Business & Personal Finance

A few months ago, I received an e-mail from my bank that warned me about a problem with my account.  To fix the problem, the e-mail requested that I immediately submit my account information to them on line.  Instead, I decided to visit my local bank branch and ask staff directly about the e-mail.  They knew nothing about the problem or the e-mail.  Staff immediately checked my account.  All was fine.  I was told that the bank would never ask for personal or financial information by unsolicited e-mail or telephone.

The e-mail looked authentic.  If the e-mail's instructions were followed, I would have become a victim of identity fraud and my credit and financial reputation would likely have been ruined.

In an article entitled 'When Bad Things Happen to Your Good Name' (McMaster Times, Fall 2005, Pages 10 – 11), Danelle D'Alvise warns "Your personal information is used for anything from obtaining new credit cards, taking out loans, leasing an apartment or securing a mortgage to obtaining passports.  While you likely won't be paying huge sums of money from your own pocket to repay the fraud, you will spend a huge amount of time restoring your credit reputation – it's been estimated that victims of IDT spend about 600 hours repairing the damage done to their good name."

Identity theft (or identity fraud) occurs "when your personal information is collected and used by someone identifying him/herself as you and making transactions or requests on your account(s).  These transactions may include taking over your credit accounts, opening up new ones or accessing your bank accounts." (Source: Tips to Prevent Identity Fraud by the Financial Consumer Agency of Canada)

Phonebusters, a central agency in Canada that collects information on identity theft,  recommends that you ask marketing, research or charity callers for:

Detailed, written information that you can check yourself.

Time to think about the offer.  Scam artists pressure you for an answer, saying the offer will expire or go to the next person if you don't act now.

Valid references and the means to contact them.

A call-back number.  But beware – a crook can give you a number where a colleague is standing by to finish taking your money.

Here are some additional tips from the Financial Consumer Agency of Canada to avoid identity fraud:

Be careful about sharing personal information and don't give out more than you need to.  Only share your personal information with companies you know and trust.

Put other ID documents (SIN, birth certificate, passport) in a safe place.

Shred 'unwanted' or 'no longer needed' documents with personal information (including your name and address); for example transaction records, credit applications, insurance forms, cheques, financial statements, and tax returns.

Keep your wallet or purse out of reach – in public places, crowds and while on public transportation.

When making a purchase, keep your card in sight, and make sure that the card returned to you is yours.

Do not give out any personal information or a credit card number over the phone on unsolicited calls, even if the caller claims to be from a legitimate company.

In the same way, do not give out this information by e-mail as it is not a secure method of transmission.

When on the Internet, make sure the web site you are using is secure before transmitting personal information. URL beginning with https:// (note the "s") and small lock displayed in your browser.

Carry a minimum number of credit cards and personal identification information with you.

Don't leave personal information lying around at home, in your vehicle or at the office.

Lock you household mailbox if possible.  If you are going to be away, arrange for a trusted neighbour to pick up your mail.  You can also go to your local post office (with identification) and ask for Canada Post's hold mail service.  There will be a charge for this service.

Ensure that your computer firewalls/spyware are up to date to protect personal information that might be stored.

When you receive a renewal or replacement for a document or certificate that contains identity information (such as your driver's licence or vehicle registration), make sure you destroy – preferably by shredding – the old one.

For more information on identity theft and how to protect yourself, check out the following titles at the Toronto Public Library:

Abagnale, Frank W.  Stealing Your Life : The Ultimate Identity Theft Prevention Plan.  1st Ed.  New York:  Broadway Books, 2007.

Arata, Michael J.  Identity Theft for Dummies.  Hoboken, NJ:  Wiley Pub., 2010.

Collins, Judith M.  Preventing Identity Theft in Your Business.  Hoboken, NJ:  Wiley, 2005.

McWaters, Graham and Gary Ford.  Canadian Guide to Protecting Yourself from Identity Theft and Other Fraud.  Toronto:  Insomniac Press, 2007.

Mitic, Scott.  Stopping Identity Theft:  10 Easy Steps to Security.  1st Ed.  Berkeley, CA:  Nolo, 2009.

Weisman, Steve.  50 Ways to Protect Your Identity and Your Credit.  Upper Saddle River, NJ:  Pearson/Prentice Hall, 2005.