1 Billion Individual records that were hacked in

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2 783 Major data breaches in 204 up 27% from Billion Individual records that were hacked in Fraud has changed The way we live and manage our finances today has changed radically from just a decade ago. We frequently use our credit and debit cards and we communicate and shop online, making us vulnerable to domestic and international schemes on a daily basis. Traditional crime such as theft (something of value is taken from you without your knowledge) or robbery (someone uses force, such as a knife or gun, and demands something of value from you) has been reduced in recent times in many cities across Canada, but cybercrime and identity theft is at an all-time high. Not so long ago it was difficult to steal personal information (e.g., stealing a purse, breaking into a house, overhearing a private conversation), but now identity thieves can operate at a distance from their victims, access databases containing large amounts of personal information and transmit that stolen information quickly and easily around the world. 4 working weeks The average time identity theft victims spend undoing the damage to their credit Identity theft can start with credit card fraud, however, it`s vastly more complicated and potentially devastating than credit card fraud. Identity theft can involve: Charging multiple purchases to your credit card both in Canada and internationally, Someone getting a cell phone in your name without your knowledge and then charging a big bill Title insurance theft (where your home is sold without your knowledge) Loans, mortgages or lines of credit approved in your name but funded to someone else. by Kelley Keehn 2

3 Victims are up 783 CPA Canada recently commissioned research to explore both the incidence of financial fraud and attitudes about fraud and identity theft. The survey found that a third of Canadians (32%) have been victims of some form of financial fraud. This finding underscores the need to be on high alert against the fraudsters. The keys to stopping scams are understanding the threat and knowing what to do to protect yourself and your family. 47% of those surveyed believe that someone has some personal information about them that they should not be in possession of. 7 in 0 Canadian s are very concerned about identity theft. Cairine Wilson Vice President, Corporate Citizenship CPA Canada According to the 205 CPA Canada fraud survey, the most common type of fraud reported by victims was credit card fraud, with an incident rate of 67% among fraud victims. The next most common form was debit card fraud reported by 29 percent of victims. The survey also found strong evidence that online fraud is on the rise in Canada. Sixteen percent of respondents said they had been victimized by online fraud, compared to six per cent in a similar fraud survey conducted by CPA Canada in

4 Complaints have increased 783 The Canadian Anti-Fraud Centre (CAFC) fraud statistics for 205 tell a frightening story. To the end of August, the CAFC reports that there were 33,06 complaints of mass marketing fraud of which 9,38 Canadians reported being victimized. Losses totaled more than $43.5- million. 4 Credit card protection in Canada is phenomenal! You go on a site the site looks real you place what you think is a legitimate order, for, by the way, a ridiculously low price. You find out it seems to be coming from China and two weeks later, when you actually get the product, you see it came from a low grade, illegal factory...you realize you ve been had. You have days to get your money back (with your credit card protection). If consumers were all aware of that, I don t see where the profit margin for the bad guys would be! Daniel Williams Senior Fraud Specialist Canadian Anti-Fraud Centre Online scams are also virulent. According to the CAFC, in the same period, 5,274 people reported being victimized by online financial fraud. The price tag for these cyber crimes was more than $25.8-million. These losses, as large as they are, only represent the tip of the iceberg because the majority of frauds go unreported. 4 4

5 Basic ways to protect against identity theft Your social insurance number (SIN) is such a key piece of your identity that Service Canada has stopped issuing SIN cards. Never give yours or your child s SIN to anyone other than for government or employment reporting (i.e when opening an RRSP, RESP, accepting, but not applying, for a new job). Two of the most important ways to protect yourself against identity theft are keeping your personal documents, such as your Social Insurance Number (SIN) confidential, and regularly monitoring your credit report to check for signs of identity theft. A person s SIN must remain protected. It should not be divulged to any group other than the government, your bank and your employer. Your SIN should also never be stored on your computer and all documents with that contain it should be kept in a secure location, preferably under lock and key. Other documents that must be protected include: bank statements, credit card statements, passports and other documents containing personal information such as wills, deeds and insurance-related information. Your credit report, which can obtained free of charge, is a particularly powerful tool to uncover and stop identity theft because it reveals who accesses your credit information. The report lists when credit, such as loans, credit cards or mortgages, is sought in your name. If a creditor is listed that you have never contacted, that s a huge red flag that your identity has been compromised. People who suspect that their identity has been compromised can go one step further and, for a small monthly fee, set up a fraud alert in their credit report. The alert legally requires any lender or credit granter to call you personally before any application for credit is approved. 5 5

