A fraud alert is a protective tool that Canadian consumers can place on their credit reports when they believe they have been the victim of identity theft or financial fraud. Unlike most credit report entries that appear due to negative financial events, a fraud alert is something you choose to place on your own file. Here is how fraud alerts work in Canada and how long they last.
What Is a Fraud Alert?
A fraud alert is a notation on your credit report that instructs lenders to take additional steps to verify your identity before approving any new credit applications in your name. When a lender sees a fraud alert, they are required to contact you directly before opening a new account.
How Long Do Fraud Alerts Stay on Your Credit Report in Canada?
At Equifax Canada, a fraud alert typically remains on your report for 6 years, which aligns with the maximum reporting period for most derogatory credit items. At TransUnion Canada, fraud alerts are also maintained for an extended period, though you should confirm the exact duration when you place the alert.
Both bureaus allow you to renew or remove a fraud alert at any time by contacting them directly.
How to Place a Fraud Alert in Canada
Contact Equifax Canada at equifax.ca or by calling their consumer services line. Contact TransUnion Canada at transunion.ca. You will need to verify your identity and provide documentation supporting your identity theft claim, such as a police report. There is no fee for placing a fraud alert.
You must contact each bureau separately. A fraud alert placed with Equifax does not automatically appear on your TransUnion report, and vice versa.
Fraud Alert vs Credit Freeze
Canada does not currently have the same credit freeze options available in the United States. Canadian consumers can place a fraud alert, which is the most powerful tool available here. A fraud alert does not completely lock your credit file; it adds a verification requirement. This means legitimate lenders can still approve credit for you, but they must take the extra step of verifying your identity first.
What If Fraudulent Accounts Appear on Your Report?
If identity theft has resulted in fraudulent accounts being opened in your name, those accounts may appear on your credit report as collections, late payments, or other negative entries. A fraud alert alone does not remove these items. You need to dispute each fraudulent account individually with the credit bureaus, providing your police report and any other evidence.
This is where professional credit repair assistance can be very valuable. The dispute process for identity theft cases involves multiple bureaus, multiple creditors, and documentation requirements that can be overwhelming to manage alone.
FAQ
**How do I place a fraud alert in Canada?** Contact Equifax Canada and TransUnion Canada separately. Each has an online process and a phone process for placing fraud alerts.
**Does a fraud alert affect my credit score?** No. A fraud alert does not affect your credit score. It is a protective notation only.
**Can I remove a fraud alert if the threat is resolved?** Yes. Contact the bureau directly to request removal. You will need to verify your identity.
If you have been a victim of identity theft and have fraudulent accounts on your Canadian credit report, call (437) 755-6579 for a free consultation.