Canada OKs Federal ID Theft Law

Federal officials in Canada hope a new law aimed at identity thieves will help bolster the nation’s anti-fraud efforts. The bill, Bill S-4, creates three new “core” Criminal Code offenses, each subject to a 5-year maximum prison stay, the Canadian Department of Justice explains in a recent statement. The new offenses are:

•  Obtaining and possessing identity information with the intent to use the information deceptively, dishonestly or fraudulently in the commission of a crime

•  Trafficking in identity information, an offense that targets those who transfer or sell information to another person with knowledge of, or recklessness as to, the possible criminal use of the information

•  Unlawfully possessing or trafficking in government-issued identity documents that contain information of another person.
 

The bill’s passage was met with plaudits from the financial industry. Among the organizations that have voiced support for the measure are the Canadian Bankers Associationn, Mastercard and the credit bureaus Equifax Canada and Transunion Canada.

What changes does the bill make to Canadian identity theft law? Interestingly, as the CBA’s statement points out, it allows law enforcement agencies to charge individuals for possession of personal identifying information before it is used for fraudulent purposes (previously, this was not the case). Additionally, it requires that an offender recompense a victim of identity theft or identity fraud for “costs associated with their efforts to rehabilitate their identity, e.g., the cost of replacement cards, documents and correcting their credit history,” according to the Canadian DOJ.

What’s the cost of identity theft in Canada? “The Canadian Council of Better Business Bureaus has estimated that identity theft may cost Canadian consumers, banks and credit card firms, stores and other businesses more than $2 billion annually,” says the Canadian DOJ. Statistics from PhoneBusters, the Canadian anti-fraud call center, put the number of victims reporting crimes at 9,000, to the tune of $8 million in losses.

However the numbers play out, identity theft is a crime that remains a problem and knows no borders. It’s good to see governments addressing it, a job that must continue as the crime evolves.