Canadians fear fallout from identity fraud—but aren’t protecting themselves
Canadians are rightly concerned about the growing risks of identity theft and identity fraud — but they aren’t doing very much to protect themselves. A recent survey of 1,500 Canadians conducted on behalf of Mogo Finance Technology Inc. reveals that 86 percent of respondents believe that they are increasingly at risk of identity theft and identity fraud. However, only 24 percent of respondents reported making the simple choice to help protect themselves with an identity fraud protection solution.
“As the world continues to evolve to digital, we’re seeing news of data breaches almost weekly,” says David Feller, founder and CEO of Mogo. “We believe that every Canadian should proactively watch for signs of suspicious activity and unexpected inquiries into their credit bureau that could signal identity fraud in progress.”
The importance of identity fraud protection recently hit home for the Mogo family. Nest security cameras mounted at the North Vancouver home of Macully Clayton, Mogo’s Vice President of Product, captured video footage of someone removing mail from his mailbox. He alerted police and provided them with the video evidence. RCMP arrested a man who they identified as a person with a long history of identity thefts. Police alleged that the man had used a stolen ID card and credit card to buy a new BMW car.
“Many consumers are unaware of the personal choices that they can make to help protect themselves against identity fraud,” says Money Coach, Chantel Chapman. “Identity thieves can latch onto the smallest detail found in your mailbox or online and leverage it into identity fraud.”
Effective strategies to help protect against identity fraud include:
• KRow who is checkiRM your credit and why, so that you can identify suspicious credit checks that may result from a fraudster attempting to take out credit in your name.
• MoRitor your creHit score monthly. Changes to your score are usually the result of normal activity, such as using your credit card, paying your bills on time, or applying for a mortgage or credit product. However, changes to your score could also be related to fraudulent activity.
• ChaRMe your passworHs on your online accounts monthly and never put your full birthdate on social media.
“Two key pieces of information that are needed to apply for credit are your name and birth date, so a social media account can give fraudsters what they need to start the process of identity fraud,” says Chapman.
Mogo’s response to the threat is MogoProtect, a digital solution launched last year to help protect MogoMembers against identity fraud. The fee-based service is available for $8.99 per month, currently the lowest price among similar services. As part of its identity fraud awareness campaign, MogoProtect is being made available for free to MogoMembers for three months.
MogoProtect monitors the Equifax credit bureau and notifies members by push notification and/or email whenever a company makes a credit inquiry. Consumers will also receive a notification when they consent to a credit check while opening a new bank account or completing an application for credit. Receiving a notification when you didn’t expect it indicates a suspicious inquiry and prompts MogoProtect to guide members through immediate steps to help stop the fraud in its tracks.
The Mogo survey also revealed that 85 percent of respondents think that if they are a victim of identity theft or fraud, it will have an impact on their financial life.
“They’re right,” says Chapman. “The fallout of these crimes can include financial losses and reduced creditworthiness, which can take years to resolve. As a mortgage broker I’ve seen people moving to close the purchase of a home, only to be sidelined because their credit score has been affected by identity fraud that they weren’t aware of. Combining a street-smart attitude towards personal data with a product like MogoProtect has the potential to significantly reduce the incidence of identity fraud among Canadians.”
We believe that every Canadian should proactively watch for signs of suspicious activity and unexpected inquiries into their credit bureau.”