Canada is becoming a global trendsetter in mortgage fraud, a crime and risk management expert told an anti-fraud conference that opened in Toronto on Tuesday.

Chris Mathers, told the conference that real estate fraud is the newest form of identity theft.

"[Mortgage fraud] is an absolute epidemic, a huge problem in the developed countries, especially here in Canada," said Chris Mathers, a specialist speaking at the International Fraud Investigators Conference in Toronto. "And I don't see it changing anytime soon."

Mathers said while credit card and mass marketing scams are still a large concern, the potential for real estate fraud is enormous. A bill before the Ontario legislature would raise the maximum penalty for real estate fraud from $1,000 to $50,000.

Earlier in the day, Ontario's information and privacy commissioner warned holiday shoppers to be particularly vigilant this holiday shopping season.

"You have to guard your personal information in all forms at all places," Ann Cavoukian told CBC.

"This extends from keeping your wallet and purse protected to not carrying very sensitive documents like your social insurance number … you don't need to carry that around with you. That's the golden key that will unlock so many databases and get bad guys in to compile a personal profile and access your information."

A separate web card

Cavoukian, who will also be speaking at the conference, said consumers should apply for a separate credit card to be used exclusively for online purchases. This card should be restricted with the lowest credit limit possible.

"You can separate your online purchase from your regular credit card where you may have pre-authorized payments and a lot of activity, and if anything happens online and your card is compromised, you can very easily separate the harm from that from your regular life," she said.

The privacy commissioner also said consumers should check websites for a secure padlock symbol, shred private documents, and make sure their computers and personal data assistants, such as BlackBerries, are password protected. Identity theft, she said, has reached surprising new heights.

"There's a whole group of people they're called dumpster divers, that's what they do for a living," she said. "They go through people's garbage and especially they go through the big garbage bins of businesses like car rental agencies where you can imagine the forms you fill out are full of sensitive information. If they just throw it out, these guys have got gold."

Cavoukian said whenever she fills out a form, she asks the company to shred the information once they are finished with the document.

The privacy commissioner also called on businesses to tighten their security restrictions, noting that many businesses allow large numbers of their employees to have open access to sensitive information.

"A rogue employee has access to identifiable information with your name and address and other information associated with you and they sell it.  They sell it to the highest bidder," she said.

"Organized crime is getting into identity theft big-time because it's so easy to do."