Key Takeaways:
- Identity theft is when someone uses your personal information to commit fraud in your name
Warning signs include statements you don’t recognize, missing mail, and calls about applications you never made
If you’re a victim, report it to the police, your bank and both credit bureaus
Reviewing your credit report regularly is one of the most effective ways to catch fraud early
Identity theft, explained
Identity theft is a serious crime where your personal information — anything from your name, driver’s licence or Social Insurance Number — has been compromised by an imposter who intends to commit fraud in your name. With your stolen personal information, someone can obtain false lines of credit and rack up significant debt in your name. With a stolen identity, someone might even hide behind your name in a legal matter. Identity fraud is a major problem and happens more often than you might think.
How do I know if I’m a victim of identity theft?
Signs of fraud vary, but typical indicators include:
A creditor tells you it received an application for credit with your name, address and/or Social Insurance Number
Credit cards or banks approve or decline an application you never made
You no longer receive your credit card statements in the mail
Your credit card statement includes unusual purchases
A collection agency contacts you about a defaulted account you never opened
Getting your credit report from TransUnion is an effective way to help you detect identity fraud. Review it for accounts you don’t recognize or inquiries from companies you’ve never done business with. These could be signs someone is applying for credit in your name and it’s best to catch it early. While you can’t always prevent identity theft, you can be proactive and minimize the damage.
What should I do if I’m a victim of credit fraud?
If you suspect someone has stolen your identity, take these steps:
Report the incident to the police, especially if it involves stolen identification, and insist on receiving a complaint number
Contact the Canadian Anti-Fraud Centre for information and guidance
Report all stolen credit cards to the issuers and request new cards, then follow up in writing
Notify your bank if your cheques were stolen and close your account
Be prepared to fill out affidavits of forgery for banks, credit grantors and recipients of stolen cheques
If you believe someone used your Social Insurance Number, contact your local Service Canada office for advice
Get a new bank card, account number and password — and never reuse your old password
Notify Canada Post Postal Security if you suspect your mail was stolen
Contact TransUnion’s Fraud Victim Assistance Department and Equifax Canada to add fraud alerts to your credit files
Tips for avoiding fraud
One of the best ways to detect fraud is to review your credit report regularly. You can get your consumer disclosure free of charge — and check for unauthorized activity from both major consumer reporting agencies. A few simple habits also go a long way:
Carry only the ID and cards you need — leave your SIN card, birth certificate and passport at home
Advise creditors of address changes, redirect your mail and consider a lockable mailbox
Take your receipts with you and shred them before discarding
Never leave your purse or wallet unattended or in open view in your car
Destroy cheques immediately after closing a chequing account and store courtesy cheques securely
Reconcile your statements promptly and challenge purchases you don’t recognize
