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11 minute read Published on Aug 28, 2026 by BrokerLink Communications
Identity theft is something you’ve probably heard of from the movies. However, having your identity stolen is anything but entertaining. It can change your life forever and lead to huge losses in more ways than one.
Identity theft happens when someone uses your personal information without your permission, and it often leads to stolen money and a ruined credit history. Read on to learn about the common types of identity theft and what you can do if you suspect your identity has been stolen.
Identity theft occurs when someone uses your personal or financial information without your permission for financial or personal gain. To do so, they may use your Social Insurance Number (SIN), driver’s licence number, credit card information or online banking login details.
If it happens, you might start to notice charges you don’t recognize, a new credit card that was opened in your name or a call from a collection agency about a debt you never had. Then you may find yourself spending the next several months dealing with paperwork and phone calls while trying to prove you weren’t responsible for what happened.
In Canada, identity theft is often connected to data breaches, phishing scams, hacked accounts and stolen mail. According to the Canadian Anti-Fraud Centre, Canadians reported more than 108,000 fraud incidents and over $638 million in losses in 2024. The Centre also estimates that most cases are never reported, which means the true impact is likely much larger.
People sometimes mix these up, but they actually mean two different things. Here's what you should know:
Identity theft is the misuse of your personal information
Identity fraud refers to the financial or criminal activity that follows
If your identity is stolen, how it will affect you depends on what information was taken and which systems were affected. Some types involve bank or credit accounts, while others involve government records or legal identity. Here are the most common types of identity theft in Canada and the kinds of problems each one can cause:
Type of identity theft
What it usually looks like
What it can affect
Financial identity theft
Unauthorized credit card charges, emptied bank accounts or new credit cards opened without your knowledge
Bank accounts, credit cards and credit score
Synthetic identity theft
A real SIN combined with a fake name or birthdate to create a new credit profile
Credit history, future borrowing
Tax and benefits identity theft
Tax returns filed in your name or having government benefits redirected
CRA account, tax refunds, benefit payments
Child identity theft
Credit accounts opened using a child’s identity, which are often found years later
Child’s future credit record
Senior identity theft
Phone, email or mail scams targeting older adults
Savings, retirement income
Criminal identity theft
Someone gives your identity to the police during an arrest
Legal records, fines, warrants
Estate identity theft
Accounts or benefits opened in the name of someone who has died
Estate assets, executor workload
Identity theft usually starts with someone getting access to your personal information through digital accounts, physical documents or direct contact. In most cases, it comes from things like accounts with reused passwords, clicked links, stolen mail or information that you shared with someone you thought was trustworthy. Let's take a look:
When a company experiences a data breach, it often exposes usernames, passwords and account details for many or all of the customers who have used their website. If any of those people reuse the same password across multiple services, thieves can then test those credentials on banking, email and shopping accounts. This is often how account takeovers begin. According to the Canadian Centre for Cyber Security, more than 40% of Canadians say they reuse the same password across multiple accounts.
Once inside an email account, a thief may change the victim’s contact details to intercept security codes so that the victim won’t receive any alerts, and then they begin resetting passwords to other accounts. How to reduce your risk:
Unique passwords for every account
A password manager to help you keep track of your passwords
Multi-factor authentication to prevent your accounts from being hacked
Phishing messages are designed to look as real as they possibly can, often appearing as though they come from a bank, delivery service, service provider or government agency. The message usually asks the recipient to click a link, open an attachment or confirm personal information.
This works because most people are used to getting account notices, shipping updates or security alerts sent to their phone or email. When the message looks familiar, it’s easier to follow the instructions without stopping to double-check the source of the email or text message.
Phone-based scams or voice phishing rely on the same idea. The caller claims there is a problem that needs immediate attention, such as a locked account or suspicious activity. The pressure to act quickly leaves little time to verify who is actually calling.
In both cases, the goal is to keep the person from logging in on their own. By getting them to use a link, attachment or phone prompt instead of the official website or app, the thief can collect login details or personal information directly. How to reduce your risk:
Never click links or open attachments sent in unsolicited messages or emails
Access your accounts by typing the official website address yourself or using the company’s official app.
If someone asks for personal information over the phone, hang up and call the organization back using a verified phone number to confirm the request.
Malware is harmful software that installs itself on a device without permission in order to spy on the device or steal information. It can be installed through fake downloads, pop-up warnings or unofficial apps.
These infections often start with a prompt that looks legitimate and urgent, such as an anti-virus software update or security alert. When the message appears to come from the device itself, people are more likely to follow the instructions without checking the source.
Once installed, it can then record what is typed on the device, capture passwords or monitor activity quietly in the background without any obvious signs. How to reduce your risk:
Keep devices up to date
Install software only from trusted sources or official app stores
When you share information over public Wi-Fi networks or computers with shared access, it makes it easier for that information to be intercepted. This is one of the main reasons why you’ll hear warnings about never logging into banking or shopping accounts on unsecured public networks.
Shared or public computers create similar problems. Because public networks and shared devices are built for convenience instead of privacy, browsers may save passwords or autofill personal information automatically. On a shared device, the next user may be able to access that saved information without needing to bypass security. How to reduce your risk:
Avoid accessing sensitive accounts on public Wi-Fi networks or shared devices
In a SIM swap, a thief convinces a mobile carrier to transfer a phone number to a new device without the owner’s consent. Once that happens, they can receive security codes meant for the victim and use those to access the victim’s accounts.
This can then allow the thief to access the victim’s email, banking and social accounts when text messages are used as their two-factor setup for account verification or recovery. In many cases, the change may not be noticed until the victim’s accounts have already been accessed. How to reduce your risk:
Set a carrier personal identification number (PIN) or use port-out protection
Use app-based authentication instead of text messages where possible
While a lot of mail these days is paperless, many organizations still send things like bank or credit card statements, utility bills, credit offers and government notices through the mail. Since these types of mailed documents often contain partial identifiers and account details, they can sometimes be used to commit fraud.
