As technology continues to advance, so does the complexity of financial fraud. Earlier this month, we wrote two articles (Unfortunately, when it comes to fraud, history does repeat itself; and Be suspicious of unsolicited emails) that highlight the various ways that fraudsters try to gain access to your personal information. It is also just as important to know how to monitor how your personal information is being used and to make sure everything is accurate and up to date.
Establishing a baseline
A few years ago, we wrote about when you go for your first physical with a doctor, they may talk about creating a baseline. Establishing an initial baseline is important as each patient is different. By determining your normal weight, cholesterol, blood pressure, etc., your doctor can assess your risk levels if you stray away from your baseline. To establish your baseline, blood is often drawn, and tests are conducted. The results of these tests are then reviewed by the doctor to see if they are within acceptable ranges. Every examination after that can be compared to your baseline. After a few physicals, your doctor will be better able to assess your overall health risks and advise accordingly if things are changing or if there are concerns.
When it comes to financial fraud risk, it is also possible to create a baseline. For many people, the monitoring of financial fraud risk is something you must do yourself. This article will provide some guidance on the first step in creating your own financial fraud baseline.
Credit reports
There are two nationwide credit reporting agencies in Canada: Equifax Canada Co. (“Equifax”) and Trans Union of Canada, Inc. (“TransUnion”). We recommend that individuals concerned about financial fraud request their credit reports from both Equifax and TransUnion. It is important to note that not all creditors report to both of these reporting agencies. While most creditors do report to both, you may find if you go through the exercise of requesting these free reports that you will find differences, including your credit score and the credit reports used by lenders. The credit scores used by specific lenders may also be customized.
Soft versus hard inquiry
Many people are reluctant to check their own credit score for fear that it will result in them lowering their score. This is not true. When you request your own credit score, this is called a “soft inquiry,” and it does not impact your credit score. A hard inquiry typically occurs when a lender requests details from Equifax or TransUnion in order to make a lending decision. This would be when you apply for a mortgage, loan, or credit card and would require your authorization. Having multiple hard inquiries in a short amount of time can have a negative impact on your credit rating. However, the rating agencies typically have specific rules with respect to applying at multiple institutions for a loan (i.e. mortgage on your home) so that each inquiry does not negatively impact your credit score – especially if the applications for credit are done within a 14 to 45 day period.
Multiple ways to obtain your credit reports
There are a few different ways that individuals can request a free copy of their credit report from Equifax and TransUnion. You may request online, by mail, in person, or over the phone. I’ve heard of situations where a client has tried to apply online and could not authenticate themselves. This likely means that something is not matching up – which provides even more reason for you to be persistent and obtain copies of your credit reports.
Equifax
The first step to obtaining your Equifax credit report is to visit their website at the following web address: https://www.consumer.equifax.ca/personal/. From this link, you will be able to apply for your credit report in various ways – online, by mail, in person, or over the phone.
Equifax – Request a copy online
After you open the web address above, you will be able to scroll towards the bottom of the page and click on the link to request your free credit report online. From there, you enter your personal information, create an account, and verify your identity. Information you will have to enter includes your name, address, social insurance number (optional), and date of birth. If you have lived at your current address for less than two years, you will also have to provide your previous street address. After entering your information, you can follow the steps to create your account and verify your identity with a one-time verification passcode, and your report will be generated.
Equifax – Apply by mail
On the Equifax web address above, if you scroll down, you will also see where you can request your free credit report by mail. An “Equifax Canada – Consumer Request for Free Credit Report” application in PDF format will appear. You will have to print off this form. The mail approach requires you to complete the necessary personal information, attach documentation to verify your identity, input your address, sign, date, and mail the completed package to:
Equifax Canada Co.
National Consumer Relations
Box 190, Station Jean-Talon
Montreal, Quebec
H1S 2Z2
Once Equifax receives your application, it will be sent to your home by Canada Post within five to ten business days.
Equifax – Apply in person
The in-person option only works for individuals who live near where an Equifax office is located. Equifax has three consumer care facilities located in Ontario, PEI, and Nova Scotia. For anyone living west of Ontario, the in-person option is not practical.
Equifax – Apply by phone
The customer care phone number for Equifax is 1 (800) 465-7166. In my opinion, this is the easiest and most practical way to request your credit report. In less than ten minutes I was able to answer the questions in the Interactive Voice Response system (IVR). IVR is an automated tool that gathers the required information to process your request through voice response or keypad selection. It is important to note that when requesting your free credit report by phone, you will be required to enter your social insurance number (SIN). If you do not wish to provide your SIN, you will need to apply online or by regular mail, as noted above. Once you complete the identity validation process by phone, your credit report will be sent to your home address via Canada Post within five to ten days.
TransUnion
There are several different ways that individuals can request a free copy of the consumer disclosure report from TransUnion. The first step I would encourage you to do is to go to the TransUnion website at: https://www.transunion.ca/product/consumer-disclosure.
TransUnion – Request a copy online
TransUnion gives the option of requesting your consumer disclosure report online. You can do this once a month which makes regular checking easy. Your computer will need to have Adobe Reader downloaded, which is a free program to download if you do not already have it. You will have to provide much of the details noted above. In my opinion, this is the easiest and most practical way to request your credit report if the information you key in is an exact match with their records.
TransUnion – Apply by mail
In order to receive a copy of your consumer disclosure report by mail, you have to go onto the TransUnion website and download the following application: The Credit Bureau request form. This application is in PDF format, and you will have to print it off. The mail approach requires you to complete the necessary personal information, attach documentation to verify your identity, input your address, sign, date, and mail the completed package to:
TransUnion
Consumer Relations Centre
P.O. Box 338, LCD1
Hamilton, Ontario
L8L 7W2
TransUnion – Apply in person
The in-person option only works for individuals that live near where a TransUnion office is located. TransUnion has three consumer care facilities located in Nova Scotia, Ontario, and PEI. For anyone living west of Ontario, the in-person option is not practical.
TransUnion – Apply by phone
The customer care phone number for TransUnion is 1 (800) 663-9980 (Prompt 1). Applying by phone is also an easy and practical way to request your credit report. In less than ten minutes you should be able to answer the questions in the IVR. Much like with Equifax, you will be required to enter your SIN. If you do not wish to provide your SIN, you will need to apply online or by regular mail, as noted above. Once you complete the identity validation process by phone, your credit report will be sent to your home address via Canada Post within five to ten days.
TransUnion – one final way to check your credit score
If you have a Scotiacard, you can log in to your online banking and check your credit score. On the right-hand side of the page, you will see “Additional Links”. Under this is a link to “See your credit score”. After clicking this, it will bring you to your credit score.
Peace of mind
We encourage you to request your Equifax and TransUnion credit reports. The information in these reports is free and can assist you in keeping an eye on your financial accounts and personal information. It only takes a few minutes to initially apply, and it doesn’t impact your credit rating. Obtaining your credit reports should be done at least every couple of years or more often if you suspect fraudulent activity is happening with your personal information. Monitoring your credit reports regularly can help you obtain peace of mind and is a proactive and prudent measure in protecting yourself from financial fraud.
Kevin Greenard CPA CA FMA CFP CIM is a Senior Wealth Advisor and Portfolio Manager with The Greenard Group at Scotia Wealth Management in Victoria. His column appears every week in the TC. Call 250.389.2138, email [email protected], or visit greenardgroup.com.
