Identity theft involves stealing someone’s personal information with the intent to commit a crime, most often for financial gain. From drained bank accounts to poor credit ratings and even legal issues, identity theft can have profound implications. You can outsmart fraudsters by understanding the kinds of information they’re looking for and taking some simple yet effective steps to prevent identity theft.

What kind of information is targeted by thieves?
Identity thieves are looking for as much personal information as they can find, but according to the Canadian Anti-Fraud Centre, they’re especially interested in your:
 

• Full name
• Date of birth
• Social Insurance Number (SIN)
• Full address
• Mother’s maiden name
• Online usernames and passwords
• Driver’s licence number
• Personal identification numbers (PINs)
• Credit card information
• Bank account numbers
• Signature
• Passport number

How is identity theft used to commit insurance fraud?
Along with the rise in car theft across Canada, fraudsters steal identities to apply for auto loans, finance vehicles, and take out insurance policies. They may go one step further and use the victim’s personal information to open a new bank account and commit cheque fraud or money laundering.

Once the thief has purchased a new vehicle, they’ll ship it overseas or try to re-VIN it and sell it to an unsuspecting buyer. After selling the vehicle, the criminals report it to their insurer as stolen and use the funds from their insurance claim to finance other criminal activities.

This form of identity theft creates many victims—including the individual whose identity was used to take out the fraudulent loan and insurance policy, the buyer of the stolen vehicle, and the broader community. Simply put, more fraud equals more claim payouts, which equals higher insurance premiums for everyone.

How to avoid becoming a target of identity fraud
Here are a few easy ways you can protect your personal information from fraudsters:
 

1. Keep track of your bank accounts. Carefully review your credit card and bank statements monthly (or more often if you do online banking). If you see a transaction you don't recognize, contact your bank right away so they can investigate and prevent further charges to your card.
2. Cancel lost or unused cards. If you lose your debit or credit card or suspect it has been stolen, notify the bank or financial institution that issued your card as soon as possible. Most card issuers have a 24/7 customer service line for this purpose. They can track your recent transactions and determine if anything looks suspicious. They'll likely deactivate your card and mail you a new one with a different number. Consider cancelling cards you rarely use.
3. Shred private documents. Bank statements, credit card receipts, and anything else containing personal information or your signature should be shredded before they reach the side of the road.
4. Create strong passwords. It’s a good idea to create a password at least 12 characters or longer with a combination of uppercase and lowercase letters, numbers, and symbols to spell out a memorable phrase (e.g., 6MonkeysRLooking^) and update your passwords often. To take this a step further, avoid saving your usernames and passwords on your browser—saving them can make it easier for someone to access your online accounts if they get their hands on your devices.
5. Keep your phone on lockdown. Change your cell phone's passcode or unlock pattern often, or opt for a model with a fingerprint scanner or face ID technology. Enabling biometric authentication on your phone can make it less tempting to thieves, and keeping your phone locked can prevent your personal information from getting into the wrong hands.
6. Empty your mailbox (or go paperless). If your mailbox is accessible from outside your home, empty it daily to protect personal documents like bank statements and bills. Better yet, go paperless and receive mail containing personal information via email.
7. Don't overshare to strangers. Always think twice before providing your personal information over unsolicited phone calls, emails, or texts.

How to recognize potential identity theft scams
There are plenty of scams out there specifically designed to intimidate you into providing your personal information for fraudulent purposes. Here are a few common scams that should raise red flags if you encounter them on the phone:
 

• Someone who claims to work for the CRA and insists you owe the government money (or you could face jail time!).
• Someone who says they're opening a lawsuit against you, and you must call them back immediately.
• Someone who asks you to turn on your computer because they "discovered it has a virus" and they want to "help you remove it."
• A caller that's imitating someone you know and is asking you to provide personal information.

Generally, banks, government agencies, and other reputable organizations never call, email, or text to request personal information. If you receive a phone call asking for personal information, hang up and call the bank or agency to report it immediately. Check out these tips from the Government of Canada to protect yourself against common cybersecurity scams.

Unfortunately, sometimes identity theft happens despite your best efforts to prevent it — and that’s why many home, condo, and tenant insurance policies include coverage for some of the expenses that tend to follow identity theft. While coverage can vary, some insurance carriers offer additional optional coverage for identity theft and the costs incurred to restore your identity, such as correspondence, notarizing documents, lost income, and legal fees. Others also provide 24-hour hotlines for assistance from qualified professionals to support you through a cyber loss.

If you're a current OTIP policyholder, contact us at 1-888-494-0090 to review your existing home insurance policy and discuss additional identity theft coverage. If you’re not insured with OTIP and are shopping for home insurance, call us at 1-888-892-4935 to get a quote and receive a $20 gift card of your choice!