Identity theft (also called identity fraud) is the stealing of someone’s personal information and using it to commit fraud. Basically, someone assumes your identity and uses it to rack up debts or commit crimes.
“Identity theft is the fastest growing consumer crime in North America,” said Consumer and Business Services Minister Jim Watson.
It is a relatively easy crime to commit and can be very profitable. Chances of getting caught are slim; by the time the police are alerted, the criminal has usually moved on, often to another province. The Canadian Council of Better Business Bureaus estimates identity theft costs $2.5 billion a year to consumers, banks, credit card firms, stores, and other businesses.
How Common is Identity Theft?
Cases of identity theft increase every year. According to the Canadian Anti-fraud Call Centre, called Phonebusters, there were nearly 8,000 identity theft complaints made by the general public in 2006 in Canada. The losses were estimated at CAN$16,283,000.
In the U.S., the Federal Trade Commission said that in 2004, there were 10 million victims of some sort of ID theft and total losses of $54 billion.
How Do Thieves Get Your Personal Information?
There are many ways thieves get your personal information.
- They steal your mail out of the mailbox.
- They steal your purse, wallet, or briefcase.
- They redirect your mail.
- “Dumpster Diving” – rifling through garbage cans, dumpsters or recycling depots.
- “Shoulder Surfing” – looking over your shoulder as you enter your Personal Identification Number (PIN) at an ATM machine.
- “Skimming” – making a second swipe of your card without your knowledge onto an electronic device called a skimmer. The skimmer copies the data off your card’s magnetic strip and is later used to make a fraudulent card.
- “Spoofing” – Using authentic-looking e-mails or Web sites to entice consumers to enter personal information.
- Taking a photo of your credit card with a camera phone.
- Installing fake ATM devices or tampering with existing machines.
- Bribing or hacking their way into large databases. Criminals may also break into offices to steal hard drives, obtaining information that way.
What do Thieves do With Someone’s Personal Information?
It is terrifying what an identity thief can do with a person’s name, address, and birth date. With a person’s Social Insurance Number, passport data, birth certificate or driver’s license, the possibilities are almost limitless.
- Apply for and get a credit card.
- Rent, lease or buy a vehicle.
- Go on a shopping spree.
- Buy a cellular phone, racking up massive long-distance charges.
- Open bank accounts and lines of credit.
- Empty your bank account.
- Get a loan.
- Get a mortgage.
- Get a second mortgage.
- Take a luxury vacation.
- Get fake passports made in your name.
Credit cards are the number one problem followed by credit lines and mortgages. Account takeovers are another big problem.
How Do You Know if Your Identity Has Been Stolen?
People usually find out they are a victim of identity theft when one of the following happens:
- Your bills, bank statements or credit card statements do not arrive when expected.
- You receive credit card statements for cards you did not apply for.
- A collection agency calls about unknown debts.
- Unauthorized transactions appear on your bank or credit card statement.
- Your credit report shows accounts you did not open or debts you did not make.
Get a Credit Report
At least once a year, it is a good idea to get a copy of your credit report. Order a copy from both major credit bureaus in Canada, Equifax and TransUnion. You can do this once a year at no charge if you order your credit report through the mail. There is a charge for online or e-mail credit reports. Immediately report any inaccuracies to the credit bureaus.
Your credit report contains six years of information on your loans, credit cards, banking information and public records such as bankruptcies. It will also show who has accessed you credit report.
Extra Precautions
“The perfect solution would be to monitor your credit report 7/24,” says Barry Elliott, PhoneBusters Creator and Co-ordinator and Detective Staff Sergeant of the Anti-Rackets Branch with the Ontario Provincial Police. “One company that is now in Canada, and there are a number that may be coming in, is creditalert.ca. It is now available to the public and is being marketed through different banks. You can sign up with them and they’ll monitor both your credit files at Equifax and TransUnion 7/24 and if there are any changes or credit checks done on you, they’ll notify you about it right away. It works out to about $15 a month. Technically, if everyone was on something 7/24 in Canada, all 34 million of us, there would still be theft of I.D. but it wouldn’t do them any good.”
Elliott shares his thoughts, “We are a long way from plateauing on the growth of identity theft. I expect it will grow for another few years before it flat lines and goes down. The only way to do that is by getting the public more aware of what is going on and helping the public help us fight identity theft.”
Information to Keep on Hand
Keep all your financial information in a safe place in the event you ever need it. Make additional copies for other members of your household.
For example:
Driver’s License Number
Social Insurance Number
Passport Number
Credit Card Name, Number, and Expiry Date
Credit Card Contact Number
Bank Account Number
Mortgage Number
Mortgage Firm Contact Number
Library Card Number
Library Contact Number
Video Store Card Number
Video Store Contact Number
Toby Welch - Toby is a full-time freelance writer who specializes in magazine articles, online writing, e-books, and manuscript editing.
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