Identity theft is something you’ve probably heard of from the movies. However, having your identity stolen is anything but entertaining. It can change your life forever and lead to losses in more ways than one. That’s why we at BrokerLink have prepared a guide to help you understand identity theft and how to avoid it. So what is identity theft, and how can it affect your life? It’s time to find out.
Identity theft explained
What is identity theft? It sounds like a scary term, but that’s because it is. Identity theft is stealing personal or financial information from another person to commit fraud. Financial identity theft includes making unauthorized transactions or purchases. There are several ways to commit identity theft, and if you fall victim to this crime, your credit, finances, and reputation can be damaged.
Identity theft types
There are many types of identity theft, including, but not limited to, financial identity theft, criminal identity theft and child identity theft. Each type has its own repercussions, and an identity thief will often stop at nothing to achieve their goals. Here are some of the most common types of identity theft tactics:
Financial identity theft
Financial identity theft is a type of fraud that happens when someone uses another person’s personal information for their personal financial gain. For example, an identity thief may use your bank account or credit cards to steal money from you to make purchases. It’s common for the person who steals your information to use it to open a new financial account or to receive government benefits using your name.
There are several ways for an identity thief to get a hold of your credit card and banking information. Phishing is the most common way to steal financial information online. What is phishing? Well, fraudsters will send you a message that looks like it’s from your financial institution. This can come in the form of an email or text message saying that there is a problem with your account or payment information or suspicious activity like multiple login attempts have taken place. Hackers will hope that you use the link to log into your account so they can steal your password. This is often done by clicking on a link they sent or opening an attachment.
These links and attachments often contain malware, also known as malicious software. Malware can give your computer viruses, infect your files, or install spyware. None of these things are good because they can steal your information and data without you knowing.
Synthetic identity theft
What is synthetic identity theft? Synthetic identity theft is when someone uses fake or real information or a combination to create a fake identity. A common occurrence is an identity thief using a real SIN with a name that doesn’t belong to that number. Children and deceased people are often the victims of this crime because this information is not as closely monitored as it should be.
Tax identity theft
When a fraudster uses your personal information to file a tax return and get a refund, it’s called tax identity theft. GST/HST rebates and refunds are taken the most often. You should protect access codes, user IDs, passwords and personal identification numbers (PIN) at all costs. The Canada Revenue Agency (CRA) advises you to take precautions when choosing your tax preparer.
Child identity theft
Children younger than 18 are not allowed to have credit cards and, therefore, don’t have credit reports. This makes them all the more vulnerable to identity theft. Someone can use their information to open accounts without them knowing until they’re much older. Child identity theft victims might not even discover their identity has been stolen until they apply for credit cards and find unpaid accounts under their name.
Senior identity theft
Unfortunately, many people, including identity thieves, take advantage of seniors as they age. That’s because it’s harder for them to recognize certain scams. Various types of identity theft, including financial and tax, are never out of the question. Make sure to educate your elderly family members and friends to keep them safe from scams.
Estate identity theft
After someone passes away, people will monitor their accounts less frequently. That makes it easier for scammers to open accounts using their names to steal money. After all, financial institutions do not monitor accounts of people who are already deceased.
Criminal identity theft
Criminal identity theft is one of the worst types. This identity theft occurs when someone commits a crime and pretends to be you. What does that mean? A criminal has provided your information to law enforcement after getting arrested. However, you won’t know about it until consequences are issued. For example, an unpaid speeding ticket under your name can result in a judge sending out a warrant for your arrest.
The first step in avoiding getting your identity stolen is understanding the types. By being aware, you will be able to protect your identity from potential fraudsters better. Identity theft can affect a wide variety of groups, so we will review how thieves steal identities next.
Tactics used by identity thieves
Identity thieves are devious and tactical. Unfortunately, they know about multiple ways to access your private information. By understanding what they do, you can find ways to stop your identity from being stolen. These are some common methods identity thieves use to access your personal or financial information:
Online data breach
In this day and age, you’ve probably heard of online data breaches. Whether they’re accidental or intentional, they allow fraudsters to get a hold of your information online.
Data thieves can steal a person’s identity; when an organization’s employee leaves a work computer somewhere, it can be stolen. In other cases, criminals can trick an employee into clicking on a link that downloads a virus or malware onto their computer networks. The result is that people’s data, such as credit card and bank card information, is stolen.
