Identity Theft, A New Kind of Crime with Crippling Consequences

Identity theft and fraud occur when someone obtains and uses another person's personal data for economic gain. Sometimes, years can go by before a victim discovers the crime.

"People are out there now stealing other people's identities and trying to take over their bank accounts, trying to set up loans or credit facilities or, in some cases, skimming people's credit or debit cards and creating new ones," says Paul McGrath, director of security, Canadian Bankers Association.

In 2001, Canadians - the highest users of debit cards in the world - made 1.3 billion automated banking machine transactions at more than 16,000 machines. And in 2002, Canadians possessed more than 49 million Visa and MasterCard credit cards.

It is estimated that between September 2001 and August 2002, Ontarians alone lost in excess of $4.5 million due to identity theft.

"Credit bureaus are receiving thousands of requests each month asking for assistance because someone has used their identity or because they suspect something is wrong," says McGrath.

Moreover, the trauma caused by identity theft, especially among seniors, is not restricted to financial hardship.

"It is not uncommon for identity theft victims to shut down emotionally and withdraw from family, friends and co-workers," writes Linda Foley, director of the San Diego-based Identity Theft Resource Center.