The Fraud Freeze — What It Is and How to Place One on Your Credit in Canada
You got a letter telling you your personal information was exposed in a data breach. Or someone used your details to apply for credit you didn’t authorize. Or a scam you were involved in may have put your personal information into the wrong hands.
Now what?
One of the most effective steps you can take is placing a security alert or freeze on your credit file. Here’s what that means in plain terms, what it does and doesn’t protect you from, and how to actually do it in Canada.
What a Credit Freeze Actually Is
Your credit file is a record maintained by credit bureaus — companies that track your borrowing and repayment history. In Canada, the two main bureaus are Equifax Canada and TransUnion Canada. Lenders check your credit file when you apply for a loan, credit card, or mortgage.
A credit freeze (also called a security freeze) puts a lock on that file. When a freeze is in place, lenders who check your credit to approve new applications will typically be blocked or alerted — which means someone trying to open a credit card or take out a loan in your name may be turned down, even if they have your personal information.
Think of it as placing a lock on the door that fraudsters use to access credit in your name.
What a Credit Freeze Does and Doesn’t Do
It’s important to understand the scope.
What a freeze does: It helps prevent new credit accounts from being opened in your name without your involvement. This is most useful when someone has your Social Insurance Number, date of birth, and address — enough to impersonate you to a lender.
What a freeze doesn’t do: It does not affect your existing accounts. Your current credit cards, loans, and lines of credit continue to work normally. A freeze does not lower your credit score. It has no effect on your history — only on new applications.
What a freeze also doesn’t do: It does not protect against all types of fraud. It won’t stop someone from using your existing credit card number, draining a bank account, or committing tax fraud using your SIN. A freeze is one protective measure, not a complete shield.
How to Place One in Canada
In Canada, you contact the credit bureaus directly. Unlike in the United States, where federal law requires free credit freezes, the process in Canada varies by province and bureau. Some bureaus charge a small fee; others provide a free security alert option that accomplishes a similar goal.
Equifax Canada Phone: 1-800-465-7166 Website: equifax.ca You can request a fraud alert or security freeze by phone or through their online fraud centre. Equifax will ask you to confirm your identity before placing any alert.
TransUnion Canada Phone: 1-800-663-9980 Website: transunion.ca TransUnion offers a fraud alert option as well. Like Equifax, they will verify your identity before making any changes to your file.
When you call, explain that you’d like to place a fraud alert or security freeze due to a suspected identity-related concern. They will walk you through the options available in your province.
Contact both bureaus. Equifax and TransUnion maintain separate files on you — an alert at one does not automatically apply at the other.
The Difference Between a Fraud Alert and a Freeze
These terms are sometimes used interchangeably, but they’re not identical.
A fraud alert notifies lenders to take extra steps to verify identity before approving new credit in your name. It’s less restrictive than a freeze but still adds friction for anyone trying to open accounts fraudulently.
A security freeze is more restrictive — it prevents lenders from accessing your credit file at all for the purpose of approving new credit, unless you temporarily lift the freeze yourself.
Ask each bureau what options are available to you and what the associated process and cost looks like. A fraud alert is often a reasonable starting point and may be offered at no charge.
When to Consider This Step
If your personal information has been exposed — in a data breach, a scam, or through the loss of a document like your SIN card — placing a security alert or freeze on your credit file is a sensible, proactive step. You don’t need to wait until something goes wrong.
One Thing to Do
If your personal information has been exposed in a data breach or scam, contact both Equifax Canada (1-800-465-7166) and TransUnion Canada (1-800-663-9980) to ask about placing a security alert or freeze on your credit file. Starting those two calls is the most direct action you can take to protect yourself from new fraudulent credit being opened in your name.
Report fraud to the Canadian Anti-Fraud Centre at 1-888-495-8501 or antifraudcentre-centreantifraude.ca.