Identity Theft and Credit Canada 2025 — Identity theft affects over 25,000 Canadians annually according to the Canadian Anti-Fraud Centre. Fraudulent accounts can devastate your credit score within days of being opened.
Identity Theft and Your Credit in Canada 2025
Identity theft occurs when someone uses your personal information — your name, Social Insurance Number, date of birth, or financial account details — to commit fraud, most commonly by opening credit accounts in your name. The resulting fraudulent accounts and missed payments (since you don't know about them or make payments) can severely damage your credit score, sometimes before you even know it's happening.
Warning Signs of Identity Theft
You may be a victim of identity theft if you notice:
Unexplained hard inquiries on your Equifax or TransUnion report
Credit accounts you don't recognize appearing on your report
Bills or collection notices for accounts you never opened
Being denied credit despite believing you have a good score
Unexplained drops in your credit score
Mail from financial institutions you don't have accounts with
CRA notices about income you didn't earn (tax identity theft)
Immediate Steps If You're a Victim
File a police report: Contact your local police service. Get a copy of the report — you'll need the report number for every dispute you file.
Contact both credit bureaus:
Equifax Canada: 1-800-465-7166 or equifax.ca
TransUnion Canada: 1-800-663-9980 or transunion.ca
Request fraud alerts on both files and ask for free copies of your complete credit reports.
Review both reports line by line: Identify every account and inquiry you didn't initiate.
Contact each affected creditor's fraud department: Report the fraudulent account and initiate their fraud resolution process.
Report to the Canadian Anti-Fraud Centre: antifraudcentre.ca or 1-888-495-8501.
Consider contacting Service Canada: If your SIN was compromised, contact Service Canada about protecting it.
Disputing Fraudulent Accounts on Your Credit Report
File disputes with both Equifax and TransUnion for every fraudulent account and inquiry. Include:
Your police report number
A clear statement that you did not open the account and did not authorize the inquiry
Any supporting documentation (letters from creditors confirming fraud)
Bureaus must investigate and remove confirmed fraudulent items. This typically takes 30–45 days per dispute. With a police report, fraudulent items are usually removed — not just marked as disputed.
How Identity Theft Affects Your Credit Score
Fraudulent accounts harm your score in multiple ways:
Hard inquiries: Each fraudulent application creates a hard inquiry, potentially dropping your score by 5–10 points each
New accounts: Opening new accounts reduces your average account age
High utilization: If the thief maxes out fraudulent credit cards, your utilization ratio spikes
Missed payments: If the thief doesn't pay and collections are triggered, the damage is severe
In the worst cases, multiple fraudulent accounts with maxed balances and collections can drop a 750 score to below 500 within a few months.
How Long Does Credit Recovery Take After Identity Theft?
Once all fraudulent items are successfully disputed and removed (typically 2–6 months), your score should recover to near its pre-theft level within 1–3 months. The key is getting every fraudulent item removed — not just some of them. Any remaining fraudulent negative entries will continue to drag your score down.
Protecting Yourself Going Forward
Monitor both credit reports monthly with Borrowell (Equifax) and Credit Karma (TransUnion)
Place permanent fraud alerts on both Equifax and TransUnion files
Use strong, unique passwords for all financial accounts
Enable two-factor authentication on banking and email accounts
Shred mail containing personal or financial information
Be cautious about sharing your SIN — provide it only when legally required
Review your CRA My Account for unauthorized changes at canada.ca/my-cra-account
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A growing form of identity theft in Canada involves using someone's SIN to file a fraudulent tax return and collect a refund before the legitimate taxpayer files. Signs include unexpected CRA notices, discrepancies in your CRA My Account, or being told a return has already been filed when you haven't filed yet. Report tax identity theft to the CRA's security team immediately at 1-800-959-8281.
Key Resources
Canadian Anti-Fraud Centre: antifraudcentre.ca / 1-888-495-8501