Sex trafficking in Canada is systematically linked to financial abuse and coercive debt, with research indicating that a quarter of all survivors are saddled with fraudulent debt. This was revealed in a study by the Canadian Centre to End Human Trafficking conducted in 2020. It found that traffickers often incurred expenses related to their illicit activities in the names of their victims.

Despite growing awareness of sex trafficking, the financial manipulation that accompanies it remains an under-recognized issue. Advocates are now pushing for changes to address this aspect. Julia Drydyk, the centre’s executive director, explains that using a victim’s identity for transactions makes it more challenging to track the money from an anti-money laundering perspective. Furthermore, the debts created are utilized as a tool to control, threaten, and coerce the victims.

Victim Services Toronto has reported that one in four sex trafficking survivors find themselves struggling with debt fraudulently created in their name by the trafficker. This further adds to the challenges they face when trying to rebuild their lives. Kaitlin Bick, an anti-human trafficking specialist with Victim Services Toronto, revealed that survivors typically have an average fraudulent debt of about $20,000, which has been known to rise to a staggering $100,000 in some instances.

Drydyk emphasizes that securing safe housing is critical for survivors looking to rebuild their lives. However, the fraudulent debts pose a significant barrier to achieving this. The process of tracking and resolving these debts can often exacerbate the trauma experienced by survivors.

To help alleviate this burden, Victim Services Toronto runs the Reclaim program. This nationwide initiative advocates for human trafficking survivors, working with creditors to eliminate the fraudulent debt. The organization has been successful in getting fraudulent debt removed from survivors’ credit reports in 90% of cases.

Despite these efforts, it’s important to note that only some provinces have strategies to address coercive debt. Drydyk adds that providing survivors with access to economic, social, and legal justice is key to addressing the root causes of trafficking, which she describes as a “low-risk and high-reward crime.”

Survivors of sex trafficking seeking assistance in dealing with fraudulent debt can reach out to Victim Services Toronto or The Canadian Human Trafficking Hotline for help.