The federal telecommunications regulator(CRTC) says new technology will help reduce the frequency and impact of caller ID spoofing.
Spoofing happens when a caller hides their identity by displaying fake or altered phone numbers on a call display when making a call.
It can be used by fraudsters looking to fool unsuspecting victims into believing that they are receiving a legitimate telephone call from the government or their bank.
It adds that as service providers upgrade their networks and offer compatible phones to their customers, more Canadians will be able to see the effects of the new technology.
The federal regulator also says it is working with the industry to trace nuisance calls back to their points of origin.
"This new caller ID technology will empower Canadians to determine which calls are legitimate and worth answering, and which need to be treated with caution," CRTC chairperson Ian Scott said in a statement.
The CRTC cautioned that Canadians should never provide personal information such as banking information or social insurance numbers over the phone without first verifying that the request is legitimate.
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