Phishing
Tricking a person into clicking on a suspicious link is a common way to steal money and personal information. This is often done via email, and attempts are made to get the user to download an attachment.
This type of identity fraud isn’t limited to one type of person. These attacks can affect anyone, from someone casually browsing their computer to a worker at a government agency.
Unprotected wifi networks
Using free public Wi-Fi can be a dangerous game because data thieves and hackers can be anywhere. Avoid entering personal information into a website if you are in a public space, and keep a watchful eye if you have to do transactions somewhere, like a library or coffee shop. Even networks with passwords aren’t always safe because who knows who has access?
Stealing mail
Mail can tell a lot about a person. Someone stealing your mail often isn’t a case of your neighbour missing out on their flyers. In fact, criminals steal mail to learn more about their victims and to commit identity fraud. You should be suspicious if you haven’t received mail from your credit card companies in a while. Someone could be stealing information from your mail, such as your Social Insurance Number, to use stolen credit cards and open fraudulent bank accounts.
Digging through the trash
Your garbage or recycling bin can be a gold mine for identity theft. If you tend to throw your credit card statements and letters from your bank into the trash without thinking, please think again. It could allow a criminal to access your financial statements, tax documents, and personal information. It’s one more thing that makes stealing your identity that much easier.
Missing Social Insurance Number
You use your SIN for almost everything, from opening bank accounts to getting jobs. If you lose your wallet with your card and driver’s licence inside it, you’re in trouble. These personal identification numbers should be protected at all costs. If you get mugged, a criminal could have more than just access to your financials.
Leaving things out in the open
Yes, you should protect your data online. However, this also applies to real life. We invent strangers into our homes from time to time — whether it’s a repair person, housecleaner or anyone else, you can’t be too careful. Credit cards and debit cards, along with other personal information, should not be sitting in plain sight. Even the most trustworthy people can have hidden motives, so keep the phrase “out of sight, out of mind” in the back of your head.
There are many ways for a criminal to get a hold of your personal information. It’s important to keep track of your important documents and to be aware when you’re out in public and at home. Absentmindedly leaving important information in a vulnerable place makes it easy for it to fall into the wrong hands. However, next, we’re going to tell you how to know if you have fallen victim to this crime.
How to know if your identity has been stolen
Identity theft is a serious crime that shouldn’t be taken lightly. However, it’s not always the most obvious crime. Someone stealing your personal details can be worrisome, but how do you know if someone has gotten a hold of such information? Let’s find out below:
Unusual credit card charges
Financial identity theft is very common. Fraudsters will often steal your credit cards. Online shopping is thriving more than ever. That makes it easier for an identity thief to take your credit card information and go on an online shopping spree.
Set up your online bank account or app to email, call or text you when suspicious activity is detected. That way, if someone starts charging your credit card, you can call your credit card company to cancel the card and dispute the charges with your bank.
Denial of credit card or loan applications
Unless you have a bad credit score already, your credit card or loan application should be approved. That’s why you should investigate. If your credit score has always been in good standing, someone could be charging your credit card without your permission. Speak with a representative from your credit card company to confirm if this is a case of identity theft.
A new account you didn’t open
An identity thief can open a new account under your name if they collect information like your name and address. In the case of financial identity theft, you should watch your credit report. They will show you if someone has opened a new account under your name without your permission. If you receive bills addressed to you from fraudulent accounts, you should address them as soon as possible.
Data breach notification
Companies have to tell customers when their information has been impacted by a data breach. Saving your payment information makes paying monthly bills easy. However, if somewhere like a streaming service says their database has been hacked, fraudsters might be able to access your credit information. Watch the news and your email to ensure no one can use your stolen credit card information.
Unusual calls from debt collectors
Those who commit fraud will often spend large sums of money on your credit card, which will appear on your credit card statements. However, someone might have yet to charge money to your account, and the call may be a scam. When this happens, your best bet is to check your credit report for new accounts. If someone opens accounts under your name, you could be held responsible, so it’s better not to take the risk.
Mail that isn’t yours
Synthetic identity theft occurs when someone opens accounts under a fake name. One of the most obvious fraud alerts is when you start receiving mail with another person’s name on it. The fraudster may have used your address and Social Insurance Number (SIN) with a different photo to get access to credit cards under a fake name.
