Identity theft is a crime that can wreak havoc on your finances and do severe damage to your credit score. Data breaches, lost wallets, and even mail theft can put your personal information into the hands of criminals. With this personal information, these criminals can then apply for new credit cards, loans, and other accounts in your name.
To help address the problem of identity theft, credit reporting agencies offer individuals in vulnerable positions credit monitoring services. So, is it worth signing up for such services? If so, what’s the best identity theft protection in Canada?
Key Points
- Credit monitoring can provide a way to quickly spot any suspicious activity in your credit reports and accounts that may point to possible identity theft.
- Several credit monitoring services are available, which often require a paid monthly subscription fee.
- You can also monitor your credit on your own by pulling your credit report often and scanning your credit card and bank account transactions.
- Credit monitoring may not prevent identity theft, but it can help you spot suspicious activity early to minimize the impact.
What Is Credit Monitoring?
Credit monitoring is a paid service that helps you keep track of changes to your credit report. Whenever a change occurs, your credit monitoring service provider will notify you right away.
For instance, if a lender conducts an inquiry on your credit report to process a loan application, you’ll receive an email or mobile notification alerting you of the action. Credit monitoring services track a wide variety of other changes that impact your credit report as well, including late payments, credit score changes, new accounts, and updates to your personal information.
Does Credit Monitoring Protect You From Identity Theft?
Yes and no. Credit monitoring is a reactive solution rather than a proactive solution to identity theft.
There aren’t any safeguards in place that actually prevent unscrupulous individuals from taking advantage of stolen information. The monitoring system in place only alerts you to changes that appear on your credit report – it’s up to you to take action to remedy any unauthorized charges or credit checks.
Credit monitoring services can lull you into a false sense of security, convincing you that your personal information is safe when it may still be vulnerable. However, it does serve a useful function by sending you fraud alerts, allowing you to take swift action to rectify any fraudulent activity.
Best Identity Theft Protection In Canada
Consider one of the following services to monitor your credit report for suspicious activity:
| Service | Monthly Price | Features |
| TransUnion | $24.95 ($4.95 for the first month) | – Credit report alerts – Unlimited access to credit report and score – Personalized credit analysis and advice – Access to $50,000 identity theft insurance |
| Equifax | $24.95 ($4.95 for the first 30 days) | – Alerts of changes to your credit report – Up to $1 million in identity theft insurance – Identity restoration – SIN monitoring – WebScan – Credit Score Trend |
| Borrowell | Free | – Spot errors on your credit report – Identify fraudulent activity |
| First Report | $12.99 or $19.99 | – 24/7 monitoring of credit accounts and reports – Alerts to report changes and suspicious activity – Identity restoration |
| ID Assist | $14.99, $19.99, or $24.99 | – Quarterly credit report – Dark web monitoring – Identity theft restoration – Risk assessment tool |
Pros Of Credit Monitoring
There are several reasons why you may want to consider investing in a credit monitoring service:
- Track your credit score. If you’re trying to build your credit scores, a credit monitoring service can help you keep tabs on your progress.
- Alerts of changes to your report. A credit monitoring service can notify you right away of any suspicious activity, such as a new credit account opened in your name or missed payments.
- Additional tools. Some credit monitoring services come with additional features and services that can help you monitor and build your credit scores, as well as restore your identity if you’ve been a victim of identity theft.
Cons Of Credit Monitoring
While there are perks associated with credit monitoring services, there are also a couple of drawbacks to consider:
- Extra fees. Most credit monitoring services will have a monthly fee, which can range from $12.99 to $24.99 a month.
- Won’t prevent identity theft. Credit monitoring does not prevent identity theft. It only helps you identify it quickly.
Can You Freeze Your Credit If You Suspect You’re A Victim Of Identity Theft?
Depending on where you live, you may be able to put a credit freeze on your credit account. Also known as a security freeze, a credit freeze prevents the credit bureaus from sharing your personal or credit information with creditors when they try to access it.
With a credit freeze in place, anyone who tries to steal your data and open a new account in your name will be blocked from doing so.
Credit freezes are only available in Quebec.
DIY Credit Monitoring
If you don’t want to spend money on a credit monitoring service or prefer to take control on your own, you can take the DIY approach to protecting your identity. The best way to do this is to pull your credit report from both credit bureaus in Canada.
Your credit reports include your credit card accounts and loans. Check your reports to see if any credit card accounts and loans have been opened in your name that you didn’t take out. This can be a huge red flag that your identity may have been stolen.
Where Can You Check Your Credit Reports?
You can pull your credit report for free from one of the major credit bureaus in Canada in several ways:
| Equifax | TransUnion | |
| Online | Through your myEquifax account | Through your TransUnion Consumer account |
| Telephone | 1-800-465-7166 | 1-800-663-9980 |
| Mail your Consumer Request form to: Equifax National Consumer Relations Box 190 Station Jean-Talon Montreal, QC H1S 2Z2 | Order your credit report by mailing: TransUnion Consumer Relations Department P.O. Box 338, LCD1 Hamilton, ON L8L 7W2 | |
| In Person | At an Equifax location near you | Find a TransUnion location near you |
How Can You Tell You’re A Victim Of Identity Theft?
