How to Prevent Identity Theft: Tips for Canadians

Fraud is big business. In 2025, Canadians lost $704 million to fraudulent activities, ranging from subscription traps to cryptocurrency scams. While having your money stolen is awful enough, having your identity stolen can have long-term repercussions as thieves open credit accounts, apply for government benefits, and rack up debt in your name.

In 2024, identity fraud was the most-reported type of fraud tracked by the Canadian Anti-Fraud Centre, with nearly 10,000 Canadians reporting that their personal information had fallen into the wrong hands.

When you also add in that scam artists and fraudsters are evolving the ways they steal personal data, understanding identity theft prevention, including how thieves access your information in the first place, is more important than ever.

What is identity theft?

Identity theft is when someone accesses your personal information — such as your name, Social Insurance Number (SIN), date of birth, or banking details — to use without your permission. Once your stolen information is used, typically to commit another crime, it then becomes identity fraud. Both identity theft and identity fraud are illegal.

Some of the most common forms of identity theft and fraud in Canada include:

• Credit card fraud: Using your card or applying for a new one in your name.

• New account fraud: Creating a new financial account in your name, such as opening a bank account or applying for a loan.

• Tax refund fraud: Filing a fake tax return in your name for the purposes of getting a refund deposited into the criminal’s account.

• Identity fraud: Posing as you to access government benefits or open new accounts, or hijacking your social media or email accounts.

How does identity theft happen?

Identity theft is alarmingly common, and the tactics fraudsters are using are becoming increasingly sophisticated. Knowing how to prevent identity theft starts with recognizing these sneaky tactics.

Here are a few Canadians should be aware of:

Phishing emails and text messages

Ever received a text supposedly from the Canada Revenue Agency saying you have a refund waiting to be authorized? Or an email from a client with an attached invoice that needs “your urgent attention”?

Fraudsters will impersonate anything they can, whether that’s the CRA, banks, insurance companies, or stores we all shop at. If you click on a link in the message or download the attachment, you could end up exposing your login credentials or installing malware onto your computer or phone.

Data breaches

A data breach is when a fraudster accesses a database of sensitive or confidential information. That information could include your home address, email, phone number, birth date, passwords, credit card info, and even your SIN.

For example, in October 2025, Canadian Tire’s e-commerce system was breached, exposing customers’ home addresses and dates of birth. Breaches can also be massive, such as when 16 billion passwords for Google, Facebook, Apple, and others were leaked in one of the biggest data breaches ever.   

Impersonation fraud

One of the most effective ways for fraudsters to trick you is by posing as a person or organization you trust, such as your bank or government agencies like the CRA or Service Canada. They could even impersonate someone you know personally, like a colleague, friend, or family member asking for money or personal information.

Sadly, the rise of AI has made this kind of fraud easier than ever to execute. Emails from trusted organizations can look exactly like they would if they were sent from the real source, and voice cloning scams could make a phone call from someone posing as your child or other family member sound eerily like it is them. 

Unsafe online purchases

Shopping online is convenient, but it’s admittedly not always safe. If you’re not careful, you could risk exposing your personal data to a scammer — especially if  you’re buying financial products like investment funds or life insurance.  

Some major red flags to look for is being directed to an unfamiliar third-party payment processor, the website doesn’t have “https” in its address (the “S” indicates an extra level of encryption), or being asked to submit your SIN or banking details through email or text.

Theft and mail fraud

Losing your wallet is a nightmare, but even your mail and documents left in your recycling bin could give thieves all the information they need to apply for a loan or credit card in your name, access your accounts, or sell your data on the dark web.

10 tips to prevent identity fraud

The good news is that identity theft prevention doesn’t have to be complicated, and there are easy ways to significantly reduce your risk.

1. Protect your Social Insurance Number (SIN)

Your SIN is the most valuable piece of personal information you have, so guard it very carefully. If your SIN were to fall into the wrong hands, it could be used it to steal your identity, potentially access your government benefits and bank credits, or to even work under your name — leaving you to pay taxes on money you never earned.

Only share your SIN when legally required, such as by your employer for payroll, the CRA or professional accountant for tax purposes, or a trusted financial institution for your investment accounts.

If you do have a physical SIN card, it’s a good idea to never carry it in your wallet. Instead, keep it in a secure place at home.

2. Use strong passwords

While it’s easy to re-use the same password for every account, this opens you up to risk. All a hacker needs is access to that one password and they could get into multiple accounts. Different passwords may be more work to remember, but that way, if one is compromised, your others stay safe.

Also avoid the temptation to use simple passwords — like Password123 or QWERTY. Ideally, your passwords should be a mix of uppercase letters, lowercase letters, numbers, and symbols. Aim for 12 or more characters.

Remembering your many passwords, especially complex ones, is daunting without some sort of storage system. You could write them down and store it in a safe place  or consider a password manager like 1Password or Bitwarden to generate strong passwords and store them securely.