Identity theft can affect your life in multiple ways. Having someone else use your identity can lead to financial repercussions and hurt your reputation. That’s why you should keep an eye out for any of these signs. By doing this, you can contact the appropriate institutions before too much damage is done. We will provide what you need to make a thorough report.
What to do if your identity is stolen
You’ve done everything you can. From checking credit card statements regularly to being safe online, but your identity got stolen. What now? There are a few things you can do to stop identity fraud from continuing. Here are our tips to get your life back on track after having your identity stolen:
Get in touch with the companies where the fraud has occurred
First off, you need to contact the company that the fraudster is using to steal your identity. Keep in mind that depending on the type of fraud, the documents you require will differ. For example, if someone uses a financial institution to open credit cards or bank accounts under your name, you should ask for a copy of the application request. This will show your SIN and name used to apply. Then, you need a letter including accurate information stating that you did not make these purchases or open the account.
Gather all the documents you need
When reporting identity theft, you’ll need a paper trail. You should record everything about your report as you’re doing it. Take note of everything from dates to official names, phone numbers, conversations and processing times for each interaction. It will allow you to show evidence of everything you are doing to get this problem fixed.
Speak with someone from your bank
When you call your financial institution, you should ask them to add a victim of identity theft notice to all of your accounts. This will stop whoever has stolen your information from draining your bank accounts. You can also ask for advice on how to increase security on your accounts to prevent fraud in the future.
File a police report
If someone has stolen your identity, you should report it to the local police. A police report is essential in these cases because the police start an investigation and provide a fraud report number. Keep the officer’s name, badge number, phone and email address in your notes. You should also get your own copy of the police report to provide evidence of fraud and protect yourself in the future.
Alert Service Canada in person if someone has your SIN
In the event that someone gets a hold of your Social Insurance Number (SIN), you need to let Service Canada know right away. Suppose someone uses your SIN to apply for credit cards. In that case, you will require the police fraud report number, the previously mentioned police report, your birth certificate, photo ID (e.g. a valid passport or driver’s licence), the credit report showing the fraudulent accounts, the credit application and the aforementioned letter from the financial institution. Speak with a Service Canada representative before booking an appointment to make sure you have everything you need.
Contact the Canadian Anti-Fraud Centre
The Canadian Anti-Fraud Centre (CAFC) is responsible for handling all types of fraud alerts. By doing this, you will help others who have fallen victim to identity theft. This data will prevent people from providing financial information and other personal details to scammers in the future.
When someone steals your identity, you need to report it right away. By following these steps, you’ll know what to do if someone else is using your identity for malicious purposes. Once you have everything you need, you can move forward with the process and follow our tips to avoid this situation in the future.
Ways to avoid identity theft
Identity thieves are smart, but you can be smarter. That’s why we have developed a list of tips to help you keep your identity intact. Follow our useful lives, and you won’t have to worry about anything. Here’s what you can do to stop identity thieves dead in their tracks:
Be cautious about who you share personal or financial information with
Your personal and financial information are invaluable tools for identity theft. You should take precautions when sharing this information with anyone. You should find out the following:
- How it will be utilized
- The purpose behind sharing
- Who will get access
- How it will be protected
- If there is a chance of harm or other damages
You should only provide the necessary information when required. Your birth date and Social Insurance Number (SIN) help define your identity. These are used in credit reports and computer databases. Always keep this information a secret from everyone except reliable sources such as the Canada Revenue Agency and your financial institutions. Not everyone understands how important this information is. Have a chat with your children or any other family member you feel may be vulnerable to scams.
Be careful with credit cards and your bank account
Always remember when your credit card bill is going to arrive, and call your credit card company if you have yet to receive it. Additionally, you should check your credit card and bank statements to ensure they are free of suspicious transactions.
Recently, many of us have embraced the convenience of online banking. That makes checking your bank account and credit report easier than ever. However, you should connect to your online banking using public Wi-Fi. When you do, you risk fraudsters stealing your data and financial information.
Always create a separate account on your computer that you use exclusively for banking and online financial activities. Think of a password that you aren’t using anywhere else to prevent thieves from accessing your bank accounts.
