It happens every day. After receiving a random call, text, or email, people with credit card numbers that are never available for free on social media—including birthdays, home addresses, and details often used to answer website security questions.
The consequences can be terrible. For example, if a fraudster opens a credit card, line of credit or mortgage in your name, you may be financially liable. Your credit score may be affected when you need it, making it difficult for you to obtain credit (such as a mortgage or a car loan).
“Identity theft is nothing new, but we’re seeing more and more thefts,” said Octavia Howell, Credit and Information Security Officer and Credit Bureau Equifax Canada. “We’re seeing more and more scams that make identity theft happen.”
In some cases, identity theft is uncontrollable. For example, fraudsters may steal personal information through cyber attacks by corporate or government databases, or purchase on the dark web (hidden websites where criminals can flow through stolen data).
What steps can Canadians take to protect themselves from identity theft and if that happens, minimize damage?
6 security tips to reduce the risk of identity theft
Howell said: “You can’t really stop it. Here are some precautions:
- Learn about your digital profile. Google itself to find out what it feels like to know about you. Then focus on protecting undisclosed content, such as username, password, account number, and your Social Security Number (SIN). Be especially alert if the company or government department you are dealing with is hacked. Change your password on a sensitive account.
- Be alert to your financial situation. Check your credit card statements and credit reports and often charge unfamiliar fees. A common strategy is the “Salami Attack”, where criminals use small amounts to buy or transfer test credit cards or other accounts, perhaps for just $2. If it works, they will make thicker slices next time. “If you don’t catch it, if you don’t close it, it will continue and be a lot,” Howell said.
- Do not connect to public wifi, Especially when accessing your bank account or entering credit card information.
- Be vigilant when someone asks for personal information. Do not respond to requests from strangers, companies or institutions. If the request appears to be from your bank, friend, or the Canadian Income Agency (CRA), contact them using a different line to check the legality of the request. (Also read: How to protect your CRA account from scams.)
- Close inactive and unused accounts. For example, close a paid-up car loan. Unintentional accounts provide vacancies for fraudsters.
- Enable two-factor or multi-factor authentication Access your account as much as possible. This way, even if the criminal has some personal information about you, they will stop at the second level of security. “That’s something that can protect you sometimes,” Howell said.
Video social media scam
A convincing new scam
One scam that has become common over the past year is the “bank investigator” scam, Howell said. The victim receives a number of 1-800 calls or text messages, and the caller serves as an investigator in a financial institution or credit bureau or even a police officer. They claim to have detected fraud on your account and ask for an authentication code to access your device, and even ask to collect the card in person at home. Sometimes people who pretend to be lawyers have a second call and they seem to have reliable information.
For example, once they have enough personal details, fraudsters may use them to take out a car loan or turn on a cell phone plan and never pay for it, while the victim gets stuck in a bill.
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What to do if someone gets credit in your name
Howell stresses that if you find someone using your identity to commit fraud, please contact your credit card issuer and the Canadian credit bureau to scrub fraudulent charges from your credit history as soon as possible. Try to determine exactly which information has been compromised. Put fraud monitoring and fraud alerts on your account. Notify the Canadian Anti-Fraud Centre (CAFC) and local police, especially if it is possible to visit your home.
If the fraud persists, it can undermine your credit rating. “That could be devastating,” Howell said. It can take months or even years to fully restore control of your identity.
But the easiest process is prevention. The risk of identity theft is never zero, but you can reduce the chance that it will happen.
“You just don’t want to be an easy target,” Howell said. “You want to make it a little harder for fraudsters because the goal is easier there.”
Detect fraud with Equifax credit monitoring
Equifax completedTM Protection is a subscription service that keeps your credit report in touch and can remind you if your identity has been compromised. Features of this service include:
- Daily credit monitoring and alerts to critical changes to your Equifax credit report, such as new loans or credit card applications
- Zerofox’s social media monitoring to alert you to suspicious activities on your social media accounts
- Webscan, which monitors the dark web for personal information you provide
- NordVPN’s online data encryption and NordPass password management
- Parents’ controls range from Bitdes to restricting children’s access to websites and apps
- Devices prevent BitDefender to help stop trying and block viruses and malware
- If your identity is stolen, support from Equifax Identity Recovery Expert
- Identity theft insurance up to $1 million for out-of-pocket expenses (not available in Quebec)
Equifax full protection costs $34.95 per month. To learn more, visit the Equifax website.
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Equifax Complete Protection is a credit and cybersecurity protection service designed to help Canadians spot signs of identity fraud.
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This article is sponsored.
This is a helpful paid article, but may also have a product or service for the customer. These posts are written, edited and produced by Moneysense with designated freelancers.
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