Backgrounder

Identity Theft

Distinction between Identity Theft and Identity Fraud

While the term “identity theft” has no universal definition, it typically refers to the preliminary steps of collecting, possessing, and trafficking in identity information for the purpose of eventual use in crimes such as personation, fraud or misuse of debit card or credit card data. Identity theft can be contrasted with “identity fraud”, i.e., the subsequent actual deceptive use of the identity information of another person in connection with various crimes. Identity theft therefore takes place in advance of and in preparation for identity fraud, and constitutes the criminal use of information.

New Model of Crime

Canadian and U.S. law enforcement agencies have seen a growing trend in both countries towards greater use of identity theft as a means of furthering or facilitating other types of crime, from fraud to organized criminal activity to terrorism. 

Also, instead of one person committing an offence, there may be a complex operation involving a number of different people. No one person may be individually responsible for committing an offence, but each may contribute a small part to the larger criminal operation. New legislation on identity theft will give police and prosecutors additional tools to address such complex criminal activities.

Scale of the problem

One incident of identity fraud may have many victims, from the person whose identity is stolen and whose credit rating and reputation may be damaged, to the commercial and financial institutions that may cover losses resulting from use of stolen information, to the Canadian taxpayer, who may be harmed when false identities are used to obtain government documents or benefits.

It is difficult to determine an accurate number of victims of identity theft or identity fraud because they are not always reported, and when they are, they may be reported to a number of different authorities or organizations. However, a November 2006 Ipsos-Reid survey indicated that 73 per cent of Canadians are concerned about becoming victims of identity theft, and 28 per cent say they or someone they know has already been a victim of identity theft.

Useful Tips on Identity Theft for Canadians

Office of the Privacy Commissioner of Canada: http://www.privcom.gc.ca/keyIssues/ki-qc/mc-ki-idt_e.asp

Royal Canadian Mounted Police: http://www.rcmp-grc.gc.ca/scams/identity_theft_e.htm

PhoneBusters: http://www.phonebusters.com/english/recognizeit_identitythe.html

Canada 's Office of Consumer Affairs: http://consumer.ic.gc.ca/epic/site/oca-bc.nsf/en/h_ca02226e.html

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Department of Justice Canada
October 2007