Act quickly - "While your first reaction may be panic, it's important to immediately contact all the financial institutions you deal with," says Chartered Accountant David Malamed, a partner with the forensic accounting practice of Grant Thornton LLP in Toronto. "Call the credit bureau and have a fraud alert put on your name. If anyone tries to open up accounts or get further credit under your name, you will be contacted."
Freeze, cancel and/or replace your credit cards, driver's licence, Social Insurance Number (SIN) and other important documents and accounts. Change your passwords and Personal Identification Numbers (PINs). "The faster you act, the more you will mitigate the impact on your financial resources and credit rating," says Chartered Accountant Peter Barr, a partner with Deloitte & Touche LLP in Kitchener. "If you notify the financial institutions involved in a timely way, you are also less likely to be held accountable for repayment."
It's a good idea to ask the financial institutions you deal with to confirm in writing that they have discharged you from fraudulent debt. Notify the police, but keep in mind that doing so won't restore your financial reputation. "Helping to catch thieves is for the greater good, but it won't fix your credit rating," explains Malamed.
Be prepared for the time and effort required - "Cancelling and replacing all your documents and notifying the organizations you deal with is a painful process," says Barr. Adds Malamed: "It can take 100 to 200 hours to deal with the fallout and may even take months or years."
Protect yourself in the future - "Don't carry all your credit cards with you, don't carry documents with your SIN on them and don't disclose your SIN," advises Malamed. "Shred documents and make sure you understand what policies, if any, the companies you deal with have regarding shredding documents or protecting your data in other ways. Don't give out personal information over the phone and cover the keypad when you enter your PIN."
Educate yourself about "phishing" and other e-mail scams. "Be careful what information you provide over the Internet," adds Barr. "Don't open e-mail you don't recognize and make sure anti-virus and other protective software are installed and up to date. If you shop online, use a separate credit card with a low credit limit."
Consult a Chartered Accountant - "CAs are specialists in risk management," says Barr. "They can advise you on how to lower your risk and how to minimize the damage from identity theft."
Brought to you by the Institute of Chartered Accountants of Ontario
- News Canada
Editors, this article is for use in Ontario only