How to manage this silent danger
Identity theft is one of the most deceptive and damaging threats to both individuals and businesses. Unlike stolen physical items that are noticed immediately, digital identity theft often goes undetected for days, months, or even years. Victims usually realise something is wrong only after spotting unusual charges, sudden credit score drops, or receiving legal notices. This delay makes it harder to recover and increases the risk of further damage.
Identity attacks can be even more harmful to businesses. When personal information, customer data, or employee details are exposed, the fallout can include financial loss, reputational damage, legal action, and the challenge of regaining trust. These risks apply across sectors like healthcare, finance, and education—especially as more organisations use mobile devices, cloud storage, and online accounts. Every login, form, or misconfigured system is a potential entry point. Gaps in security controls or lack of awareness only increase that risk.
Solving this problem begins with awareness and a clear plan. Individuals and companies need to protect sensitive data, monitor for suspicious activity, and adopt stronger security practices. That includes using phishing-resistant multi-factor authentication, updating passwords, and working with cybersecurity experts who understand how threat actors gain unauthorized access. Whether you’re protecting financial data, intellectual property, or user accounts, thinking like the attacker helps you stay one step ahead.
What is Identity Theft?
Identity theft happens when someone uses your personal details or digital assets without permission. This can lead to new credit cards being opened, service accounts created, medical services billed to your name, and access to financial institutions using stolen credentials. The most commonly targeted data includes names, home or work addresses, dates of birth, login credentials, credit card numbers, social insurance numbers, driver’s licence details, and biometric data.
In Canada, identity theft continues to rise. The Canadian Anti-Fraud Centre (CAFC) reported that fraud cost Canadians about $638 million in 2024 alone. Since 2021, total reported losses have passed $2 billion. These numbers only reflect a small portion of actual cases—many identity threats go unreported or undetected. Incidents like the Desjardins breach, which exposed 9.7 million users, and Canada Revenue Agency scams involving phishing emails and fake telephone numbers show how easily attackers steal personal and financial data.
Laws like PIPEDA require businesses to report serious data breaches, but relying on reporting alone is not enough. Threat actors use phishing attacks, social engineering tactics, and credential stuffing to gain system access or bypass normal authentication. Some use forged authentication tickets such as golden or silver ticket attacks to impersonate legitimate users. Even high-profile executives are not immune. Identity theft affects specific individuals, public institutions, and private companies. Understanding how credential compromise works is a key step toward building stronger security.
Common types of identity theft include:
Financial Identity Theft
Medical Identity Theft
Child Identity Theft
Tax Identity Theft
Employment Identity Theft
Criminal Identity Theft
Theft of physical IDs
Home title theft
Biometric ID theft
Account Takeovers
How Thieves Gain Access to Your Data?
What is an identity-based attack? According to crowdstrike.com ‘Identity-based attacks are cyberattacks that target user credentials, such as usernames, passwords, and authentication tokens, to gain unauthorized access to systems or data.’
Essentially, these kinds of attacks include the technical steps needed to steal your identity. They exploit weaknesses in systems using techniques like credential surfing and session jacking. Then after compromising the credentials, the identity thieves can impersonate users and gain further access to a network.
One reason for the increase in these kinds of attacks is the rise in the use of AI in the hands of both sophisticated and juvenile fraudsters. In addition, as companies adapt to SaaS applications and cloud-based platforms get identity providers, it creates more channels of attacks for cybercriminals. To better understand the identity threat landscape and how it affects your business, let’s examine some common identity-based attacks and how they operate.
Common Methods of Attacks
Identity theft often begins with simple tricks. Attackers use social engineering and technical methods to gain unauthorized access to personal or financial data. From phishing emails to spoofed phone calls, their goal is to bypass normal authentication and steal sensitive information before a victim even notices something is wrong.
Phishing, Vishing and Smishing
These attacks aim to fool people into giving away personal information, such as login credentials or credit card numbers. The attacker often pretends to be a trusted company, using spoofed caller IDs, phishing emails, or fake websites that look nearly identical to legitimate ones. These sites may even copy real security logos or layouts to appear safe.
The method varies depending on the channel. Phishing involves emails, smishing uses text messages, and vishing relies on phone calls. Victims may be told that their service account has been compromised or that suspicious activity was found on their credit report. They’re then directed to click a link, visit a site, or call a fake number, where they’re asked to provide other sensitive data like their passwords or telephone number.
Fake Websites
Fake websites are fraudulent pages designed to mimic legitimate ones. Scammers create them to steal login credentials, credit card numbers, and other sensitive data. These sites often copy real brand names, layouts, and even URLs to trick users into thinking they’re authentic.
A common example is online shopping scams. Victims pay for items that never arrive, often using payment methods that offer no protection. In some cases, attackers also inject malware to gain unauthorized access to the user’s system, allowing them to steal financial data, personal information, or even control of the device. These fake websites may also be used to harvest telephone numbers, email addresses, or push phishing emails that lead to further credential compromise.
