Privacy is having the ability to control how your personal information is collected and used. Canada’s banks understand the importance of protecting their customers’ personal information and take great effort to ensure that the information that they have about you remains safe and secure.

In the wrong hands, certain personal information could be used to carry out different financial crimes, ranging from debit and credit card fraud to email scams and real estate fraud, or it could be used to commit identity theft. All banks have privacy policies in place and dedicated privacy officers who ensure that their customers’ information is being protected.

The banking industry has long been a leader in privacy protection. In fact, many of the voluntary policies initially developed by the banks were adopted by the federal government and are now reflected in the Personal Information Protection and Electronic Documents Act (PIPEDA), which governs how organizations collect, disclose and provide access to personal information.

Guiding principles that banks follow when dealing with your personal data include:

• Ensuring individuals understand why information is being collected before it is collected
• Obtaining customers’ consent regarding the collection, use or disclosure of this information
• Using information only for the purposes for which it has been collected and for which consent was granted
• Providing customers with access to the information held about them and allowing customers to amend or correct their personal information

Working to protect yourself – online and off

Banks work hard to protect the information they have about you, and you should too. Both online and off, savvy criminals are waiting for you to let your guard down and unintentionally provide access to personal data that can be used to steal your money or commit financial fraud.

Today, the Internet lets you shop, bank, and even interact with friends around the world, all from the comfort of your own home. And because it is so easy and convenient, people often get lulled into a false sense of security. The unfortunate reality is that as Internet use grows, the number of criminals who use online means to commit crimes is also growing.

When using the Internet it is important to safeguard your personal information. Here are some steps you can take to ensure your personal information is secure:

• When online, know who you’re dealing with and be aware of potential security leaks. You wouldn’t give information to just anyone in the off-line world, apply the same common-sense discretion online.
• Change your passwords regularly, use hard-to-guess passwords (e.g. using a combination of letters and numbers), and never share your password with anyone – not even close family.
• Install and frequently update proven anti-virus software and also maintain a firewall to guard against unwanted access to your computer.
• Look for a company’s privacy policy or link to its privacy statement when you visit its website. Pay attention to what information the company gathers, how it’s used, and with whom it’s shared.
• Use caution if you receive e-mail from a business or person requesting personal information or directing you to websites that request your password, Social Insurance Number, or other highly sensitive information. If unsure of the legitimacy of a request, call the organization for verification.
• When using social networking sites, limit the information you share publicly, avoid posting your phone number, address or birth date and only accept friend requests from people you know.
• File sharing websites are popular with online criminals and should be avoided. Legitimate downloading sites have security measures in place to protect your personal data and are a much safer option.

Just shred it

The Internet isn’t the only place criminals can access unguarded personal information; they may also be able to find valuable data at the bottom of your driveway.

If you are like most Canadians, each week you probably throw away numerous bills, letters, financial statements and other documents containing personal information. A criminal can easily rummage through your garbage or recycling bin for an old income tax return or credit card bill and gather your personal information.

Luckily there is an easy way to protect yourself; shred all documents containing personal information before they are put into the recycling bin. Personal shredders are easy to use, inexpensive and widely available at office supply and department stores across the country. Shredding documents before you recycle them will go a long way to ensure you do not become a victim of identity theft or financial fraud.

Below is a list of documents that should be shredded before they go out to the curb:

• Financial statements from your bank or investment advisor
• Bills from phone companies, credit cards and cable and Internet providers
• Expired credit cards, insurance claims and old prescription forms
• Un-used credit card convenience cheques – Provided by your credit card issuer, these cheques work the same as a personal cheque, but the payment is drawn from your credit card account instead of your bank account. Banks take steps to prevent these cheques from being intercepted and used fraudulently. Cardholders are not responsible if fraud occurs but it can be an inconvenience so it’s still a good idea to shred all convenience cheques that you don’t use.

For more tips about privacy please visit the Privacy section of the Canadian Bankers Association website and for more information about Data Privacy Day 2009, visit www.intel.com/policy/dataprivacy.htm.

Do you have an idea for a future fraud prevention tip? Send us an e-mail with your idea to FraudPreventionTips@cba.ca.

Canada's banks take the issue of privacy, security and fraud prevention very seriously. They work hard to prevent their operations and customers from being used for any kind of financial crime and to raise awareness about the ways that customers can protect themselves.

As a consumer, you also have an important role to play in preventing fraud. On January 28, 2009 Canada, the United States and 27 European countries will observe the second annual Data Privacy Day. This month, in recognition of Data Privacy Day, we examine how banks work to safeguard your information and provide tips to help you protect your personal information online and at home.