Identity theft strikes millions of Canadians each year, often leaving victims scrambling to repair the damage long after criminals have wreaked havoc on their finances and credit. Recognizing the warning signs early can save you thousands of dollars and countless hours of frustration.
Suspicious Activity on Your Credit Report
Your credit report serves as the first line of defense against identity theft. Check for accounts you didn't open, credit inquiries you didn't authorize, or personal information that appears incorrect. Even small discrepancies could signal trouble brewing beneath the surface.
Unexpected changes in your credit score might also indicate fraudulent activity. A sudden drop often means someone has opened new accounts or maxed out existing credit lines in your name.
Strange Financial Account Activity
Monitor your bank and credit card statements religiously. Look for unauthorized transactions, no matter how small. Thieves sometimes test stolen information with tiny purchases before making larger ones.
Missing bills or statements could mean someone has changed your address to hide their activities. If your regular mail suddenly stops arriving, contact your financial institutions immediately.
Mysterious Medical Bills and Insurance Claims
Medical identity theft has become increasingly common. You might receive bills for treatments you never received or find unfamiliar claims on your insurance statements. This type of fraud can be particularly dangerous because it may alter your medical records.
If your insurance company notifies you that you've reached your coverage limit when you haven't used your benefits, investigate immediately.
Tax Return Problems
The CRA might reject your tax return because someone else has already filed using your Social Security number. You could also receive unexpected tax documents from employers you've never worked for, indicating someone used your identity for employment.
What to Do If Your Identity Is Stolen
Time is critical when identity theft occurs.
- Start by contacting one of the three main credit reporting agencies to establish a fraud alert on your credit file. This precautionary measure forces lenders to take extra steps to confirm your identity before approving any new credit applications.
- Consider freezing your credit entirely. This prevents new accounts from being opened without your explicit permission, though you'll need to temporarily lift the freeze when applying for legitimate credit.
- Contact your financial institutions immediately to report suspicious activity. Close compromised accounts and open new ones with different numbers and passwords.
- File a report with the Federal Trade Commission at IdentityTheft.gov. This creates an official record and provides you with a recovery plan. Also, file a police report in your local jurisdiction.
- Document everything meticulously. Keep records of all communications, including dates, times, and the names of people you speak with. This documentation will prove invaluable as you work to restore your identity.
- Consider using one of credit monitoring services recommended by the Cybernews experts to help detect future suspicious activity quickly.
Stay Vigilant
Identity theft recovery can take months or even years, but swift action minimizes the damage. Regular monitoring of your accounts and credit reports remains your best protection against future incidents. Remember, staying alert today prevents bigger headaches tomorrow.
