ID theft: Fastest growing form of consumer fraud in North America

In Canada alone, from 2002-2006, there were more than 54,000 identity theft victims reported to PhoneBusters - a Canadian Anti-Fraud Call Centre - totaling $77.4 million in losses. That's more than 10,000 victims per year.

Identity theft in Canada takes many forms: From organized crime rings using compromised credit cards and stolen bank debit cards to steal goods and services through to cunning impostors completely assuming your personal and financial identities to defraud banks and credit card companies while destroying your Canadian credit rating.

At its simplest, identity theft can start with a compromised credit card. It's almost impossible to stop. A worldwide network of online thieves use credit card generators to replicate real Canadian credit cards from Visa, MasterCard, American Express and Diners Club. I've had two different credit cards compromised recently, one at an online gambling website in the Caribbean, another at a Singapore travel agency. In both cases, I was alerted by credit card security. After I signed an affidavit stating the charges were not mine, the credit card companies ate the illegitimate bills.

There really isn't much you can do about this type of ID theft. But review your statements carefully, or better still set up email alerts to warn you about any unusual charges in case your credit card company doesn't catch it first.

Other times, you might have a credit card or bankcard double-skimmed by a dishonest employee or hidden skimming device. This situation can be tougher since these ID thieves steal your PIN to gain full access to your bank accounts. With the speed of a keystroke, hundreds, even thousands of dollars can disappear into overseas bank accounts never to be seen again. Anytime you use a bank ATM, take 30 seconds to examine the card slot to ensure it has not been hijacked.

Another popular method of stealing your bank information is called phishing. An apparently legitimate and urgent email arrives in your inbox from your Canadian bank or credit card company suggesting your immediately click on the link provided to ensure that your password is safe. Unfortunately just the opposite occurs if you click the weblink and type in your account and pin numbers. You have just given the thieves all the information they need to empty your bank accounts or use your credit cards. Never follow the instructions or links provided by these spamming emails. Always login into any account directly from your browser, not through an email account.

But these hi-tech methods of stealing your identity are not the only way thieves can cunningly morph into you. There are simple low-tech ways such as picking up your trash and recycling, stealing your mail, or telephoning you as a ‘security official' from your financial institution.

Simple tips for preventing these lo-tech methods: I always shred anything (and I mean anything) with my name and address on it; switch to online statements whenever possible to avoid private confidential information being mailed and vulnerable to ID thieves; and never give out any personal data such as social insurance numbers, PINs or credit card info over the phone ... ever!

Worse still, senior Canadians are frequently targeted for identity fraud because they are so trusting. One great organization is SeniorBusters, a group of seniors that volunteer with PhoneBusters by providing counsel and education to senior victims of identity thefts and frauds.

For an indepth expose of ID thieves operating out of Africa, Europe, Asia and Australia, NBC's Dateline chased an international gang of conmen and fraud artists from the United States through to England, with stops in Switzerland and England. Check it out!

The Canadian privacy commissioner offers these additional tips for protecting yourself from identity theft in Canada:

Tip sheet on i.D. theft protection for Canadians

• • Guard your information. Don't give your name, address or telephone number to a retailer or telemarketer unless you know why the information is being requested and how it will be used.
• • Shred documents such as bank statements, credit card statements, credit card receipts and pre-approved credit card applications to prevent information theft from your green or blue bins.
• • Protect your privacy online by installing the latest anti-spyware, anti-virus and firewall software on your computer. Shop only on secure sites and check for a lock symbol at bottom right of the window.
• • Stop spam by investing in a good spam filter and learn how to use it.
• • Apply a healthy dose of skepticism when an e-mail or phone caller warns that your bank account or credit card has been compromised.
• • Protect your Canadian Social Insurance Number. Ask questions when an organization asks for your number. An identity thief could use your number to apply for a credit card or bank account in your name.