8 Steps to Prevent and Recover from IDENTITY THEFT

Updated:
August 28, 2019

Discovering that you’ve been a victim of identity theft can be scary, leaving you wondering what to do next and who you can rely on for help. Thankfully, there are steps that you can take to restore your credit and prevent identity theft from occurring again.

8 Steps to Prevent and Recover from IDENTITY THEFT
  1. Stay calm, and collect your thoughts. Take some time to make a list of all personal information that was lost or stolen. You’ll need to gather credit card numbers, bank account information and government identification. Since you’ll need to refer to this information within the months ahead, create a chart or spreadsheet where you can track the status of your progress and steps taken to protect yourself.
  2. Obtain a copy of your credit report from both major credit bureaus, and inform them that you’ve been a victim of identity theft. Request that they place a fraud warning on your credit file, which will instruct creditors to personally contact you before opening any new credit accounts in your name. The following are the names and phone numbers of the credit bureaus:
  3. Equifax Canada: 1-800-465-7166
  4. TransUnion Canada: 1-877-525-3823
  5. Review your credit reports, and look for accounts that you did not request, as well as creditors who’ve made unsolicited inquiries. Contact those creditors if you notice anything suspicious, and inform them of your identity theft. Instruct them to close the accounts that you did not open and to decline any new accounts that you did not request.
  6. Inform your local police. They will file a report—make sure you obtain a copy of it so you can show it to banks and creditors who sometimes need proof of the crime in order to erase thefts.
  7. Contact the Canadian Anti-fraud Centre (CAFC). The CAFC is the central agency in Canada that collects information about fraud and connects it to other cases—potentially preventing someone else from becoming a victim.
  8. Change all of your online passwords.
  9. Notify Canada Post, as well as utility and service providers if you suspect that your mail may have been redirected.
  10. Notify federal and provincial/territorial identity document issuing agencies. These include Passport Canada, Service Canada, and any other provincial and territorial identification card issuers.

FAQs

What is financial advising?

Financial advising involves providing guidance and advice to individuals, families, or businesses to help them make informed decisions about their financial matters. This can include various aspects such as investment planning, retirement planning, tax planning, estate planning, and more. Financial advisors analyze their clients' financial situations, goals, and risk tolerance to create customized strategies that align with their objectives.

Why is financial planning important?

Financial planning is crucial for several reasons:

Goal Achievement: It helps individuals set and achieve financial goals, whether they are short-term, such as buying a home, or long-term, like funding a comfortable retirement.

Risk Management: Financial planning addresses risks by considering insurance, emergency funds, and other protective measures.

Budgeting and Saving: It promotes responsible money management through budgeting and saving, fostering financial stability.

Wealth Building: Effective financial planning can lead to wealth accumulation and the creation of a secure financial future.

Can financial advisors help with debt?

Yes, financial advisors can help with debt management. They can assess your overall financial situation, create a budget, and develop strategies to pay down debt efficiently. They may also negotiate with creditors on your behalf, provide debt consolidation recommendations, and offer guidance on prioritizing and managing debt repayment.

What exactly does a financial advisor do?

The specific responsibilities of a financial advisor can vary, but generally, they:

  1. Conduct a thorough analysis of a client's financial situation, including income, expenses, assets, and liabilities.
  2. Develop personalized financial plans based on the client's goals, risk tolerance, and time horizon.
  3. Provide investment advice and portfolio management services.
  4. Offer guidance on retirement planning, estate planning, tax planning, and insurance.
  5. Monitor and adjust financial plans as needed based on changes in the client's life or market conditions.
  6. Educate clients on financial matters and empower them to make informed decisions.
What is the average fee for a financial advisor?

The fees charged by financial advisors can vary widely based on factors such as the advisor's experience, the services provided, and the region.

Common fee structures include:

Hourly Fees: Advisors charge an hourly rate for their services.
Flat or Fixed Fees: A set fee is charged for specific services or a comprehensive financial plan.
Asset-based Fees: Fees are a percentage of the assets under management (AUM).
Commission-based Fees: Advisors earn commissions on financial products they sell.
Combination of Fees: Advisors may use a combination of the above fee structures.
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It's important to discuss and clarify fee arrangements with a potential financial advisor before engaging in their services.