Dumpster Diving
Dumpster diving is a low-tech but effective way criminals collect sensitive data. It involves searching trash bins near homes, offices, and public areas for documents that reveal personal information. Items like bills, bank statements, and credit card offers often contain names, addresses, or account details that identity thieves can use.
Many people throw these papers away without shredding them, making it easy for attackers to gather information. Even recycling centres are common targets, especially when documents are left unprotected. Each piece of paper helps threat actors build a profile of the victim—where they live, work, bank, and shop.
Once enough data is collected, scammers can gain unauthorized access to financial accounts, open new credit lines, or take control of online accounts. This method may not involve phishing emails or malware, but the risk to your digital identity is just as serious.
Data Breaches
A data breach happens when sensitive information is exposed or stolen, either by accident or through a targeted attack. This can result from employee negligence, cyberattacks, or improper disposal of physical documents. In some cases, attackers gain system access using stolen credentials or bypass normal authentication.
According to Verizon’s 2022 Data Breach Investigations Report, 82% of breaches involved a human element. Once the breach occurs, threat actors sift through the compromised data to find personal information, login credentials, or financial records. This data is then used to carry out identity theft, open fraudulent accounts, or steal from existing ones.
Social Media Sharing
Sharing moments online has become second nature, whether it’s a recent vacation, job promotion, or family celebration. While social media helps us stay connected, it also creates opportunities for identity theft. Personal details, such as your full name, birthday, or even tagged locations, may seem harmless but can be used by threat actors to impersonate you or access your accounts.
These attackers may use password spraying or other forms of brute-force tactics to break into accounts by exploiting publicly available information. Once inside, compromised credentials may be reused across multiple platforms. Without an extra layer of protection like phishing-resistant MFA, it becomes easier for scammers to generate service tickets or launch golden ticket attacks, especially if behavior analytics aren’t in place to detect unusual login patterns.
Online sharing isn’t a risk by itself, but knowing what not to share is equally important in protecting your identity.
Shoulder Surfing
The average human checks their phone around 58 times per day, making shoulder surfing a simple but efficient method to gain access if done correctly. It involves secretly watching a person use their phone, laptop, tablet, etc, to get valuable information like passwords, PINs, email addresses, credit card information and more. Common locations for shoulder surfing include bus tops, airports, cafes, elevators and even the office.
The attacker takes advantage of the target’s lack of awareness of their environment to observe their device. If they are farther away, they could use cameras, mirrors and binoculars to observe from a distance. Once the attacker has taken note of your data, they can then use it to gain unauthorized access to accounts, initiate account takeovers, commit financial fraud and exploit your identity for a wide range of malicious activities, leaving your or your organization in ruins.
Impact on Victims
For individuals:
Financial ruin
Once the thief manages to steal your data they can use it to easily access your financial accounts. They could conduct credit card scams, make withdrawals from your account, open new accounts, open fraudulent loans, etc. In more extreme cases, the thieves could take out mortgages, file tax returns, and even apply for government benefits.
Health benefit loss
Your protected health information (PHI) is even more valuable to thieves than your financial data, as it is worth around $1000 on the dark web.
With this data, they can commit medical identity theft, use your health benefits, receive treatment under your name, or illegally acquire medication. This can quickly deplete your benefit allowance leaving you with hefty bills and potential premium increases.
Account Takeovers
When the attackers manage to gain access to your emails and passwords, they essentially gain access to your social media persona. This is particularly easy if you tend to use the same password across platforms.
Once they access your accounts, they could send spam messages with malicious links to people on your network who are more inclined to fall victim as well because they trust you. They might also search for sensitive information and files, which can then be used to blackmail you when they threaten to spread them.
For Businesses:
Reputational Damage
Trust can easily be broken. If customers become aware that your business has fallen victim to an identity theft attack, concerns regarding your security practices and data privacy. As a result, your overall reputation may suffer irreparable damage just from one incident. Constant vigilance and working with a reputable security company are, therefore, crucial.
Financial Losses
Attacks can result in financial losses for your business. This can include legal fees, compensation for affected customers, fines for non-compliance with regulations, and fees related to attempting to repair your organization’s reputation. Depending on the severity of all the fees, this could lead to potential business loss.
Regulatory and Legal Consequences
Depending on your location, laws require organizations to protect customer data. For example, PIPEDA, a Canadian privacy law, sets the ground rules for how private-sector organizations collect, use, and disclose personal information in the course of for-profit, commercial activities across Canada. In recent years, regulatory bodies have become stricter in enforcing compliance regarding data protection and privacy. Failure to comply can trigger internal investigations, fines, and even class-action lawsuits.
Operation Disruption
After you become aware that your business has fallen victim to this kind of attack, remediation efforts need to begin immediately, thus diverting time and resources. This includes investigations, notifications, system audits, and internal reviews. As a result, it often slows down regular operations and impacts productivity across departments.
Prevention and Mitigation
It is important to protect yourself and your organization, ensuring that your private data remains secure. It is therefore recommended to use a combination of mitigation and prevention strategies to create a layered system for detection, response, and impact reduction. With the right team guiding you, you will be better equipped to navigate this daunting task.
