Canadians can now apply for PCU fraud compensation after $8.7M settlement opens claims
A federal settlement opens a claims process for PCU fraud compensation after roughly 42,000 Canadians had personal data accessed during the COVID-19 pandemic, with a February 3, 2027 deadline to apply.
The federal government has agreed to an $8.7-million settlement that will fund payouts to people whose personal information was accessed or used fraudulently in connection with the Prestation canadienne d’urgence (PCU). KPMG will administer claims and notify eligible individuals, who can submit forms online or by mail before the deadline. The settlement follows a class action and a special report to Parliament that identified deficiencies in how the Canada Revenue Agency handled prevention and detection of breaches.
Settlement details and legal context
The $8.7-million agreement resolves a class-action suit tied to fraudulent PCU and PCUE payments made during the pandemic.
The Treasury Board Secretariat said the deal is a compromise to resolve disputed claims and does not constitute an admission of liability by the federal government.
A special report filed with Parliament by the Office of the Privacy Commissioner highlighted weaknesses in prevention, monitoring, detection and breach management at the Canada Revenue Agency.
The settlement was reviewed in Federal Court and provides the framework and timelines for claim submission and payout distribution.
Who is eligible under the settlement
Eligibility is limited to group members whose accounts experienced unauthorized access between June 15 and August 13, 2020.
People whose personal data were only accessed, or both accessed and used to fraudulently claim PCU or PCUE on their behalf, may qualify for payments.
Individuals who received direct notice from KPMG are also considered eligible and can follow the instructions in that communication.
Prospective claimants can confirm their status using KPMG’s eligibility tool, which requests a surname and the last three digits of the claimant’s social insurance number.
How to file a claim and contact information
Claims can be submitted electronically through KPMG’s claims portal or by mail using a downloadable form available from the administrator.
Those seeking more information can email [email protected] for guidance on documentation and next steps.
Claimants should ensure they apply before the cut-off date of February 3, 2027, and keep records of any notices received and supporting documents.
KPMG will manage verification and processing of claims and communicate directly with approved applicants.
Amounts claimants may receive
The settlement sets out tiered amounts depending on how personal information was affected.
Individuals whose data were consulted but not fraudulently used may be eligible for up to $80 to compensate for time spent resolving issues related to the breach.
Those whose information was both consulted and used fraudulently may be eligible for up to $200 for time spent addressing the misuse.
Additionally, some victims may claim up to $5,000 for out-of-pocket costs incurred within the year following the breach, such as credit card fees or other direct expenses.
Potential reductions and distribution of funds
The Federal Court has warned that the amounts awarded could be reduced if the total of approved claims exceeds available settlement funds.
Payments may therefore be prorated to ensure all approved claimants receive a portion of the settlement pool rather than full advertised amounts in every case.
The federal government has also agreed that any residual funds after claims and administration will be donated to the Canadian Council for the Protection of Privacy and Access to Information to support research on privacy protections.
That allocation is intended to strengthen future privacy safeguards and research into breach prevention.
Records and documentation claimants should prepare
Claimants seeking the higher out-of-pocket reimbursement should assemble receipts and other proof of expenses tied to the breach, including banking or credit card statements.
Anyone who received a notification from KPMG should retain that notice and provide it with their claim to streamline verification.
If claimants are unsure whether their information was affected, the KPMG eligibility checker is the first step and can clarify whether a formal claim is necessary.
Keeping detailed notes of time spent and steps taken to remedy identity misuse will help support requests for time-based compensation.
Eligible Canadians have a limited window to act, and the settlement creates a structured pathway for victims of the PCU-related fraud to seek redress.
Those who believe they were affected should check their eligibility with KPMG, gather supporting documents, and submit claims well before February 3, 2027 to ensure consideration.