It’s important to understand the signs of identity theft to protect yourself. Some tell-tale signs include the following:
- You see unfamiliar transactions on your credit card or bank accounts.
- You get calls from debt collectors demanding repayment for debt that’s not yours.
- Credit and bank account statements are no longer sent to you in the mail.
- Your bank or credit card company calls to tell you that you’ve been accepted/turned down for a credit product you didn’t apply for.
If you notice anything suspicious, speak to your creditor or credit bureau to have the problem fixed right away before the problem worsens.
Is There A Way To Stop Identity Theft From Happening In The First Place?
Though criminal identity theft tactics are growing increasingly sophisticated, there are many things you can do to mitigate the risk of becoming a victim, such as the following:
Store Sensitive Documents In A Secure Location
Keep sensitive data and documents stored securely in your home, like in a safe or locked cabinet. This is especially true if you have a roommate, employ outside help, or have frequent guests.
Destroy Financial Documents Before Discarding Them
Before tossing out old documents with sensitive information on them, destroy them first by having them shredded. This includes documents like bank statements, mortgage statements, credit card bills, insurance forms, and other financial information.
Clear Your Mailbox Often
Don’t let your mail sit in your mailbox for too long. Protect your mail. If possible, bring in your mail daily. If you’re away, ask a neighbour or friend to check your mail, or have it temporarily paused with your mail service provider. If you move, make sure to have your mail forwarded to the new address.
Only Use Safe Websites
Conduct online purchases only on safe websites only. One way to check if a website is secure is to see if the URL starts with “https”, which means the connection between the website server and your web browser is encrypted. There are also free website reputation checker tools available online that will scan a website with several website reputation and blocklist services to verify if the website is safe.
Only Provide Sensitive Information If Necessary
Whether you’re dealing with someone in person, by phone, or online, only offer personal information that is absolutely necessary. And when doing so, make sure the source you’re providing this information to is reputable and trustworthy.
Be Careful With Public Wi-Fi
If you’re going online in a public space using free Wi-Fi, be careful with the sites you visit and the information you share online. This includes doing your banking or using your credit card to shop online. When using public Wi-Fi, your mobile device is vulnerable to hackers and viruses, so save your sensitive online activity for when you’re at home on a secure network.
Use Passwords Wisely
When choosing a password, consider using complex passwords that would be difficult, if not impossible, to figure out or hack into. Further, you should consider changing your passwords every so often in case a hacker eventually figures your password out. Finally, consider using different passwords for different websites to make hacking into your accounts even more challenging for fraudsters.
Check Your Credit Report Regularly
It’s always a good idea to pull your credit report every few months and review it for accuracy. If you spot any mistakes, you can dispute them with the credit bureaus and have them fixed. This step alone can help you detect identity theft early to minimize its impact.
Keep Your Virus Protection And Firewalls Updated On Your Computer
Antivirus software and firewalls can help hinder attacks on your computer or mobile device. Doing so can prevent hackers from getting into your device and stealing your information.
Don’t Download Files Or Click On Links That You Don’t Know
Your computer or device can be hacked when you download a malicious file or click on a link. Hackers often trick people into visiting fake websites that look legit to steal your information.
If your information has already been stolen, there’s little you can do to prevent it from being used by criminals. Your best plan of attack is to habitually monitor your credit report, bank statements, and credit card statements for suspicious items. Should you discover evidence of fraudulent activity, submit a dispute with the credit agencies right away.
What Should You Do If You’ve Been A Victim Of Identity Theft?
Nobody is immune to identity theft. If your identity has been stolen, follow the steps below to remedy the harm done and prevent the situation from escalating further:
- Call The Police – Report the identity theft incident to the police, and request a copy of the police report so you can share it with your bank, credit card providers, lenders, and credit bureaus.
- Contact The Credit Bureaus. Call Equifax and TransUnion to place an alert on your credit report. This warning will encourage lenders who access your report to contact you and verify your identity. Similarly, if you live in Quebec, you can also place a credit freeze on your account, which will prevent lenders and others from accessing your credit report completely.
- Notify Your Creditors. You may want to consider changing your bank account and credit card numbers.
- Report The Incident To The Canadian Anti-Fraud Centre (CAFC). The CAFC can provide you with advice and guidance if you’ve become a victim of identity theft. You can contact them at 1-888-495-8501 or by visiting their website.
- Cancel Stolen ID. If you’re the target of identity theft after your ID has been stolen, consider cancelling them right away. This includes anything like a passport, driver’s license, or health card.
- Get Legal Assistance. In some cases, you may want to get legal help. If you can’t afford to hire a lawyer, there are more affordable — and even free — resources available, like Legal Aid or Pro Bono Ontario.
Bottom Line
Credit monitoring can effectively warn you of fraudulent activity on your credit report, allowing you to quickly take action to fight fraud and identity theft. While it may not prevent identity theft, credit monitoring may help minimize the damage caused by alerting you to take immediate steps.
