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Identity Theft

Identity Theft

Credit3 min readFebruary 11, 2026
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Identity theft is a growing threat for Canadian consumers, with direct consequences on credit files and the ability to obtain a mortgage. In Quebec, identity theft cases have increased significantly in recent years, amplified by the digitization of financial services and massive data breaches. A fraudster who obtains your personal information (name, date of birth, SIN, address) can open credit accounts in your name, accumulate debts, and cause considerable damage to your credit score. The impact on the credit file can include unknown accounts with unpaid balances, unauthorized hard inquiries, unknown addresses, and late payments on fraudulent accounts. In Quebec, the Act respecting the protection of personal information in the private sector and the Civil Code (articles 35 to 41) protect victims. Equifax and TransUnion offer fraud alerts and file freezes to limit damage. The Commission d'acces a l'information du Quebec (CAI) and the Canadian Anti-Fraud Centre are the reference organizations for reporting identity theft. AMF mortgage brokers must be alert to signs of identity theft in their clients' files.

Identity Theft: Impact on Your Credit and Your Mortgage

Identity theft has become one of the fastest-growing crimes in Canada. According to the Canadian Anti-Fraud Centre, financial losses related to identity fraud amount to hundreds of millions of dollars annually. For mortgage borrowers, the consequences can be devastating: fraudulent accounts that crash credit scores, loan refusals, and considerable delays for file correction. Understanding the protection mechanisms available is essential for every consumer in Quebec.

How Identity Theft Affects Your Credit File

A fraudster who has your personal information (full name, date of birth, Social Insurance Number, address) can open credit accounts without your knowledge. These fraudulent accounts then appear on your file at Equifax and TransUnion as if they were your own. Typical damage includes credit cards opened and maxed out without payment, personal loans taken out and not repaid, multiple hard inquiries you never authorized, and address changes that redirect your mail. The accumulation of these elements can drop a credit score from 750 to below 400 within months, making any mortgage application virtually impossible until the situation is resolved.

Reporting and Correction Procedures

  1. File a police report: Visit your local police station to file an official complaint. Obtain the file number, as Equifax, TransUnion, and financial institutions will require it. In Quebec, you can also report online through the Surete du Quebec website.
  2. Alert the credit agencies: Contact Equifax (1-800-465-7166) and TransUnion (1-800-663-9980) to place a fraud alert on your file. Simultaneously request a credit freeze to prevent any new account from being opened. Also request a complete copy of your file to identify all fraudulent items.
  3. Dispute fraudulent items: For each fraudulent account identified, submit a formal written dispute to the credit agency with your police report and a sworn declaration. The agency has 30 days to investigate and remove items confirmed as fraudulent.
  4. Contact the creditors: Notify each financial institution where the fraudster opened an account. Request closure of the fraudulent accounts and written confirmation that you are not responsible for the balances. Keep all correspondence.
  5. Report to the Canadian Anti-Fraud Centre: File a report with the Canadian Anti-Fraud Centre (1-888-495-8501 or online). This report feeds national anti-fraud databases and can help investigators identify fraud networks.

Prevention and Protection Measures

  • Check your credit file at least twice a year at Equifax and TransUnion. Early detection limits damage.
  • Never share your Social Insurance Number (SIN) unless required by law (employer, tax purposes, financial institutions). Question any SIN request.
  • Enable two-factor authentication on all your online financial accounts.
  • Securely destroy all documents containing personal information (cross-cut shredder).
  • Be wary of emails, texts, and calls requesting personal information, even if they appear to come from legitimate institutions.
  • Consider a credit monitoring service that alerts you in real time of any changes to your file.

Implications for Mortgage Applications

If you discover identity theft during a mortgage application process, immediately inform your AMF-certified mortgage broker. The broker can temporarily suspend the application while the credit file is being corrected, or redirect the application to a lender that accepts a letter of explanation accompanied by the police report. In some cases, a lender may proceed despite the fraudulent items, provided the broker supplies complete documentation demonstrating the disputed accounts are not yours. The LDPSF requires the broker to protect the client's interests, including guiding them through the identity theft resolution process.

Prevention remains the best strategy. By regularly checking your credit file and adopting rigorous security practices, you significantly reduce the risk that identity theft will compromise your home purchase plans in Quebec.

Frequently Asked Questions

How do I know if I am a victim of identity theft?
Warning signs include: unknown credit accounts on your file, unexplained credit refusals, calls from collection agencies for debts you do not recognize, statements for accounts you did not open, or a sudden unexplained drop in your credit score. Check your file regularly at Equifax and TransUnion.
What should I do immediately if I am a victim of identity theft?
Four urgent actions: (1) File a police report with your local police service. (2) Contact Equifax and TransUnion to place a fraud alert and credit freeze. (3) Report the incident to the Canadian Anti-Fraud Centre (1-888-495-8501). (4) Contact all affected financial institutions to report the fraudulent accounts.
Does a credit freeze prevent my mortgage application?
Yes, a credit freeze prevents any new creditor from accessing your file. If you are in the process of a mortgage application, you can temporarily lift the freeze to allow the lender to conduct their inquiry. Inform your AMF mortgage broker of the situation to coordinate the process.
How long does it take to correct my file after identity theft?
The process varies depending on the extent of the fraud. For each fraudulent account, the credit agency has 30 days to investigate after your dispute. In practice, full correction can take 3 to 12 months. Adding a victim's statement to your file is immédiate and helps future lenders understand the situation.
Are my rights different in Quebec compared to the rest of Canada?
Yes, Quebec offers enhanced protection. The Act respecting the protection of personal information in the private sector is stricter than the fédéral law (PIPEDA). The Civil Code (articles 35-41) protects the right to privacy. The Commission d'acces a l'information du Quebec (CAI) can investigate and impose penalties on offending organizations. Additionally, Law 25 (2022) strengthened notification obligations in case of data breaches.

Educational information only. This does not constitute financial advice under the Act Respecting the Distribution of Financial Products and Services (LDPSF). Consult an AMF-certified mortgage broker before making any financial decision.

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