How to Protect Your Identity and Prevent Identity Theft

We all work hard for our money and take steps to protect it. What’s less obvious is how valuable your identity can be to criminals. Identity information—birthdates, home addresses, answers to security questions—can be gathered from social media or through scams and used to cause serious harm.

Every day people who would never hand over a credit card number on a random call or text nonetheless share personal details online. That information can be enough for fraudsters to impersonate you and open accounts in your name.

The fallout can be severe. If someone uses your identity to open a credit card, line of credit, or mortgage, you could be left responsible for those debts. Identity fraud can also damage your credit score, making it difficult to obtain a mortgage, auto loan, or other financing when you need it.

“Identity theft is not new, but we are seeing more and more of it,” says Octavia Howell, vice-president and chief information security officer at Equifax Canada. “We are seeing more and more scams perpetrated that enable identity theft to happen.”

Sometimes identity theft stems from events beyond your control, such as a data breach at a company or government agency or criminals buying information on the dark web. Still, there are practical steps Canadians can take to reduce the risk and limit the damage if it does occur.

6 safety tips to reduce your risk of identity theft

“You can’t really prevent it,” Howell says, “but you can make it harder.” Making your identity a tougher target often causes criminals to move on to easier victims. Consider these preventative measures:

• Know your online footprint. Search your name and review what information about you is publicly available. Protect non-public details such as usernames, passwords, account numbers, and your social insurance number (SIN). If a company you use reports a breach, be particularly cautious and change passwords on sensitive accounts.
• Monitor your finances closely. Regularly review credit card statements and credit reports for unfamiliar activity. Fraudsters often test cards or accounts with very small transactions—a “salami attack”—to see if a payment will go through. If you miss those small charges, the fraud can escalate into much larger losses.
• Avoid public Wi-Fi for banking. Do not access bank accounts or enter credit card information over unsecured public networks. Use a trusted, private connection or a VPN when handling financial matters online.
• Be cautious when someone requests personal details. Never provide personal or authentication information in response to unsolicited calls, texts, or emails. If a message claims to be from a bank, government agency, or a friend, contact the organization or person directly using a trusted phone number or website to confirm the request.
• Close unused or underused accounts. Leave no dormant accounts for fraudsters to exploit. For example, formally close paid-off loans or old retail accounts you no longer use.
• Use two-factor or multi-factor authentication (2FA/MFA). Whenever possible, enable 2FA for your email, financial accounts, and other sensitive services. An additional verification step can stop an attacker even if they have some of your personal information.

A convincing new scam to watch out for

A scam that has become common in recent years is the so-called “bank investigator” scam. In this scheme, victims receive phone calls or texts from a number that looks legitimate, and the caller claims to be an investigator from a bank, a credit bureau, or even law enforcement. They tell the victim there is suspicious activity on their account and request authentication codes, remote access to devices, or even permission to collect cards from the home.

Scammers sometimes follow up with someone posing as a lawyer or another authority and appear to corroborate the story. Once fraudsters have collected enough personal details, they can open new accounts—like car loans or mobile phone plans—and then fail to pay, leaving the victim responsible for the debts and the ensuing credit damage.

What to do if someone has obtained credit in your name

If you discover credit has been obtained using your identity, act quickly. Contact your credit card company and both major credit bureaus to report the fraud and request removal of fraudulent accounts and charges from your credit report. Determine exactly which personal details were compromised, and place fraud alerts or monitoring on your file.

Notify the Canadian Anti-Fraud Centre (CAFC) and your local police, especially if the scam involved threats or a visit to your home. If fraud continues, it can seriously damage your credit rating and take months or even years to resolve fully.

Prevention remains the most effective strategy. You may not be able to eliminate the risk entirely, but making your identity harder to steal significantly lowers the chance criminals will target you. “You just don’t want to be an easy target,” Howell advises. “Make it a little bit difficult for fraudsters—there are easier targets out there.”

Detect fraud earlier with Equifax’s credit monitoring

Equifax Complete Protection is a subscription service that monitors your credit and can alert you to suspicious activity on your credit report. Its features include daily monitoring and alerts for key changes, social media monitoring, dark web scanning, online data encryption, password management, parental controls, device protection, identity restoration support, and identity theft insurance (terms apply).

• Daily credit monitoring and alerts for important changes to your Equifax credit report
• Social media monitoring for suspicious activity
• Dark web monitoring of personal information you supply
• Online data encryption and password management tools
• Parental controls and device protection to reduce risks for family members
• Support from an identity restoration specialist if your identity is stolen
• Identity theft insurance up to $1 million for eligible out-of-pocket expenses (not available in Quebec)

Equifax Complete Protection is listed at $34.95 per month. For more details, consult the provider’s information and decide whether the features meet your needs.

Read more about fraud and scams:

• Relationship fraud and romance scams: What Canadians need to know
• How to protect yourself from identity fraud in Canada
• Why do Canadians keep falling for scams?
• How to protect your devices against identity theft