SOCIAL INSURANCE CARDS TO BE PHASED OUT

Ottawa phasing out SIN cards to fight identify theft | News | National Post


Ottawa phasing out SIN cards to fight identify theft

Mark Kennedy, Postmedia News
May 15, 2012 – 6:59 PM ET

OTTAWA — The federal government is phasing out the plastic SIN card issued to millions of Canadians to save money and help avoid identify theft.

In future, Canadians who receive a new social insurance number will get a letter from the federal government identifying their SIN, but they will not receive a card. The plan was revealed by bureaucrats who testified at a Senate committee Tuesday.

The SIN is a nine-digit number that people need to work in Canada or to have access to government programs and benefits, such as Employment Insurance and the Canada Pension Plan. It is the key identification number used by government officials in tracking someone’s income and taxes owed.

In recent years, the government has warned Canadians that they risk being exposed to fraudulent activity in which someone else has access to their government benefits, tax refunds or bank credits if they lose their SIN card.

Unlike many other cards — such as credit cards and drivers licences — the white SIN card has no security features.

Putting an end to issuing new plastic cards will only produce $1.5-million in “modest savings,” said Peter Boyd, director general and departmental security officer in Human Resources and Skills Development Canada.

But he added there are “various reasons” for making the change, adding that while it’s important that people have a social insurance number, they don’t actually need a card.

“As everyone here knows, it is a simple plastic card. There are no security mechanisms on it, so relying on it as a mechanism for identifying clients is not prudent.”

Boyd said the government will phase out the process of issuing new cards — he did not provide a timeline — and that everyone who already has one will keep the same number.

“We do not recommend that people carry the plastic card with them,” said Boyd. “Given the role of the social insurance number as a file number for a variety of programs, we actually recommend people not carry that card with them. That is one of the concerns relating to identity theft.”

The SIN card is currently issued by Service Canada, which notes on its website that the number is confidential and the card should not be used as identification.

“Use your SIN with caution!” says the government website. “Do not give your number or show your card unless it is necessary.”

The government warns that if someone fraudulently uses your SIN to work illegally or obtain credit, the actual owner “may suffer hardship.”

“You could be requested to pay additional taxes for income you did not receive or you could have difficulty obtaining credit because someone may have ruined your credit rating.”