In today’s digital age, identity theft has become an increasingly prevalent concern for Canadians. While this may seem like something that will never happen to you, it is becoming easier and easier for criminals and scammers to access our personal information. And with that threat, our credit histories and personal finances are at risk. Therefore, it is essential to understand how to protect yourself and your family from this growing threat.
Understanding Identity Theft in Canada
Identity theft occurs when someone uses your personal information without authorization for criminal or fraudulent purposes. It involves the collection and use of personal details such as your name, date of birth, address, social insurance number (SIN), and other identifying information. With this information, criminals can impersonate you to open bank accounts, apply for loans, obtain tax refunds, and more.
And with the scope of the internet now, the potential threats are now coming from anywhere in the world and at a much larger scale. You’ve likely seen evidence of this in your email account with emails from “foreign princes”, unknown friend requests on social media, and text message from international numbers.
Types of Identity Theft
Canadians should be aware of several types of identity theft:
- Financial Identity Theft: This occurs when personal information from lost credit cards or financial statements is stolen to commit crimes such as opening fake checking accounts, applying for loans, mortgages, and other financial frauds.
- Medical Identity Theft: A crucial and fast-growing threat where your personal health insurance information can be used to steal medical care, drugs, and services.
- Criminal Identity Theft: When someone uses your information to commit crimes.
- Digital Identity Theft: When someone uses your personal information to create fake profiles and/or accounts on social media or websites.
Warning Signs of Identity Theft
Recognizing the early signs of identity theft can help you take immediate action:
- Unexpected Financial Activities: Most people notice identity theft when they see purchases they can’t explain or withdrawals from an account.
- Health Plan Issues: If you get notified that you’re suddenly not covered for something because you’ve reached your benefit limit, it could mean someone has stolen your identity
- Contact from Creditors: Getting contacted by a creditor to approve or deny credit you never applied for, or they’re calling asking for payment on an account you’ve never had.
- Missing Mail: If you’re not receiving expected bills or other mail, it’s possible that your mail has been redirected or intercepted.
Preventive Measures
Securing Personal Information
- Protect Your Social Insurance Number (SIN): Do not use you SIN as a piece of ID and never reveal it to anyone unless you are certain the person asking for it is legally entitled to that information. Store your Social Insurance Number card and documents containing your SIN in a safe place—do not carry them in your wallet.
- Manage Physical Documents: Store ID cards and documents (such as birth certificates, social insurance numbers, and passports) in a secure place such as a locked fireproof safe. Shred any documents and items with personal information once you no longer need them.
- Be Careful with Mail: Ask trusted friends or neighbours to pick up your mail or opt for Canada Post’s “hold mail” service if you’re going away on vacation.
- Limit What You Carry: Carry as few cards and documents as possible, and always check to see the credit card you get back from the cashier or waiter is your own.
Digital Security
- Strong Passwords and Authentication: Use strong passwords and passphrases with multi-factor authentication (MFA) to secure all accounts. Multi-factor Authenticaion adds a layer of security by protecting your account if your password is compromised. Make sure you use different passwords for each account and make them hard to guess by using random words, numbers and symbols.
- Secure Your Network: Secure your Wi-Fi network by changing the default network name, known as the service set identifier, and password that came with your router and service account. Avoid using public Wi-Fi networks, especially if sending sensitive information or logging into sensitive accounts. Consider investing in a VPN service if you work in public places often.
- Update Software Regularly: Ensure you update all software and applications regularly. Install anti-virus software to scan your devices for malware, and anti-phishing software to block phishing content.
- Be Careful Online: Never give out personal information over the phone, through the mail, or over the Internet unless you have initiated the contact. Phishing is a common way for identity theft to happen. Do not trust your email. Anything in an email or attached to an email can be intercepted.
- Social Media Awareness: Tech-savvy thieves can quickly gather what you share on social networks (your home or email address, children’s names, birth date, and so on) to use for identity theft, including scams, phishing, and account theft. Limit who can see your posts and photos on social media, hide your personal information, and never accept friend requests from people you don’t know. Make sure your posts and photos do not contain any location information, birthdate information, or other family information.
Financial Vigilance
- Monitor Your Accounts: Regularly check for and immediately report any strange activity you see on your online banking or financial statements right away.
- Check Your Credit Report: Check your credit report at least once a year for errors or unusual activities.
- Consider Credit Monitoring: Consider enrolling in a credit monitoring service to be alerted to new inquiries or changes in your credit report. Equifax and Transunion have monitoring services you can subscribe to.
- Use Credit Cards Carefully: Be especially wary of using your debit card when shopping online. If an identity thief gets hold of your debit card information, they can drain your bank account or open new accounts in your name. If you have a credit card, use it instead, as credit cards typically provide added protection against fraudulent charges.
- Switch to Paperless Statements: eStatements are digital versions of your regular statements that provide 24/7 secure access to your account balances and statements. With this feature, you’ll reduce the risk of identity theft from statements stolen from your mail or recycling bin.
- Report Missing Cards Immediately: If you lose or misplace a bank card, credit card, or a piece of ID, report it immediately. Banks and credit card companies can deactivate the old card immediately and freeze the account if needed.
What to Do If You’re a Victim
If you believe you’ve been a victim of identity theft, taking immediate action is crucial:
- Change Your Passwords: Change your passwords right away for your online accounts affected by the breach and for any accounts that used the same password.
- Contact Financial Institutions: Tell your bank and credit card companies about the incident, they have entire processes to help lock down your accounts to prevent possible fraudulent activity.
- Report to Authorities: Report it to your local police if it involved a theft or crime. Report to the Canadian Anti-Fraud Centre (1-888-495-8501) if it involved a scam or fraud.
- Contact Credit Bureaus: Contact Equifax and Transunion to place fraud alerts on your credit reports. This can prevent new accounts from being opened in your name or using your information.
- Notify Government Agencies: Contact the Canada Revenue Agency to have your account locked down.
- Replace ID Documents: Report any missing ID documents, such as a driver’s licence, a health card, or immigration document to the appropriate organization.
- Document Everything: Make copies of all documents. Document all the steps you have taken and your expenses to clear your name and re-establish your credit.
- Insurance: Contact your home or tenants insurance company to inform them of the identity theft and to inquire about identify theft coverage. You may have coverage that will help you pay for ID replacements and a lawyer if needed.
Conclusion
Identity theft is a serious threat that requires vigilance and proactive measures. By securing your personal information, maintaining digital security, practicing financial vigilance, and knowing what steps to take if you become a victim, you can significantly reduce your risk of identity theft.
Remember that prevention is the best defense. Stay informed about what’s out there about you and take the steps to protect your identity. Don’t wait until it’s too late. By implementing these strategies, you can help protect yourself and your family from the devastating effects of identity theft.