Criminal Law
Identity Theft and Identity Fraud
Criminal Law
Identity Theft and Identity Fraud
The criminal offences of identity theft and identity fraud are often connected and committed together. The culprits who steal the identity are often likely to commit the crime of identity fraud as well. If not, they will then sell the identity to the criminals, who will use these stolen identities to facilitate fraudulent bank accounts or initiate illegal financial transactions online. Identity theft and identity fraud are both considered serious criminal offences under the Criminal Code of Canada. If you are ever wrongly accused of such offences, you will need the services of an experienced criminal defence lawyer to clear your name of the charges laid against you. In such a case, immediately reach out to our criminal defence team for legal assistance and guidance.
What constitutes the offence of identity theft in Canada?
The offence of identity theft falls under Section 402.2 (1) of the Criminal Code of Canada, which defines the offence as when a person obtains the identity information of another individual with the intention of using it for fraud, deceit, or any other indictable offence.
Trafficking of the stolen identity information
Section 402.2(2) of the Criminal Code defines the crime of trafficking of the stolen identity as selling, distributing, or transmitting the identity information of another person with the intention to commit fraud, deceit, or any other indictable offence.
What are the legal penalties for identity theft?
Identity theft is a hybrid offence without any mandatory minimum sentence. This leaves the matter to the Crown to look at the aggravating factors in the case and decide on pursuing either the indictable offence or the summary conviction option against the accused.
- Indictable offence: A maximum sentence of up to 5 years in prison.
- Summary conviction: A maximum sentence of up to two years less a day and a possible fine of up to $5,000.
What is the offence of identity fraud under the Criminal Code of Canada?
Under section 403(1) of the Criminal Code of Canada, the offence of identity fraud is defined as someone impersonating another person, who is either living or dead, in order to gain an advantage, access or gain ownership to a property, cause disadvantage to anyone, or evade arrest or escape from the reach of the law.
What are the legal penalties for identity fraud?
Identity fraud is set up as a hybrid offence under the Criminal Code. This means that the Crown reserves the right to weigh in on the circumstances of the case and choose either the indictable offence route leading to more severe penalties for the accused if convicted or the less severe option of summary conviction in case of minor offences. As such, there is no mandatory minimum sentence in the case of an identity fraud offence.
- Indictable offence: A maximum sentence of up to 10 years in prison.
- Summary conviction: A maximum sentence of up to two years less a day and a possible fine of up to $5,000.
How can our criminal defence lawyer help you in the case?
If you are wrongly accused of identity theft or identity fraud, it is important that you immediately assign an experienced criminal defence lawyer to represent you legally and follow their advice every step of the way. An experienced criminal lawyer will help you with the following.
Ensuring your rights throughout the process
Canadian law considers the accused to be innocent until proven guilty. This means that they are entitled to their Charter rights throughout and the right to a fair and just trial to challenge the levelled charges.
Preparing a strong defence
Your lawyer will study the evidence gathered by the prosecution against you and prepare a strong defence focusing on any weaknesses in the crown’s evidence.
Negotiating with the Crown
In most cases, it might be possible for your lawyer to negotiate with the Crown to get the charges reduced or dropped altogether, especially when the evidence is not strong.
Legal representation in court
When the case finally reaches the court, your lawyer will present your side of the argument, cross-examine the witnesses and experts submitted by the Crown, and fight for a final order favourable to you. If necessary, your lawyer will also represent you in higher courts in case of appeals.
We can Help
If you are dealing with any such serious criminal charges, do not face them alone. Connect with our criminal defence team today for help and legal representation in your case. At Nanda and Associate Lawyers, we have been successfully helping our clients fight such criminal charges until we obtain a favourable outcome for them in court.
Frequently Asked Questions
How do I clear my name of identity fraud?
First of all, it is vital that you immediately engage the services of a qualified criminal defence lawyer. If you have discovered that someone is using your identity to engage in transactions or open an account in your name, you must get in touch with the bank or that particular financial institution immediately to stop the transactions and close the fraudulent accounts. The quicker you act in this regard, the better. The banks might be able to recover some money if the culprits haven’t yet withdrawn it from the recipient accounts. You must cooperate fully with the authorities and ensure that you are following the advice of your lawyer in all matters. Connect with our criminal defence lawyer if you are looking for an experienced lawyer to guide you here.
Am I responsible for the debt incurred by someone using my stolen identity?
This will depend on various factors of the case, the amount, and the financial institutions involved. For example, credit card companies like American Express, Visa, Interac, and Mastercard have committed themselves to protecting their customers from any such illegal financial transactions. In such cases, the financial loss is likely to be covered by an insurance provider. Other financial institutions might not have the same policy in place. In such cases, the user is generally held liable for the maximum amount up to their transaction limit applicable to their account if they had failed to take the necessary precautions. Obviously, the total amount will be higher if the account has multiple lines of credit, an overdraft facility, or is linked to multiple other accounts. Also, it will be crucial to show that you took prompt action and informed the authorities as soon as you became aware of the illegal transaction. Get in touch with our criminal lawyer with the particular details of your case if you are facing a similar situation.
What is the difference between identity theft and identity fraud?
Both these crimes are often committed together. Identity theft, as the name implies, involves the theft of identity information, such as a social security number or credit card information. Such details might then be used to commit identity fraud to facilitate illegal financial transactions or open a fraudulent bank account in the victim’s name. Either of these offences comes with serious legal penalties, including prison sentences ranging from 5 to 10 years if convicted. Reach out to our criminal defence lawyer for legal counsel if such serious criminal charges are laid against you.
What is the most common identity theft?
Financial identity theft is by far the most common type of identity theft reported year after year. In most cases, an unauthorized person will steal the credit card details of the unsuspecting victim, and they will then use this information to transfer funds from the victim’s account to various intermediary accounts.
What to do if you are the victim of an identity theft?
Inform your bank or financial institution immediately
For example, if the identity information stolen was related to your bank account or credit card, then you must immediately contact the bank or the credit card company to prevent any unauthorized transactions or cancel your credit card altogether. The quicker you act in this regard, the better.
Contact law enforcement
You must also report the matter to the law enforcement authorities as soon as possible so that they can apprehend the culprits at the earliest.
Report the matter to financial regulatory bodies
Depending on the nature of the offence, you might have to report the matter to financial regulatory bodies, such as the anti-fraud centre, tax department, and revenue agency, so that they can take necessary action and cooperate with law enforcement wherever needed.
Secure your account
You will have to immediately change your account password and security questions, and in some cases, even close your account if you are sure that identity information related to that account has been compromised in some way.
Am I eligible for compensation for identity fraud?
Not always. Many factors will go into deciding whether the victim of the identity fraud will be compensated or not.
Insurance coverage for theft or fraud
If you are covered under an insurance policy that will reimburse you for any financial loss incurred in a theft, then you will receive compensation up to the extent covered under the policy. Sometimes, the financial institution you have an account with will provide such a policy for compensation for theft or fraud. Check the user agreement to confirm this.
Legal action for damages
If you have proof that the bank or the financial institution did not do proper due diligence and hence failed to red flag the fraudulent activity early on, you may pursue legal action against them for damages.
Prompt action by the victim
As soon as the victim of the financial fraud becomes aware of the act, they must report the matter immediately to the authorities and the financial institution concerned. This is because if acted quickly, it might be possible to retrieve some of the money fraudulently transferred. Any unexplained delays or inaction on your side might also lead to the rejection of your request for compensation.
In short: The Mandatory Reporting Act of 2011 has already made it...
In short: Regardless of the nature of the alleged crime, the Canadian...
In short: The Canadian Law expects law enforcement officials to respect the...