Toronto's auditor-general estimates the Toronto Transit commission lost $61 million due to fare evasion in 2018, along with another $3.4 million due to malfunctioning Metrolinx equipment.
"The total estimated annual revenue loss of $64 million is probably understated, as we were not able to quantify the loss due to the malfunction of TTC's subway fare gate equipment," AG Beverly Romeo-Beehler said in the report released Thursday.
The highest evasion rate was for streetcars at 15.2 per cent, 5.1 per cent for buses and 3.7 per cent for the subway.
Romeo-Beehler's audit includes 27 recommendations including more adequate training to fare inspectors, exploring more options to help prevent the problem, review gate malfunctions and re-assess whether there is a critical need to issue child PRESTO cards.
"The Board request the Chief Executive Officer, Toronto Transit Commission, to NOT distribute the Toronto Transit Commission's promotional Child PRESTOcards until appropriate controls are in place," the report said.
Last June, various transportation officials told NEWSTALK1010 that estimates on fare evasion ranged from $20 to $40 million.
In a statement, Mayor John Tory called fare evasion unacceptable and that the TTC has accepted all of the recommendations.
"I hope they send a clear message to fare evaders very quickly that they will be caught and they will face costly penalties," Tory said, adding the 2019 budget includes hiring more fare inspectors and transit enforcement officers.
"I look forward to supporting that plan at Executive Committee and City Council next month."
TTC Chair Jaye Robinson said the recommendations will guide the city's full transition to the PRESTO system.
"Despite the difficult transition to this new system, PRESTO will provide us with an opportunity to track fare evasion more consistently and accurately than ever before. This valuable data will give us a better picture of ridership and allow us to identify system priorities," she said.