Prevention
Prevention aims to minimize exposure and reduce the likelihood that small mistakes will escalate into large-scale incidents. Common preventive tactics include:
While fingerprints and face recognition are becoming increasingly commonplace, it is still sometimes necessary to use a password, and in such instances, experts recommend using a strong password. The password should be simple enough for you to remember, however, it also should:
A minimum of eight characters or more
Contain numbers, symbols, capitalized and common letters
Not include any personal information
Furthermore, once the password is created, it should be stored securely, not shared with anyone, and unique for each account.
You could also use a password manager to better track and secure passwords across a number of accounts.
Anti-fraud software
Anti-fraud software is used to analyze online purchases and verify if they are fraudulent transactions. It is recommended to use this software to act as a shield for your phones, computers, and other mobile devices.
The software utilizes machine learning, AI, and data analytics to detect and prevent fraudulent activities. Unusual activity includes large purchases, sudden location changes, multiple attempts to access an account, multiple transactions in a short period, transactions at unusual times, etc. .
Implement strong identity verification
Implementing strong identity verification methods makes it difficult for attackers to access your information. This involves establishing a multi-layered approach to confirm a user’s identity using a combination or more of the following:
Something you know: password, PIN
Something you have: Security Token, mobile device
Something you are: Fingerprint, Iris scan, facial recognition
Implement encryption and Firewall Systems
Encryption and firewall systems work together to protect your data. Encryption secures data at rest and both on transit, so that even if thieves were able to intercept your data, it would be in a format unreadable to them, unless they access the description key.
In addition, Firewalls provide an additional layer of security by restricting access to parts of the network or system based on predetermined rules. It also filters malicious traffic, preventing unauthorized access.
Avoid oversharing online
Although social media is an excellent platform for sharing information, communicating, and staying connected, it also provides an easy avenue for attackers to commit fraud. Being mysterious on social networking platforms is a smart way to remain safe and protect yourself against identity thieves. Avoid oversharing, as a common tactic involves attackers selecting the “Forgot your password?” link on the account login page.
Afterward, they scour your social media to see common answers like your date of birth, phone numbers, vacation plans, mother’s middle name, high school class, etc. Hackers can collect these scraps of information and piece them together to guess passwords, answers to security questions, or even impersonate you.
You should also think twice before sharing personal information. Also, assume everything you post online is permanent, as even if you quickly delete your post, it could be screenshotted, saved, and reuploaded elsewhere. Lastly, be selective about who you invite into your social network. Thieves often make fake profiles to gather information about you.
Mitigation
Mitigation steps are where prevention fails. It helps mitigate the impact when a successful breach occurs. The goal is to quickly contain the threat, prevent more misuse of the compromised data, and begin the recovery process. A well-executed mitigation response plan should include:
An Incident Response Plans
Organizations need to have a clear, strategic, and reliable response plan implemented. This should include creating a team to manage the incident, outlining communication procedures, and defining the technical steps required to contain and assess the breach.
Further, each step of the incident response plan should include six phases: preparation, detection, containment, investigation, remediation, and recovery, regardless of the level of incident that occurred. A fast, coordinated response minimizes delays and confusion, ultimately saving resources and aiding in stress reduction.
Credit Monitoring and Fraud Alerts
Enrolling in credible credit monitoring services can help to quickly detect additional unauthorized activities on your personal and business accounts. Fraud alerts and freezes with credit bureaus like Equifax or TransUnion, alert you when changes are made, new accounts are created, addresses are updated, or other inquiries. As a result, fraud can quickly be detected and mitigation steps can be initiated.
Secure Compromised Accounts
If you receive an alert regarding login credentials, financial details, or security questions being compromised, it is important to act quickly. Immediately rest passwords, revoke unauthorized access to systems and apps, and enable Multi-factor authentication. The goal is to contain the breach, limit the attacker’s reach, and prevent further damage.
Reporting to Authorities
For businesses, once a breach has been identified, they are obligated to disclose this information. A report should be sent to the CAFC, and in some cases, to the local police. Businesses must comply with federal or provincial breach notification laws, including those outlined in PIPEDA.
Failing to report incidents can result in fines, loss of trust, reputational damages, and a prolonged recovery timeline.
Final Thoughts
Identity theft is not a fridge concern, it is a traumatic, persistent, and difficult experience that can severely damage individuals, businesses and individuals across Canada. Especially as attackers continue to refine their methods and incorporate AI into their tactics, the cost of not being cautious grows.
Whether it is financial, medical, home title, tax identity and child identity theft, among many others, it can leave devastating financial loss, trust and long-term reputational damage. Understanding how thieves steal your identity is crucial in combating this issue. From using tactics like exploiting weaknesses in security systems and human behavior, to low-tech methods like dumpster diving, keeping up to date is key to staying protected.
With the right team by your side, a proactive approach, preparation and planning, individuals and businesses can reduce their vulnerabilities and improve their ability to respond. If you are unsure where to start, we at Oppos are here to help and guide you so you can make your next steps with confidence. Do not hesitate to reach out.