Thieves may steal mail directly from your mailbox or submit fraudulent change-of-address requests to reroute it. And when financial statements or notices stop arriving in the mail, issues could go unnoticed for months unless you check your accounts regularly. How to reduce your risk:
Keep mail in a locked mailbox
Regularly check that your address details with the post office, banks and lenders are correct
When you forget your wallet at the mall and someone takes it, it can expose multiple pieces of your private information all at once. Your wallet often holds your credit cards, driver’s licence, health card and other types of identification. In some cases, people also feel the need to carry documents or cards that are rarely needed day to day and should be kept safely at home.
That’s one of the main reasons why the federal government phased out physical SIN cards: protect the personal information of Canadians. Provinces have taken a similar approach with birth certificates, which are now issued in larger formats and are not meant to be carried in a wallet, as they contain your full legal identity.
A valid ID, combined with a credit card number or address, can be enough for a thief to attempt to access your accounts, reset passwords or apply for credit in your name. Even if your credit and debit cards are cancelled quickly, your other personal details can still be reused later. How to reduce your risk:
Carry only the identification you actually need
Keep other sensitive documents, like your SIN letter, birth certificate or passport, at home
Identity theft doesn’t always involve hacking. Thieves can use things like:
ID cards you’ve left out in the open
Personal details you’ve shared online
Unshredded personal or financial documents they find in your recycling
When you post certain types of information publicly, like answers to a fun social media quiz, or throw out old papers with your information on them, thieves can sometimes combine them to eventually figure out your security questions or to create a false identity. How to reduce your risk:
Shred sensitive documents with personal and financial information on them
Limit how much personal information you share publicly
Identity theft rarely starts with a single obvious event. In fact, it usually appears through small changes to your account(s) that don’t match your normal activity or notices you receive in the mail that you can’t explain. Here's what you should keep an eye out for:
Charges you don’t remember making, withdrawals you didn’t approve or changes to settings like e-transfer details are often the first signs people notice. Thieves will sometimes start with small transactions to see whether the account is being watched.
Credit checks, loan applications or new accounts you don’t recognize can indicate that someone is using your personal information to apply for credit. However, these items may show up on your credit report before you receive any bills or notices, which is why it’s important to check your credit report at least once a year.
Some people first learn about a problem when a collection agency informs them through calls or letters about a debt they don’t recognize. This can happen when an account is opened using stolen personal information and then left unpaid.
When bank statements, credit card bills or other regular mail stop arriving, it can point to mail theft or a fraudulent change of address. If you start receiving mail that’s addressed to someone else at your home, it can also be a sign that your address is being used improperly.
Unexpected notices from the Canada Revenue Agency (CRA), changes to your benefit payments or sudden alerts about account access should always be reviewed carefully. These may indicate that there’s been unauthorized activity in your name involving tax or benefit accounts.
Emails or text messages about logins from unfamiliar devices, emails about password resets you didn’t request, or security warnings from your bank or email provider can suggest that someone else has accessed your accounts.
A sudden change in your credit score without a clear reason may be tied to new accounts, missed payments or credit inquiries that you never authorized.
If your identity has been stolen, what you’ll want to focus on is stopping any ongoing activity, protecting your accounts and creating a clear record of what happened. Here’s how to do that:
Start with your bank and credit card companies. Call them as soon as you notice a problem to:
Cancel any affected cards
Try to reverse unauthorized transactions
Make sure the accounts are secured
Place a security freeze with Equifax Canada and TransUnion Canada. This should prevent any new credit from being opened in your name without your approval. Then, request copies of your credit report from both credit reporting agencies and review them carefully. If you see any accounts, inquiries or activity you don’t recognize, dispute them with the credit bureau right away.
Next, you’ll want to file a police report and write down the report number. You’ll often need it when you’re dealing with banks, credit bureaus or government agencies.
It would also be a good idea to submit a report to the Canadian Anti-Fraud Centre, and make sure you keep a record of who you speak to, along with dates, reference numbers and any confirmation emails you receive.
If your Social Insurance Number or government accounts may be involved, you’ll need to contact the CRA to secure your account and review any recent activity. You should also contact Service Canada to find out what you can do about your exposed SIN number.
Follow the steps each organization gives you and set up spending or fraud alerts on your bank and credit accounts so you can see new activity right away. It’s also a good idea to keep an eye on your statements and credit reports for the next several months just to be on the safe side.
Identity theft insurance won’t stop fraud from happening. But what it can do is help with some of the costs that come up while you’re dealing with the fallout, such as:
Document replacement fees
Legal assistance and notary fees
Lost wages related to resolving the issue
Access to a support or recovery service
Credit monitoring costs
Identity theft insurance doesn’t replace the protections your bank already provides and it doesn’t usually repay stolen money directly. Those issues are generally handled through your financial institution.
Instead, this coverage is meant to help with recovery-related costs and support, and it’s typically added to a home, tenant or condo policy as an optional endorsement. Coverage details, limits and eligibility vary by insurer and by province. Speak with a local broker to find out if identity theft insurance is right for you.
Having your identity stolen can cost you a lot of money. That’s where identity theft insurance comes in. If you’re unsure whether this coverage makes sense for your situation, a BrokerLink advisor can walk you through your options. We can also explain the different types of scams and how to avoid them, and even offer tips on how you can protect yourself from identity theft.
If your credit card or driver’s licence ever goes missing, you should address the problem immediately. What are you waiting for? Contact BrokerLink to learn more about car insurance, home insurance and identity theft insurance today.