What to do if you are a victim of Identity Theft

No matter how cautious we about protecting our personal information; crooks will always come up with creative ways to steal our identity. Whether it was a small personal oversight or an on-line security breach, the important thing is to fix it – and fast.

Unfortunately once your identity is stolen, there is no quick fix.  John Russo, chief privacy officer for Equifax Canada, says many people have no idea their personal information has been compromised until the collection agencies start calling.  “The first thing to do is request a copy of your credit file,” he recommends.  “Review it carefully, and report any discrepancies for investigation and resolution.”

In 2000, Equifax had 7,500 fraud victim notifications on its system; by the end of 2012 they had 28,651.  A consumer must pass through several levels of authentication such as confirming employment information, previous addresses and filing a sworn affidavit with the agency before a fraud alert can be placed on their account.

If you suspect you are a victim of identity theft you should first contact the police and then the Canadian Anti-Fraud Centre, recommends Corporal Tim Laurence of the RCMP Integrated Counterfeit Enforcement Team.   You can get the form online at www.antifraudcentre-centreantifraude.ca.

Russo also points out that each credit-issuing agency has a different procedure; you may need to provide additional information to the creditor’s security department to prove your identity.

An ID monitoring service can take up to three years and 600 hours to restore your identity once it has been stolen.  “The hardest piece to replace is your SIN as it defines you as a Canadian resident and citizen.  You can’t just change it – it is tied to years of personal history.”

In addition; Staff Sergeant Paul Lobsinger, with the Waterloo Region Police fraud squad points out the need to be aware of the terms and conditions concerning the use of your debit card PIN, and whether the bank covers an unauthorized withdrawal.  “If the bank rules the PIN was generally known (or too easy to figure out), it may not absorb the loss, leaving the consumer on the hook.”

Once you make a report, be aware some of your otherwise unaffected credit cards may be frozen while the investigation is being conducted.  You will also need sworn affidavits to accompany your documentation which can cost $100 or more to prepare.  And since each credit-granting agency will require an original; the costs can add up.

Some good news, Brad Brian of Manulife Securities, says identity theft is less likely to impact your investment accounts due to compliance and identity verification requirements by advisors.  So next time we update your Know Your Client form, know that the information gathered is for the Anti Money Laundering Act, which has been put in place to protect you and your money.

Have a great weekend,

Tracey

Source:  Advisor.ca, original article by Lisa MacColl, posted 12-13-13