Identity theft cost Canadians at least $638 million in reported losses in 2024, and the Canadian Anti-Fraud Centre logged 9,683 identity fraud reports — the highest volume of any single fraud type that year. Here’s what you actually need to know.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Those numbers capture only what gets reported. Police-reported identity fraud hit a rate of 50 incidents per 100,000 population in 2024, up 2% from the year before, while the combined fraud rate — 500 per 100,000 — now sits 92% higher than it was a decade ago. The 2019 General Social Survey found that 2.5 million Canadians (7.8% of adults) had experienced fraud in the prior twelve months. If only one in twenty victims reports it, the true annual identity-related fraud incidents could easily exceed 100,000, and real national losses could push past $6 billion.
This isn’t a small problem that happens to other people. It’s a systemic one, and the way it works — and the real cost when it lands on you — is worth understanding before it happens rather than after.
Identity Theft vs Identity Fraud: What the Difference Means for You
Most people only hear about this after something goes wrong. A credit card they didn’t open, a benefit they didn’t apply for, a loan they never took out. By then the information has already been used, and the clock is running on who has to prove what. I’d rather know the difference before I need to act on it.
How Your Identity Actually Gets Stolen
There’s no single method that accounts for most cases. The 2024 data shows a mix of tactics, and the ones doing the stealing often combine several approaches in a single campaign.
Phishing, smishing, and vishing remain the most common entry points. A text that looks like it’s from your bank, an email claiming to be from the CRA, a phone call that spoofs a legitimate number. The goal is always the same: get you to hand over a piece of information — your SIN, a password, a credit card number — that can be used or sold. Cyber-enabled fraud accounted for 75% of losses in 2024, so most of this is happening through a screen.
Data breaches supply raw material at scale. A single breach at a major company can expose millions of records — names, addresses, dates of birth, and sometimes SINs — that criminals then use to commit identity fraud or sell on dark-web markets. The Canadian Centre for Cyber Security treats data breaches as a primary source of compromised identity information.
Mail theft and dumpster diving sound old-fashioned but still work. Pre-approved credit card offers, bank statements, tax documents — anything with enough personal detail to open an account can be intercepted. The same goes for information discarded without being shredded.
Social engineering exploits trust rather than technology. A fraudster calls pretending to be from your telecom provider, your bank’s fraud department, or a government agency and asks you to “verify” your information. The tone is urgent, the number may look real, and the request sounds reasonable. It’s not.
One thing worth noting: the most effective scams now span multiple types. A job offer can lead into a crypto-investment pitch. A romance scam can turn into a loan request. The line between them has blurred, and the RCMP has noted that frauds have become longer and more layered, making them harder to spot early.
The Real Cost: What Identity Theft Does to Your Finances and Your Life
The obvious cost is financial. The average loss per individual victim in 2024 was $15,028. But that number masks the range — some people lose a few hundred dollars to a cloned card, while others lose their life savings to an investment scam that started with a stolen identity and a convincing story. Investment fraud alone caused $351 million in losses in 2025, and spear phishing added over $67 million.
Less obvious is what happens to your credit file. Fraudsters open accounts in your name, run up balances, and disappear. The unpaid debts go to collections, which then show up on your credit report. When you try to get a mortgage, finance a car, or even rent an apartment, the lender sees a damaged credit history and says no. The RCMP has noted that identity fraud affects everything in a victim’s life — from their mortgage to trying to get a new car.
There’s also a personal cost that doesn’t show up in any statistic. The RCMP’s research on victim impact documents feelings of betrayal, anger, shame, and anxiety that can last for years. The 60+ age group recorded the highest victimization rate for identity fraud, with 1,684 elderly victims documented in 2024 alone. For someone who didn’t grow up with phishing or spoofed numbers, the scam can be devastating before they even realise what’s happening.
Where Most People Get It Wrong
Believing It Won’t Happen to You
Most people think identity theft is something that happens to someone who was careless. The numbers don’t support that. 91% of Canadians are concerned about data misuse, yet 2.5 million still experienced fraud in a single year. The breach isn’t always your fault — sometimes it’s the company holding your data that gets hacked. Acting like it won’t happen means no monitoring, no fraud alerts, and a slower response when it does.
Assuming a Credit Freeze Is Available in Canada
In the US, you can freeze your credit file so no new accounts can be opened in your name. Canada doesn’t have that. The closest option is a fraud alert, which tells lenders to take extra steps to verify your identity before extending credit. You have to place it separately with Equifax Canada and TransUnion Canada, and an initial alert lasts 90 days. An extended fraud alert can last longer, but it requires a police report. A lot of people find this out the hard way — after the fraud has already happened.
