Identity theft in Canada is becoming increasingly common. According to Statistics Canada, the rate of identity theft in 2021 (the latest data available) in Canada was 18.91 per 100,000 residents. Unfortunately, the repercussions of identity theft can be extensive.
If you suspect that you may be the victim of identity theft, it’s important to act quickly to minimize the potential damage it may cause. Better yet, it’s a good idea to know the signs of identity theft to minimize the risk. Read on to find out how to check for identity theft in Canada.
Article Snapshot
| Signs of identity theft | There are many signs of identity theft to watch out for, such as: – unfamiliar accounts on your credit file – receiving credit cards you never applied for – getting collection calls about accounts you didn’t open |
What happens? | Identity theft comes with many consequences, including financial loss, credit score damage, potential legal issues, and emotional stress. |
| What to do? | If you’re the victim of identity theft, call the credit bureaus, your financial institutions, and the police. |
What Is Identity Theft?
Identity theft happens when someone uses your personal information, such as your name, Social Insurance Number (SIN), bank account information, credit card number, or other identifying information, without your authorization, for illegal purposes. They may use a variety of tactics to steal your identity, like phishing emails, hacking your computer, and even looking through dumpsters for discarded mail.
What Happens If Someone Stole My Identity?
Identity thieves can use your information to open credit accounts, phone lines, mortgages, apply for government benefits and even use it to work illegally. Identity theft can have serious and long-lasting repercussions, including the following:
- Financial Loss: Scammers can take money from your bank accounts, max out your credit cards, and rack up debt using your name, which can lead to significant financial loss.
- Credit Score Damage: Identity theft can negatively affect your credit score. In turn, you’ll have more trouble getting approved for loans, credit cards, mortgages, and other financial products.
- Legal Issues: If your identity is used to commit crimes, you could face legal issues. This can also cost you a lot of money to prove your innocence.
- Emotional Stress: Being the victim of identity theft can be very stressful, which can negatively impact your mental health.
What Can Someone Do With My SIN, Driver’s License, & Passport Information?
If your SIN, driver’s license, or passport are stolen, several harmful effects can occur, including the following:
- Apply For Credit: Thieves can use your information to apply for credit cards, loans, or other credit accounts in your name.
- Open Bank Accounts: Someone who steals your SIN, driver’s license, or passport can open bank accounts.
- Tax Fraud: Thieves may file tax returns in your name to claim refunds or government benefits.
- Create Fake IDs: Thieves could use your information to create fake ID cards, which can be used for illegal activities.
Learn more: What Is A Social Insurance Number (SIN)?
Can Identity Theft Affect My Credit Score?
Yes, it can. The following are some ways that identity theft can negatively impact your credit score:
- Unauthorized Accounts: Thieves might open new credit accounts in your name and max them out. This can lead to high balances, which ultimately increases your credit utilization ratio.
- Missed Payments: If fraudsters spend on credit and don’t make payments, it will be reported on your credit report as late or missed payments. Since payment history plays a key role in your credit score, your score will take a big hit.
- Hard Credit Checks: When a scammer applies for credit in your name, the creditor will conduct a hard inquiry, which will be noted on your credit file and will cause your score to dip.
How To Tell If You’re A Victim Of Identity Theft
Here are some red flags that may alert you to potential identity theft:
Unfamiliar Charges On Your Accounts
Your bank, loan, and credit card statements detail all transactions made over a certain period. If you notice any suspicious purchases, withdrawals, or transactions that you didn’t make, this may be a sign that someone is using your information without your permission.
Learn more: What To Do When You Don’t Recognize A Charge On Your Credit Card Statement
Inaccurate Information On Your Credit Report
If you see accounts or credit checks on your credit report that seem unfamiliar to you, it could indicate that someone opened accounts in your name, or is in the middle of doing so.
Learn more: How To Protect Your Credit Report
Not Getting Bills Or Account Statements
If you notice that you haven’t been receiving bills or account statements recently, this may be a sign that someone has either been stealing these documents or has changed your contact information to conceal criminal activity. Call your creditors right away if you notice this.
Receiving Credit Cards Or Pre-Approved Loans
If you begin receiving credit cards or loan offers that you don’t remember applying for, it may be that someone is using your personal information to apply for credit products.
Collection Calls For Accounts You Never Took Out
If you’re getting calls from a collection agency for debts you did not incur yourself, this might mean that someone is using your personal information to take out loans or make purchases without your authorization.
