Guard yourself against identity theft
By Fiona Wagner • Bankrate.com

How does it happen?
Phonebusters lists five typical indicators that your identity has been stolen:

• A creditor informs you that a credit application was received with your name and address, but you never applied for it.
• You're told that you've been approved or denied by a creditor that you never applied to.
• You receive credit card statements or bills in your name that you didn't apply for.
• Credit card statements are missing from your mail, having been either stolen or redirected to another address.
• A collection agency informs you that you are in default for a loan established in your name, but you never opened the account.

Until recently, identity theft was the fastest growing consumer-directed crime in Canada. The Council of Better Business Bureaus estimates that identity fraud costs Canadian consumers $2.5 billion annually.

In 2003, identity fraud was named No. 2 on the list of top 10 scams and frauds for the second year in a row. Furthermore, credit bureau TransUnion reported that over a three-year period, the incidents of identity theft increased 500 percent, from 4,000 in 1999 to 24,000 in 2002.

However, there is a bright side. According to Elliott, the number of Canadian victims and the value of loss reported for 2004 is about the same as it was in 2003, when 14,599 people (mostly from Ontario) were victimized for $21.8 million. He credits the banks and credit unions for being more vigilant in screening false applications and increased public awareness.

What to do if you're a victim
If you suspect your identity has been compromised, there are four steps you should take:

1. Immediately report the fraudulent transactions to each company or credit card issuer affected.
2. Contact both of Canada's national credit reporting agencies, TransUnion Canada and Equifax Canada. Get copies of your credit report and ask whether a fraud alert should be placed on your file.
3. Report the incident to your local police.
4. Report the incident to Phonebusters National Call Centre.

Of course, the best course of action is prevention, and while you can't always avoid identity theft entirely, you can take steps to minimize your risk:

1. Sign all credit cards when you receive them. Don't loan them to anyone.
2. Cancel and destroy all cards you don't use. Keep a list of those you do.
3. Carry only the identification and cards you need. Don't carry your SIN or birth certificate.
4. Pay attention to your billing cycles and inform your creditors if your bills are late or missing.
5. Check each of your monthly credit card statements for discrepancies.
6. Shred or otherwise destroy discarded bank machine receipts, credit card or bank statements and utility bill statements. Never leave receipts at bank machines, in trash cans or at unattended gas pumps.
7. Don't disclose personal information over the phone, through the mail or over the Internet unless you initiated contact.
8. Don't keep a written record of your PIN or other passwords. Don't use common passwords such as your birthday or name.
9. Order a free copy of your credit report from both credit reporting agencies at least once a year.
10. If you use ATMs or point-of-sale terminals, shield your PIN. If shopping online, make sure the merchant uses a secure transaction system (the URL should begin with https://).
11. Guard your personal information, both at home and work. Lock your mailbox if possible. Protect your computer with a start-up password, use a personal firewall and install virus protection software.

Fiona Wagner is a writer in Georgetown, Ont.