Not Reporting to the CAFC Because You Already Called the Police
The Canadian Anti-Fraud Centre is the central reporting hub for fraud in Canada. Even if you’ve filed a local police report, you should also report to the CAFC. They aggregate data across jurisdictions, identify patterns, and share intelligence that can lead to enforcement actions. The 2024 Toronto case where police recovered $225,000 from a romance-turned-crypto scam — it happened because the CAFC was involved alongside local police.
Thinking One Credit Bureau Is Enough
Equifax and TransUnion operate independently in Canada. A fraud alert placed with one does not automatically transfer to the other. You need to notify both, and you need to check your credit reports from both agencies after a fraud incident. Fraudulent accounts can show up on one and not the other, and missing one means you’re only half-protected.
→ Scroll right to see all columns
| Fraud Type | How It Works | Primary Target |
|---|---|---|
| Financial identity theft | Stolen info used to open credit cards, loans, or bank accounts | Credit file, bank balance |
| SIN fraud | Social Insurance Number used to file false tax returns or claim benefits | CRA, government benefits |
| Medical identity theft | Stolen health card or insurance used for medical services or prescriptions | Health records, insurance claims |
| Account takeover | Existing account accessed and rerouted through credential theft | Banking, email, social media |
| Synthetic identity fraud | Real and fake info combined to create a new identity entirely | Credit bureaus, lenders |
| Tax identity theft | Stolen SIN used to file a fraudulent return and collect a refund | Canada Revenue Agency |
What to Do If You Become a Victim
If you discover that someone has used your identity to open accounts or make transactions, the sequence matters. Each step builds on the one before it, and skipping a step can delay recovery by weeks or months.
- 1Report to the Canadian Anti-Fraud CentreFile a report online or by phone. The CAFC will log it, issue a reference number, and share the information with law enforcement agencies. This is the central record that other agencies will ask for.
- 2Contact the local policeFile a police report. You’ll need it for the extended fraud alert and for disputing fraudulent accounts with lenders. Some credit card companies and banks require a police report number before they’ll investigate.
- 3Place fraud alerts with both credit bureausContact Equifax Canada and TransUnion Canada separately. An initial fraud alert lasts 90 days. An extended alert, which requires a police report, can last longer. This tells lenders to verify your identity before opening new accounts.
- 4Dispute fraudulent accountsContact each lender where fraudulent accounts were opened. Provide the CAFC report number and your police report. Ask them to close the account and send written confirmation. Then dispute the items on your credit reports with both bureaus.
- 5Monitor your credit and accountsCheck your credit reports from both Equifax and TransUnion every few months for at least a year. Fraudsters sometimes wait before using stolen information again. Free credit report access is a legal right in Canada.
If you need legal guidance during the recovery process — for example, disputing a fraudulent charge that a lender refuses to reverse, or navigating a CRA reassessment after tax identity theft — a legal consultation service can help clarify your options without a full retainer.
Frequently Asked Questions
What should I do the first moment I suspect identity theft in Canada? ▾
Can I freeze my credit in Canada like in the United States? ▾
Will identity theft affect my credit score permanently? ▾
Do I have to report identity theft to both Equifax and TransUnion? ▾
Should I report to the CAFC even if I already called the police? ▾
Can I get a new Social Insurance Number if mine has been stolen? ▾
Staying Ahead of the Threat
The numbers keep climbing — $165 million in 2020, $638 million in 2024, $704 million in 2025 — and every indicator suggests this trend will continue. The federal government launched a National Anti-Fraud Strategy consultation in March 2026, but structural solutions take time. In the meantime, the gap between who’s affected and who reports it remains the single biggest blind spot. An RBC poll in March 2026 found that 83% of Canadian adults now treat every unexpected text, email, or call as potential fraud. That’s probably the right starting point.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Unlock CA Wealth: The Secret Investing Habits of Millionaires.
Sources and Further Reading
Tax-efficient investments in Canada — a practical guide to structuring your savings and investments to minimise tax exposure, relevant after any financial disruption.
Is Universal Basic Income the Answer to Canada’s Wealth Gap? — explores how systemic financial vulnerabilities affect Canadians, including those hit by identity fraud.
Discreet Investigations (2025). Identity Theft Statistics Canada 2025. 🔗
The Global Statistics (2026). Identity Theft Statistics in Canada 2026. 🔗
RCMP Gazette (2025). The Cost of Fraud Exceeds Financial Loss, Victims Say. 🔗
Credit Resources Canada (2025). Identity Theft and Credit Fraud in Canada: Prevention and Recovery Guide. 🔗
The Global Statistics (2026). Scam and Fraud Statistics in Canada 2026. 🔗
