Can't Get a Credit Freeze? 5 Alternatives to Try

In 2024, Canadians lost a staggering $638 million to fraud, with identity, service and investment fraud accounting for most of those losses, according to recent data from the Canadian Anti-Fraud Centre CAFC. That’s up about 10% from $578 million the year before.

Despite this worrisome trend, a powerful tool for blocking financial fraud — the credit freeze — remains unavailable to most Canadians.

A credit freeze (also called a credit lock) may help protect you from fraud by blocking lenders from accessing your credit score and history — a step that’s typically required to take out a loan or get a credit card — unless you give explicit permission.

Currently, only residents in Quebec can freeze their credit.

Why? Unlike the U.S., Canada’s credit reporting system is regulated at the provincial level.

This means each province must pass its own legislation to make credit freezing accessible to residents, explains Julie Kuzmic, senior compliance officer, consumer advocacy with Equifax Canada.

In 2023, Quebec passed the Credit Assessment Agents Act, which allows residents to freeze their credit reports. It’s the only province to have done so thus far.

5 workarounds to protect your credit

If you don’t live in Quebec, you still have options to protect your credit. Here are a few credit-protection workarounds to help you fight back against fraudsters.

1. Put a fraud alert on your credit reports.

Both Equifax and TransUnion offer free fraud and identity alerts you can proactively place on your credit file.

These alerts notify potential creditors that they should take extra precaution (such as contacting you directly) before approving new credit in your name. However, not all provinces require lenders and creditors to take this extra step — for some, it’s just encouraged.

A fraud or identity alert stays on your file for six years, unless you request to remove it sooner.

While not as secure as a freeze, fraud and identity alerts provide an additional layer of scrutiny and some protection, says Pamela Dodaro, chief product officer with TransUnion Canada.

“If you believe that you have been a victim of fraud, either confirmed or suspected fraud, you can put a notification on your credit,” Dodaro says, adding that the alert appears on your credit report immediately after you activate it.

2. Sign up for credit monitoring services.

Credit monitoring services keep tabs on your credit report and credit score, and notify you of changes or suspicious activity. Both credit bureaus in Canada offer paid monitoring services for around $30 per month, and some banks provide free monitoring to existing customers.

In addition to watching for suspicious activity on your accounts, a credit monitoring service can help you if you lose your wallet. Such a service might identify and contact creditors to close applicable accounts, or find subscriptions that need to be moved over, notes Kuzmic.

“When somebody is the victim of a data breach at a third-party organization, they’re often offered credit monitoring at one or both of the major bureaus in Canada,” Kuzmic says. “Definitely take advantage of that.”

3. Consider identity theft insurance.

If someone steals your identity, it can cost a lot of time and money to get your life back and recover financially.

Identity theft insurance can give you access to theft recovery and credit damage repair services. Additionally, identity theft insurance may provide up to $1 million in coverage to help you recover from fraud.

Identity theft insurance cost varies. Equifax offers coverage starting at $34.95 per month, for example, while banks and other insurers may charge fixed annual premiums.

You’ll typically get one-on-one help with contacting financial institutions, credit bureaus and authorities if you become a victim of identity theft. The coverage also reimburses for most legal expenses associated with defending yourself against criminal charges and financial protection if you lose your income.

🤓 Nerdy tip: Your existing home insurance plan might already include fraud and identity theft coverage. Check to see if it does and, if not, ask your insurer about adding a policy rider that covers these scenarios.

4. Review your credit report regularly.

Canadians get free access to their credit reports from both major bureaus. Check your report regularly for any errors, and look for new accounts or credit inquiries you didn’t authorize. If you see questionable activity, reach out to the creditor or institution immediately and place a fraud alert on your credit files.

Dodaro encourages people to review their credit on a weekly basis. “With the prevalence of fraudsters, it should be something that should be habitual. The fraudsters are very smart, so if you have been compromised, you want to know that as soon as possible,” she says.

5. Update your financial account passwords.

Finally, safeguard the logins and passwords for your financial accounts, as well as your social insurance number. Don’t store any passwords in your electronic devices, advises Dodaro, and change your passwords regularly to hard-to-guess passcodes.

Another tip: Avoid logging into your bank and credit card accounts using public Wifi. Doing so might expose sensitive financial and login information to anyone with access to the wifi network, Dodaro says.