Suspicious Activity In Your Online Accounts
You may notice unfamiliar logins or password changes in your online banking or shopping. If this is the case, someone may be trying to access your accounts without your permission to steal information.
Email Bomb
An email bomb is a form of cyberattack that involves a significant number of emails sent to one email address in a short time period. This can overload the recipient’s inbox, making it difficult to find important messages, such as sign-in attempts, order confirmations, or changes to contact information.
How To Avoid Identity Theft
The best way to deal with identity theft is to avoid becoming a victim in the first place. This may be easier said than done, as scammers are becoming increasingly sophisticated in their efforts to steal Canadians’ identities. That said, there are some things you can do to ward off identity theft:
Shred Sensitive Documents
Destroy any documents containing personal information before disposing of them. This includes documents like bank statements, old cheques, and old utility bills.
Secure Your Personal Information
Keep important documents like your Social Insurance Number (SIN), birth certificate, bank and credit card statements, and tax returns in a safe place.
Use Strong Passwords
When creating an online account, choose unique, strong passwords that are difficult to come up with or guess. For instance, avoid using your birthdate for your passwords.
Further, you may want to choose different passwords for different accounts to change things up, and perhaps change your passwords every so often. Finally, be very careful where you record these passwords so others can’t find them.
Memorize And Cover Your PIN
You should have your debit and credit card PINs memorized. That way, you won’t have to write them down and risk someone finding them. Further, make sure you cover your PIN when you’re inputting it at a point-of-sale terminal to prevent another person from seeing it.
Be Careful Online
Avoid sharing personal information on unsecured websites, through email, or even through text messages. Be wary of phishing scams that try to steal your information.
If you receive a call from a bank or a credit card company, for example, be cautious about providing sensitive information and verify that they are in fact who they say they are.
Monitor Your Accounts
Regularly check your bank and credit card statements for any unauthorized transactions. Always double-check your utility bill and other subscription bills to make sure that they are in fact yours.
Check Your Credit Report
Regularly review your credit report for any suspicious activity. Keeping an eye on your credit report will help you catch any unauthorized credit accounts that have been opened in your name.
Update Addresses
Always make sure you inform your bank and any creditors or lenders if you change your address. Mail from these businesses often contains important personal information that could help a criminal steal your identity.
Use Two-Factor Authentication
Enable two-factor authentication for an additional layer of security on your online accounts.
What To Do If You’re The Victim Of Identity Theft
If you believe that you are a victim of identity theft, here are the steps you should follow to ensure that the situation is dealt with as soon as possible.
Call Your Financial Institutions
Call all the banks you have accounts with and all of your credit card providers. Cancel your cards and make sure that they are aware of your current fraud problems. You may even want to cease to be a client of the bank where you’ve been a victim of identity theft and switch to another.
Contact The Authorities
Call the police to report your identity theft. Provide as much information as possible and file a police report to have your situation investigated.
Call The Credit Bureaus
Contact the two Canadian credit report bureaus: Equifax and TransUnion. Request a copy of your credit report from each, and ask about placing a fraud alert on your file. This will alert potential lenders that you may be the victim of identity theft, which will prompt them to take extra steps to verify your identity before extending a loan in your name.
You may also want to consider placing a credit freeze on your file, which prevents the credit bureaus from sharing your credit or personal information when a lender tries to access it. Keep in mind that this option is currently only available to Quebec residents.
Contact the CRA
Call the Canada Revenue Agency (CRA) at 1-800-959-8281 to let them know that you may be the victim of identity theft. They have an Identity Protection Services (IPS) program that provides a point of contact to resolve identity theft issues. This program deals with identity theft victims to help restore their accounts and protect them from fraudulent activity.
Call Canada Post
Identity thieves often steal mail to access personal information. By reporting the theft to Canada Post, you can help them look into and prevent further mail theft.
Find Out How And Where To Replace Your Identity Cards
Call 1-800-O-Canada (1-800-622-6232) to find out where and how to replace important cards like your driver’s license, health card, or SIN.
Final Thoughts
Identity theft comes in all forms, from the most sophisticated computer viruses to the most simple of schemes. Criminals are able to steal your identity and then reap the benefits all within a short period of time. This is why it’s so important to equip yourself with the information you need to help prevent identity theft.
