Identity Theft is on the Rise – How to Keep Yours Safe
Cybercrime surged during the pandemic, and identity theft was no exception. With COVID-19 creating chaos, cybercriminals exploited the situation, stealing over $880 million from consumers. This figure doesn’t even account for the vast amounts of government benefit fraud conducted using stolen personal data. And it doesn't end there.
The Rise in Identity Theft
“We also saw a surge in identity theft linked to social media accounts, with reported incidents jumping 1,044% in 2021,” shares Lisa Barron, WealthCo’s IT Lead. “These scams often involve using stolen credentials to post fake charities on social media, leveraging stolen data to instill trust and legitimacy. Additionally, medical records were targeted during the pandemic as fraudsters created fake vaccination status records. Medical identity theft remains a relatively unknown issue in Canada, with only 11% of the population aware that fraudsters can alter medical records.”
Why Has Identity Fraud Increased?
In our increasingly digital world, more personal information is stored online, and financial transactions are conducted over the internet. This shift has made identity theft more prevalent. The pandemic accelerated this trend, as businesses rapidly digitized to meet consumer needs, often without sufficient security measures in place.
“Many businesses were unprepared for the digital shift forced by COVID-19,” Barron explains. “Companies lacking a risk-based approach for security, a modern identity environment, and robust vulnerability management tools are at significant risk of financial losses.”
Data breaches have become more frequent, increasing by 68% from 2020 to 2021, with no signs of slowing down. Personal data can be purchased on the Dark Web for as little as $1.00 per record. As people use smartphones and other devices for financial transactions, it has become easier for criminals to intercept sensitive data. Hackers are continually refining their techniques, finding new ways to exploit system weaknesses.
Who is at Risk from Identity Fraud?
In short, everyone is at risk. The Canadian Anti-Fraud Centre reports the following statistics for 2022:
Over 68,000 reports of fraud since January 1st
Fraud affecting 43,476 victims so far this year
Over $360 million lost to fraud
While the stereotypical image of a cybercriminal is a shadowy figure over a computer, the reality is that over half of identity fraud victims know their attackers. It could be a family member, neighbor, or coworker.
“Baby Boomers are more exposed to government-based program scams like benefit fraud,” Barron notes. “Meanwhile, younger generations, like millennials, are more susceptible to identity theft through credit card fraud due to their frequent online shopping.”
Even the deceased aren’t immune. Over 800,000 incidents of identity theft involved the use of deceased individuals' identities to open credit cards.
How Can You Protect Yourself Against Identity Fraud?
The silver lining is that there are many ways to protect yourself. “The most important thing is to understand our vulnerabilities and take corrective actions to minimize them,” Barron advises. “Follow the three Ds: deter, detect, and defend.”
Deter
Safeguard your information: Never share personal details unless you are sure of the recipient's legitimacy. This includes your full name, date of birth, social insurance number, and bank account information. Verify organizations with the Better Business Bureau if in doubt.
Use strong passwords: Combine lower- and upper-case letters, special characters, and numbers, and change them often.
Install the latest operating systems: Keep your systems updated to fix vulnerabilities and activate anti-virus software.
Be mindful of app downloads: Be cautious of what you download on your computer, smartphone, and tablet.
Be social media savvy: Keep your profiles private.
Use encryption: Protect sensitive files and data.
Detect
Monitor your accounts: Regularly check financial and billing accounts, and your credit report for unusual activity. Consider signing up for a credit monitoring service to receive alerts for unauthorized use of your information.
Defend
Act quickly: If you notice suspicious activity, follow these steps:
Contact your local police and file a report.
Notify your bank/financial institution and credit card company.
Contact the national credit bureaus and place a fraud alert on your credit reports:
Equifax Canada: Toll free 1-800-465-7166
TransUnion Canada: Toll free 1-877-525-3823
Report identity theft and fraud to the Canadian Anti-Fraud Centre.
Stay Vigilant
October is Cybersecurity Awareness Month. Stay safe, stay aware, and stay vigilant.
Lisa Barron joined the WealthCo team in 2021 and has been instrumental in ensuring that we are adhering to the best possible cybersecurity and information management practices. Given WealthCo’s commitment to the adoption of new tools and technologies, Lisa’s exceptional problem-solving skills have been a tremendous asset. When Lisa’s not keeping us cybersafe, you’ll find her hiking and spending time with her two fuzzy family members (AKA her dogs) and her one unfuzzy family member (AKA her husband). She also spends her time giving back by helping our Calgary community with lost pets to bring them back home safely to their family.
The Integrated Advisory community consists of a network of progressive CPA firms, along with best-in-class professional advisors, service, and product specialists, who work together to deliver an elevated and holistic client experience. One that optimizes both their personal and professional lives with an integrated financial strategy designed to help clients reach their goals.