CANADA HOW TO PROTECT AGAINST IDENTITY THEFT Digital Home Canada - Twelve Ways to protect yourself from Identity Theft:: "Twelve Ways to protect yourself from Identity Theft
Friday, 10 March 2006
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A study released this week by Ipsos Reid reveals that one-quarter of Canadian adults have either themselves personally (4%), or know someone who has (20%), been subject to identity theft.

This week the Digital Home advisor looks at what identity theft is, how it happens, suggests twelve ways you can protect yourself from it and what steps to take if you think you are a victim.

What is Identity Theft?

The federal office of the Privacy Commissioner of Canada defines identity theft as the unauthorized collection and use of your personal information, usually for criminal purposes. The government says that every year, thousands of people are victims of identity theft.

Why do criminals want this information? Your name, date of birth, address, credit card, Social Insurance Number (SIN) and other personal identification numbers can all be used to open credit card and bank accounts, redirect mail, establish cellular phone service, rent vehicles, equipment, or accommodation, and even secure employment.

If a thief gets a hold of your personal information, then they can rack up huge bills, charges, bad cheques, and taxes that would become your responsibility.

In 2004, PhoneBusters National Call Centre, the national call centre dedicated to the prevention of deceptive telemarketing, received 11,001 identity theft complaints by Canadians, amounting to more than $18.3 million in fraud losses.

How does it happen?

Identity theft can occur in many ways but the following are some of the more common examples of how identity theft is perpetrated.

Dumpster Diving

Identity thieves often steal purses or wallets, and steal newly issued cards or credit card applications from your mailbox. Some, known as "dumpster divers," will even rummage through trash to pick out bank and credit card statements. Letters that contain "pre-approved credit-card" offers, if not shredded or destroyed, can be sent back to the issuing bank requesting that the card be sent to the recipient (i.e., you), but at a new address of the identity thief's choosing.

Shoulder Surfing

Some identity thieves also engage in "shoulder surfing": looking over your shoulder or from a nearby location as you enter your Personal Identification Number (PIN) at an ATM machine. By installing a fake ATM device that reads your card's encoded data, or by distracting you while your card is taken or switched with another, an identity theft can then use your PIN to drain your bank account without your knowledge.

Skimming

Identity thieves also "skim" or "swipe" customer credit cards at restaurants or cash stations, using an electronic device known as a skimmer. The skimmer records the personal information data from the magnetic stripes on the backs of the cards. Identity thieves then transfer or transmit those data to another location, sometimes overseas, where it is re-encoded onto fraudulently made credit cards.

Phishing

Many criminals who want to obtain personal data from people online use a technique known as "Phishing": the creation of e-mails and websites that appear to belong to legitimate businesses, such as financial institutions or online auction sites. Consumers receive e-mails claiming to be from a legitimate business are often directed to a website, appearing to be from that business, at which the consumers are directed to enter large amounts of personal data. In fact, the criminals who created these e-mails and websites have no real connection with those businesses. Their sole purpose is to obtain the consumers' personal data to engage in various fraud schemes.

Inside Sources and Theft of Data

Law enforcement agencies in North America have noticed a significant increase in efforts by identity thieves to access large databases of personal information that private companies and government agencies maintain. Criminals have broken into offices to steal computer hard drives, bribed or compromised employees into obtaining personal data for them, and hacked into databases.

Next: Twelve Ways to Protect Yourself from Identity Theft

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