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Victim of Identity Theft?

Grrr! Pierre has just been told by a collection agent that he owes $2,000 to Gold Bars Bank. According to the agent, Pierre used up his credit limit and has failed to make a single payment on the debt.

“What's going on?" Pierre asked the agent. "I don’t even have an account with Gold Bars Bank!”

Clearly, Pierre was a victim of identity theft.

WHAT IS IDENTITY THEFT?

Identity theft can mean a number of things, but in general, it refers to obtaining some kind of advantage (money, credit, property, a passport, etc.) through the use of someone else’s identity without permission.

Identity theft usually involves two steps:

1. The thief collects key pieces of information on a person (date of birth, social insurance number, banking information, etc.).

2. The thief then uses this information to obtain goods or services (credit cards, a cell phone, furniture, etc.) in the name – and at the expense – of the victim.

How do identity thieves get this information? There are the “classic” ways: stealing wallets or mail, rifling through someone’s garbage or having a corrupt contact (a “mole”) inside a financial institution or government agency.

These methods are still widespread, but identity thieves now have several new tools at their disposal thanks to the Internet: spam (junk email), spyware, information piracy, etc. For example, a spam email that tells you to click on a link to update your bank account is rarely trustworthy. More often than not, the website in the email isn’t the bank’s real website, but rather a site that has been created by an identity thief to collect information on future victims.

WHAT THE LAW HAS TO SAY

As you might suspect, stealing someone’s identity to get something that you don’t have a right to or that you would normally have to pay for is illegal. In fact, it is a criminal offence that can lead to prison time and a criminal record.

The law was recently changed to tackle identity theft more effectively. The law now criminalizes not only the fraudulent use of stolen personal information, but also possession, transferring and selling of this information. For instance, it is now illegal to possess, without valid reason, government-issued personal identification documents (e.g., passport, driver’s license, birth certificate) of another person. These new measures are aimed at stopping identity thieves before they strike.

WHAT CAN YOU DO IF YOU ARE THE VICTIM OF IDENTITY THEFT?

Here is some advice to follow if you, like Pierre, think someone has stolen your identity:

• Limit the damage: advise your bank as soon as possible (in writing) that you have been the victim of identity theft. Replace all your government-issued documents.
  
  
• File a police report and keep a copy. Generally speaking, you are not responsible for debts or contracts to which you did not give your consent. Having a police report documenting your claim of identity theft will be helpful in erasing any debts the thief racked up in your name.
  
  
• Contact credit agencies to ensure your credit report is corrected (Equifax Canada and TransUnion).
  
  
• Advise Canada Post of the situation to make sure your mail is not being intercepted.
  
  
• If the thief cleared out your bank accounts and the bank refuses to compensate you, you should check your contract with the bank to determine your rights. Don’t hesitate to speak to a bank supervisor, the bank’s ombudsman or a lawyer, if necessary.
  
  
• Keep track of all the steps you take and save all relevant documents. The documents could be useful if a dispute arises with businesses that claim you owe them money.

As a general rule, victims of identity theft have the right to take their own civil legal action against the thief to obtain compensation. However, in practice, it is often difficult to identify the thief, particularly when the identity theft occurred over the Internet.

That said, if the police catch the thief and he’s found guilty in a criminal trial, the judge can order him to compensate you for money you spent restoring your identity (for example, the cost of replacing your cards).