Identity theft is when personal information, such as names, social insurance numbers (SINs), or credit card details are unlawfully acquired to commit fraud or other crimes. These may include opening bank accounts, applying for loans, or claiming tax returns.
To avoid identity theft in Canada, safeguard your personal information – avoid giving out sensitive information online or over the phone unless you're certain of the recipient's legitimacy and regularly monitor your financial statements for any suspicious activity.
Key Takeaways
- Identity theft is the illicit acquisition and misuse of an individual's personal information, such as social insurance numbers or credit card details, for fraudulent purposes.
- You can prevent identity theft by safeguarding personal information, using strong passwords, staying vigilant against scams, and regularly monitoring financial statements.
- If you suspect that your identity has been stolen, immediately notify your bank, the local police, and the CRA.
What is identity theft?
Identity theft occurs when someone illicitly obtains and uses your personal information – like social insurance numbers, addresses, or credit card details – to engage in fraudulent activities.
Here are some examples of what someone could do with your stolen identity:
- Open unauthorized bank accounts in your name
- Apply for loans or mortgages
- Claim tax refunds
How do perpetrators get your information? They might access your information through data breaches, hacking insecure websites, or phishing scams.
Common phishing scams in Canada include fraudulent emails posing as legitimate financial institutions or government agencies, as well as contests that request personal information or prompt recipients to click malicious links.
Ways to protect yourself from identity theft
While being targeted for identity theft isn’t always in your control, there are steps you can take to protect yourself.
Always verify caller legitimacy
Be cautious when providing personal information like your SIN or date of birth over the phone. Verify the caller's legitimacy and ensure you're speaking with a trusted source before disclosing sensitive details.
Beware of email requests
Legitimate organizations like the Canada Revenue Agency and financial institutions do not typically request sensitive information via email.
Watch for phishing attempts disguised as official correspondence and refrain from responding to unsolicited emails requesting personal data. This includes anything posed as tax obligations or lottery/sweepstakes winnings.
Keep your login information secure
Safeguard your access codes, user IDs, passwords, and PINs with vigilance. Regularly update your login credentials for online banking and all other sites, employing strong, unique passwords for added security.
Pro tip: Use a password manager like LastPass or 1Password to generate secure passwords and keep them safe.
Monitor your bank accounts and credit reports
Make it a habit to monitor your financial statements and credit reports for any suspicious activity. Report unauthorized transactions immediately to your bank or credit card issuer.
You can use a tool like Equifax Complete Premier to easily keep track of your credit score and report.
What to do if you’re a victim of identity theft
If you believe that your identity has been stolen, the Canada Revenue Agency (CRA) recommends taking the following actions immediately:
- Notify your bank and the local police right away
- Contact the CRA at 1-800-959-8281
- Report the incident to Equifax or TransUnion, which are the two biggest consumer credit bureaus in Canada
- Call 1-800-622-6232 to learn where and how you can replace your identity cards/numbers, including your health card, driver’s license, and SIN
How do you protect yourself from identity theft?
Identity theft is very serious and can lead to life-long consequences for victims.
What steps do you take to protect yourself from identity theft? Let us know in the comments below.
FAQ
How can I avoid becoming a victim of identity theft?
You can avoid identity theft by safeguarding your personal information, monitoring financial statements regularly, using strong passwords, and staying vigilant against phishing scams and fraudulent activities.
How do I report identity theft in Canada?
If you are suspicious of identity theft, immediately report it to your local police and your bank by calling them. Following that, call the CRA at 1-800-959-8281 and report the incident to Equifax or TransUnion, the two biggest consumer credit bureaus in Canada.
Does my bank offer any identity theft protection?
Some banks and accounts do offer this. For instance, the BMO Performance Chequing Account provides OnGuard for free, a fraud prevention service that tracks and monitors your digital and financial activity. It notifies clients of any suspicious activity.
Leave a comment
Comments