Identity Theft and Your Credit Score in Canada

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Identity theft can destroy your credit score overnight. Here is how to detect it, stop it, and rebuild your file.

Identity theft is one of the most damaging events that can happen to your Canadian credit file. Unlike a missed payment or high utilization — which you can address directly — identity theft involves fraudulent accounts and inquiries you didn't authorize. Here's how to detect it, stop it, and recover your credit score.

Signs of Identity Theft on Your Canadian Credit File

Accounts you don't recognize appearing on your Equifax or TransUnion report
Hard inquiries from lenders you never applied to
Bills or collection notices for debts you don't owe
Unexplained drops in your credit score
Calls from creditors or collection agencies for accounts you didn't open
Being denied credit for reasons that don't match your known credit history
Tax returns being rejected (identity theft also affects CRA)

Immediate Steps if You Suspect Identity Theft

Pull both credit reports immediately: Borrowell (Equifax) and Credit Karma (TransUnion). Identify every account and inquiry you don't recognize.
Place a fraud alert: Contact Equifax at 1-800-465-7166 and TransUnion at 1-800-663-9980 to place a fraud alert. This requires lenders to take extra verification steps before extending credit in your name.
File a police report: Essential for documenting the crime and necessary for many dispute processes.
Report to the Canadian Anti-Fraud Centre: 1-888-495-8501 or antifraudcentre.ca
Contact affected lenders: For every account you didn't open, contact the lender directly with your police report and request the fraudulent account be removed.
Dispute fraudulent items: File disputes with both Equifax and TransUnion for every fraudulent account and inquiry, providing your police report as documentation.

Identity Theft Recovery Estimator

Number of Fraudulent Accounts

Current Score (after identity theft)

Steps Taken So Far

Expected recovery time:

Credit Freeze vs. Fraud Alert

Feature	Fraud Alert	Credit Freeze
Effect	Requires extra verification before credit is extended	Blocks most lenders from accessing your file at all
Duration	6 years (Equifax); varies (TransUnion)	Until you lift it
Applies to both bureaus?	No — place separately at each	No — freeze separately at each
Can you still apply for credit?	Yes, with extra steps	You must temporarily lift the freeze first
Cost	Free	Free in Canada

How Identity Theft Affects Your Credit Score

Identity theft causes score damage through: new hard inquiries from unauthorized applications, new accounts with balances (fraudulent debt), potentially missed payments on fraudulent accounts as the thief doesn't pay them. In severe cases, a victim's score can drop 100-200 points from identity theft alone.

The good news: once fraudulent accounts are documented and disputed, they are typically removed within 30-90 days, and your score can recover quickly since the damage was not caused by your own behaviour.

Prevention: The best protection against credit identity theft is monitoring both your Equifax and TransUnion files monthly (free via Borrowell and Credit Karma). Early detection means less damage. If you see a hard inquiry you don't recognize, investigate immediately.

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