Secure your mailbox
Someone can read your mail and gain a lot of information. To prevent mail theft, put a lock on your mailbox or use a drop slot. If your only option is using a regular mailbox, try to pick up your mail shortly after it’s been delivered, and make sure your mail is forwarded to your new home if you end up moving.
You should also avoid throwing anything in the recycling. Shred and destroy envelopes and letters with your name and address on them, particularly ones with preapproved credit card offers, insurance and loan applications, bills, and credit card receipts. If you plan on going on a trip, ask a trusted neighbour to pick up your mail. Additionally, Canada Post offers a mail-holding service for a small fee.
Stay safe on the phone
One of the oldest tricks in the book is scammers asking for your credit card number over the phone. You should never give out your credit card numbers or other personal information over the phone. Only do so if it’s a trusted person or you made the call on your own.
If you receive an unexpected call from someone asking for your personal financial information, call the real organization to ensure you aren’t getting scammed. Financial institutions and other trusted organizations will not ask for this information without proper protection.
Keep your wallet close
When you carry your wallet around in public, only bring the essentials. The only forms of ID you should have with you are your driver’s licence and health card. Your SIN card, passport, and birth certificate should be left at home somewhere safe. Never leave your wallet or any important documents in the open. For example, your vehicle is a goldmine for identity thieves if you leave your wallet or important pieces of information inside it.
Protecting yourself online
It's essential to stay vigilant and protect your digital life by following these crucial steps:
Using anti-virus software
When browsing the web, you should protect your devices with firewalls and virus protection. Remember to keep these types of software and operating systems on your devices up-to-date.
Keep your accounts safe with passwords
Always use a password on your devices because devices like computers and cell phones are loaded with personal information. Your password should be unique and hard to guess. Oh, always avoid using the same password more than once.
Pay attention when using public wifi
When browsing the web using public wifi, you should always be careful. Identity theft is common because, in public spaces, anyone could be watching or filming your every move. Someone could be stealing your passwords and information when you turn your back for a moment.
Avoid using online banking and making online purchases to the public to protect your credit card and financial institution from falling into the wrong hands. Your data is not safe when you’re using a public network. Hackers could easily steal your information from right under your nose.
If you must log into one of your accounts in a public space, do so cautiously and ensure no one is watching over your shoulder. Pay attention to the lock icon by the URL, and log out of your account when you are done.
Take precautions while online
Sharing personal information online can be dangerous. Avoid sharing it or posting about it online when possible—you never know who might read your posts. Be wary of suspicious emails, messages, and texts and avoid replying to them, especially ones that ask for personal information. Some fraudsters are very clever and can make these messages look legitimate, so if you are unsure, contact financial or government agencies.
Turn off wifi and Bluetooth when you’re not using them. When you leave these settings on, anyone could steal your data without you knowing. This can happen in public spaces where the network is open for anyone to access.
In recent years, social media has skyrocketed in popularity. That’s why you should try to protect your social media accounts. However, social media increases your risk of identity theft. Never post your location online because scammers can use this to their advantage.
Getting rid of your device
Getting a new cell phone or computer is exciting, but how can you safely dispose of your old one? If you are getting rid of your device, recycling it, or selling it, there are some precautions you can take. Consider resetting your device to factory defaulting, overwriting, reformatting, or destroying it. After all, you wouldn’t want your personal information to fall into the wrong hands.
Whether you’ve fallen victim to this crime already or are learning to be more cautious, these tips will help you stay safe. From ID theft to suspicious text messages, identity theft can happen anywhere at any time. That’s why you should take precautions when sharing your personal information, whether using public Wi-Fi or carrying important documentation with you.
Contact BrokerLink for all your insurance needs!
Having your identity stolen can cost you a lot of money. That’s where identity theft insurance comes in. Unlike third-party liability car insurance, this type of crime coverage is not mandatory. However, it can be helpful if you find yourself in a situation where you suffer huge financial losses.
This form of identity theft protection will allow you to protect your assets if someone steals your information and uses it for malicious purposes. In the event that you fall victim to this crime, we will help you contact the appropriate institutions, including banks and credit card companies.
If your credit card or driver’s licence goes missing, you should address the problem immediately. What are you waiting for? Contact BrokerLink to learn more about car insurance, home insurance, and identity theft insurance today.
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