3. Enable multi-factor authentication (MFA)

Multi-factor authentication (MFA) adds a second layer of security beyond your password. Whenever someone tries to access your account, the system will ask for a code. This could be a one-time code that’s sent to your phone or email, or you could sign up for Google Authenticator or Microsoft Authenticator, which generate time-sensitive codes via an app.

The Canadian Centre for Cyber Security highly recommends using MFA on all your sensitive accounts. This includes your banking, insurance, email, social media accounts, and any other platforms that use your personal data.

4. Monitor your credit report

Your credit report is a complete summary of your borrowing behaviour. In Canada, you can access your credit report for free each year from the two main credit bureaus, Equifax and TransUnion. Both bureaus update their reports monthly.  

Review your report every year and make sure you recognize all the activity on it. Look for accounts you didn’t open or inquiries you didn’t authorize — these can be red flags for identity fraud.

You can also check your credit score directly through your financial institution at no cost (RBC offers this service  through your online banking). While this won’t show you everything that’s in your full report, it’s a good snapshot of your credit health. Any unexpected drops in your credit score could be a sign of suspicious activity.

5. Take care using public WiFi

Free public WiFi is convenient, but convenience comes at a price. Public WiFi can be unsecured or use shared passwords, making it easier for malicious hackers to capture your information before it’s encrypted, even if you are using an “https” site.

Another way hackers could steal your data is through fake “free WiFi” hotspots mimicking the café or store you’re in. It may look legitimate, but you’ll have no way of knowing if nefarious data collection is going on behind the scenes.

For this reason, avoid logging into any banking, insurance, or other financial accounts on public WiFi networks. If you must use public WiFi, use a virtual private network (VPN) to encrypt your connection.

6.  Recognize and avoid phishing scams

Phishing scams are growing more common and becoming more sophisticated — so much so,  that an RBC survey found that 87 per cent of Canadians say it’s getting harder to tell whether an ad is real or a scam.

Always check the sender’s email address, especially if you’re being asked to provide information or to click or download something. Scam emails often use domains that look almost identical to the real thing. And remember that legitimate Canadian financial institutions like RBC will never ask for your password, SIN, or banking details via email.

When in doubt, contact the company directly. Go to their official website rather than clicking a link or call their customer service department and ask if the email is legitimate.

7.  Shop online safely   

When shopping online, make sure there’s an “https” and a lock icon in the website’s address bar. This indicates that the information sent through it is encrypted, making it more difficult for hackers to steal.

It’s also smart to navigate directly to a company’s official website rather than clicking links from unsolicited emails about sales and special offers, even if it’s from a brand you know.

Lastly, online retailers often offer to save your information for faster checkouts. While this can be convenient, no retailer is immune from data breaches. One way to protect your identity is to skip setting up an account and check out  as a guest. If an account is necessary, use a complex password.

8. Keep software and devices updated

Cyberthieves are always developing new tactics, so it’s important to make sure all your tech is up to date. Software updates for your computer, phone, and laptop often patch security vulnerabilities that have been spotted.

Make sure your operating system, browsers, antivirus software, and apps are always updated across all your devices.  

9. Review your financial accounts regularly

With credit and debit accepted almost everywhere, it’s easy to keep tapping without noticing how much has been charged or withdrawn. Regularly logging into your bank and banking and credit card accounts will not only protect your budget but will also ensure you spot any unauthorized transactions. You can also set up alerts through your financial institution’s app for real-time notifications.

Call your financial services provider immediately if you notice anything doesn’t seem right in your accounts or receive an alert for a transaction you don’t recognize.

10. Report suspicious activity right away

If you suspect your identity has been stolen, contact your financial institution right away so they can lock your accounts, and change all your passwords immediately. Next, notify your local police and the credit bureaus, Equifax and TransUnion. They’ll put a flag in your file indicating that you’ve been a victim of identity theft.

You should also report the incident to the Canadian Anti-Fraud Centre. You can contact them by phone at 1-888-495-8501 or make a report online.

If you think your SIN has been misused, notify the Canada Revenue Agency. If your birth certificate, driver’s licence, provincial health card, or other government documents have been stolen or are being used, notify the issuing provincial/territorial office.

It’s important to act quickly to minimize the financial damage to your accounts.

Extra protection for your credit cards

Identity theft is scary, but you can protect yourself and your finances by being proactive. Ensuring your passwords are strong, monitoring your accounts, and being cautious before engaging with suspicious emails or texts can go a long way to keeping your identity safe.

You can also get extra protection if you carry a credit card balance. BalanceProtector Max helps make sure your credit card balance doesn’t become a burden to you or your family, in the event of job loss, total disability, or if you pass away.  Learn more about how RBC Insurance can help protect your mortgage, loan, or credit card payments, or contact a licenced RBC advisor to answer your questions.