

And fourth, ensure that any new anti-fraud measures under consideration complement existing regulatory frameworks and avoid unnecessary duplication. Building on existing authorities, expertise, and industry-led initiatives will help ensure that resources are directed toward preventing fraud rather than navigating overlapping compliance obligations.

In closing, the telecommunications industry is committed to being part of the solution. Our members will continue investing in network protections, collaborating with partners across sectors, and supporting efforts to protect Canadians from fraud.

We look forward to working with government, regulators, law enforcement, and other stakeholders to develop a National Anti-Fraud Strategy that is practical, effective, and reflects the shared responsibility required to address this evolving threat.

Thank you. I would be pleased to answer your questions.