What is ‘Identity Theft’?

Identity Theft occurs when someone obtains key pieces of personal identifying information such as Social Insurance numbers and driver's licence numbers and uses them for personal gain.  The victim is left with a tainted reputation and the complicated task of restoring his or her good name.

The Internet has become a popular place for identity thieves to operate. Theft can occur in a variety of ways such as hackers accessing databases containing personal information; computer viruses acquiring personal information from your computer and sending out the details by email; phishers fraudulently acquiring sensitive information (such as usernames, passwords and credit card details), by masquerading as a trustworthy entity in a website; or an email scam that seeks to induce the release of sensitive information. Once the thieves have obtained the information they seek to use it for financial gain in a number of different ways: from a straightforward theft of money from a bank account to complex identity frauds involving loans etc.

Fraudulent emails

Fraudulent emails take a number of forms as follows:

• Lottery Scams –many cases have involved the advanced fee formula also favored by thousands of "Nigerian 419 scam" schemes. Victims typically are notified they have won, yet have to transfer fees or provide proof of their identity and/or details of their bank accounts in order to access the "winnings".
• Advance Fee Scams (“Nigerian 419 scam”) – Advance Fee Fraud is known internationally as "419" fraud after the section of the Nigerian penal code which addresses fraud schemes. The scam takes many forms (disbursement of money from wills; contract fraud; purchase of real estate etc.) but all involve the victim paying money in order to facilitate the completion of the ‘deal’. 
• Phishing Identity Theft – (see above).
• Employment Scams - Money mules are recruited by adverts for "Local Representative Needed ", "Shipping Manager" etc. in spam emails, adverts on genuine recruitment web sites and direct approaches. The mule is used to launder funds obtained as a result of phishing and Trojan scams. After being recruited by the fraudsters, mules receive funds into their accounts and they then withdraw the money and send it overseas using a wire transfer service, minus a commission payment. They offer you the chance to earn some easy money for a few hours work each week, usually just requiring that you have access to the Internet. An alternate version is the certified cheque fraud. An ‘employee is recruited and counterfeit 'certified cheques' paid directly into their bank account for amounts in excess of the salary, followed very quickly by instructions to 'send on the rest'. By the time the cheque has been found to be a fake, the employee has passed on the cash, usually by Western Union. If a fake cheque is paid into your account and you draw on it, you are responsible for returning the money to the bank.
• Auction Scams – The thief expresses an interest in an item but says that he lives abroad and wants to send a cheque for the cost of the item plus the cost of shipping. The victim clears the cheque in their account, and is then asked to contact the shipping agent to arrange payment of their fees, usually by a wire transfer service, which he does since the cheque has cleared. He may then be told that the buyer no longer wants the equipment and is asked to return the balance of the funds, again by a wire transfer service. Some time later that the victim’s bank is informed that the cheque was a forgery.

Protect yourself

Here are some steps you can take to protect yourself when using the Internet:

• Leaving your computer hooked up to a direct connection without firewall protection, either by software or hardware, is like leaving your house unlocked.  Once someone gains access to your computer, they could access any sensitive information that you have stored on the hard drive unless it has been securely encrypted.   You must install a firewall.  Many people believe that if the company they shop with or bank with is protected, their own PC is protected.   This is not correct.   You still need a firewall to keep hackers out when you are online.
• Install anti-spam and anti-virus software. Many anti-spam software programs also identify known viruses.   As many viruses are delivered by email, specifically spam, a good anti-spam program will help reduce your risk of inadvertently opening an email that contains such a threat.
• Keep your anti-virus, firewall and operating systems updated. Set your computer to update the operating system automatically for critical updates.  Set antivirus software to update daily, so that when it scans (either scheduled scan or real time scan), it is running with the most recent virus information.  

• You need both virus protection and firewall programs to be fully protected against hackers and intruders.
• Take care that you only download executable programs from reputable websites.
• Use a phishing filter in your Internet browser. If you're using Internet Explorer 7, all you have to do is turn the filter on. If you're using a browser without a built-in filter, look into downloading an anti-phishing filter from Windows Live or another reputable site.
• Beware of hidden file extensions. An innocuous-looking picture file, "seaview.jpg", might really be "seaview.jpg.exe" - an executable virus file. You can unhide extensions in Windows Explorer under Tools\Folder Options\View. Make sure to “Apply to all folders”.  
• If you are an online multi-gamer, do not publish your I.P. address on websites or newsgroups, unless you are very sure that you are fully protected.  
• Backup your system. You must protect yourself in the result of a successful virus attack by having a clean set of backup disks/tapes/CDs that will fully restore your system (without the virus) and the applications that you are using.  
• Turn off your computer when not in use. 
• Use common sense.  
• When in doubt, assume the unknown attachment is a virus.  
• Reconsider storing personal information in your computer. Transfer it to a CD and use the CD when you need the information.
• Don't follow a link sent in an e-mail. Even if your friend sends you a link, it could still be dangerous. Instead, type the link into a search engine like Google, Yahoo, or Windows Live to check out where it leads.
• Trust your instincts. It sounds simple, but some of the most effective scams are easy to avoid. When your common sense tells you a deal is too good to be true, listen to that inner voice.

Report Inappropriate Content or Communications

Remember there is a reporting link on every page of this website at the bottom left. If you encounter child pornography or any activity related to, inappropriate e-mailing or the sexual exploitation of children on or offline, you can report it.