Types of digital identity theft
Identity theft takes several forms. Financial identity theft: credit cards or loans opened in your name, bank accounts emptied. Medical identity theft: someone else uses your health insurance, which corrupts your medical record. Government identity theft: fake identity documents, tax fraud in your name. Account takeover: someone gains control of your online accounts (email, social media, banking). Each type has different consequences and calls for specific actions.
Early warning signs
Signs that your identity may be compromised: bills or statements stop arriving (fraudulent change of address), transactions you do not recognize, unexpected credit refusals (someone has damaged your score), calls from creditors about debts you do not owe, notices from the Canada Revenue Agency about unreported income, or being locked out of your online accounts (passwords changed). Acting quickly limits the damage.
How thieves get your data
Common methods: company data breaches (your SIN and date of birth exposed), phishing (fraudulent emails that trick you into giving up information), card skimming (devices on ATMs), dumpster diving (unshredded documents), malware and keyloggers on your computer, and social engineering (posing as an institution to extract information). Criminals often combine several sources to build your full profile.
Your identity is your most valuable asset. Once stolen, it takes months or years to fully recover.
Preventing identity theft
Protective measures: use strong, unique passwords everywhere (with a password manager), turn on two-factor authentication on all important accounts, check your bank and credit card statements regularly, place a credit freeze with Equifax and TransUnion (it stops new accounts from being opened), shred sensitive documents before throwing them out, be wary of unsolicited emails and calls asking for information, and check your credit report every year for accounts you do not know.
What to do right away if you are a victim
As soon as you detect fraud: contact your financial institutions immediately to freeze the compromised accounts, change all your passwords (starting with your email), place a fraud alert with Equifax and TransUnion (free), file a police report (needed to dispute fraudulent debts), contact the Canadian Anti-Fraud Centre (1-888-495-8501), and document everything (keep copies of all reports and correspondence). Acting fast can limit the financial damage and speed up recovery.
Recovery and legal remedies
Recovery can take a long time. Steps: dispute fraudulent debts in writing with creditors, ask for your credit file to be corrected, and in Quebec, know that Law 25 gives you the right to find out how your data was compromised. You can sue negligent companies, and consider an identity monitoring service (often offered free by the company responsible for the breach). Help is available: Equifax and TransUnion assist victims, Option consommateurs offers free support, and some lawyers specialize in identity theft. Full recovery takes 6 to 12 months on average.