6 How do you protect your family in the age of data breaches? 783 Now it s the law. The law is, breach notification is coming in Canada. Companies are obligated now to advise consumers when they ve lost your information. That s the law! What you can do is hold them accountable. Most companies that want to maintain that customer good-will, will offer them such things as credit monitoring protection, ID theft monitoring so that at least gives the consumer some comfort. John Russo Vice President, Chief Privacy Officer Equifax Canada How to get your credit report? You can request a credit report for free in Canada as often as you would like. You can do so in person (if a branch exists in your area), via mail, or online for a fee. Checking your own credit report does not affect your credit score. There are two credit reporting agencies in Canada: Equifax: TransUnion:

7 206 marks the 2 th anniversary of Fraud Prevention Month etfcm.com/ This year marks the 2th anniversary of the annual education and awareness campaign that began in 2004 by encouraging Canadians to recognize, reject and report fraud. Spearheaded by the Competition Bureau, Fraud Prevention Month is a unique effort that brings together 25 law enforcement agencies and public and private sector organizations to combat fraud. During the month of March, the Bureau and its partners in the Fraud Prevention Forum carry out numerous activities and host a variety of events to inform Canadians about the impact of fraud and how to protect themselves. The professional accountants are committed to the financial health of Canadians. As part of Financial Literacy Month, CPA Canada helps raise awareness of both the threat posed by fraud and the need for continued vigilance to spot and stop fraud before it happens. The National Strategy for Financial Literacy Count me in Canada, for example, has made helping people protect themselves against fraud one of its three overall goals. (Note: The other two are Manage money and debt wisely along with Plan and save for the future.) Consumers also have a responsibility to take an active role in their own protection. As I was handing over to my son his first debit card, I told him three things:. Don t share your PIN with anyone family, friends don t do it! 2. Change your PIN regularly to ensure or try to be one step ahead of the hackers. 3. Make your PIN easy to remember but difficult to guess. Commissioner Lucie Tedesco Financial Consumer Agency of Canada The Canadian Anti-Fraud Centre (CAFC) is in the vanguard of national effort and is rightly urging Canadians to always verify with whom they are dealing. Their advice is both simple and powerful: when approached by strangers for money, verify, verify, verify. These are just some of the many organizations that are involved in fighting fraud by providing resources to give Canadians the knowledge and confidence to push back against fraudsters. 7

8 Why actual or suspected fraud should always be reported The Canadian Anti-Fraud Centre is the central agency in Canada that collects information and criminal intelligence on fraud schemes. Its website notes that fraud is a global problem and the information you provide may be the key piece to a national or international investigation. Your data may also help the Centre identify a new or unique scam early on, and allow law enforcement, the media, businesses and other agencies to activate prevention and awareness measures. It s really important that people who are victims (whether it s identity theft or the different types of fraud) that we give those people some confidence, so that they can be confident victims. Because a lot of this that s happening is completely out of their control. Jennifer Fiddian-Green Forensic Partner Grant Thornton How to Contact the Canadian Anti-Fraud Center Reporting Fraud is essential to fighting scammers. People can report actual or suspected fraud to the Canadian Anti-Fraud Centre by visiting or calling toll free Remember to contact your local police department as well. 8

9 For more information or to arrange a media interview, contact: As the author of nine books including her last book published by CPA Canada, Protecting You and Your Money; A Guide To Avoiding Identity Theft and Fraud, Kelley would be pleased to speak to your media outlet or organization about the latest fraud protection strategies. Please contact her at: media@kelleykeehn.com or visit for more info. Kelley Keehn Fraud Round Table Host Personal Finance Educator Footnotes: Protecting You and Your Money; A Guide to Avoiding Identity Theft and Fraud, published by the Chartered Professional Accountants of Canada. 2 Identity Theft Resolution Centre 3 Gemalto 4 Financial Literacy Is Essential To Fighting Fraud, Huffington Post, November 4 th, 205 by Cairine Wilson, CPA Canada 5 CPA Canada Special thanks to ETF Capital Management for sponsoring this project; the Fraud Protection Industry Report, the micro website and videos of the round table discussion days refers to Visa MasterCard is 20 days 9