Scammer opens $35K line of credit at Milton bank branch using Brampton man's identity

After four months of trying to resolve it himself to no avail, Singh eventually contacted CTV News for help. Once the news outlet reached out to the bank, the $35,000 was fully refunded.

Singh’s case isn’t an isolated event, as fraud tied to new credit applications is climbing in Canada. Here’s how it happens, how you can avoid it and what to do if you fall victim.

How can a scammer open credit in your name?

Equifax Canada, one of the country’s two major credit bureaus, regularly tracks this kind of fraud, since such fraud can negatively impact your credit score. It reports that credit card application fraud reached a rate of 0.91% in the second quarter of 2026, an 8% increase year-over-year, and was driven primarily by third-party identity theft. Put another way, that works out to roughly nine in every 1,000 applications submitted.

“It’s primarily driven by identity theft,” Carl Davies, head of fraud and identity at Equifax Canada, told CTV News. He notes that Canadians are handing over personal details by clicking links, scanning QR codes and responding to texts they shouldn’t; bad actors then use that information to fraudulently apply for credit in someone else’s name.

While this can happen to anyone, some Canadians are affected more than others. According to Equifax’s findings, scammers disproportionately target Canadians aged 56 to 65.

Why might you miss it?

Most fraud alerts are built around unusual spending on cards you already carry. A brand-new account is a little different — there’s no spending history for anything to look unusual against, and it may not prompt any notifications from your financial institution. Singh caught the fraud only because he had checked his balances personally.

When you finally notice, the credit may already be maxed out, and it can then take months of calls and paperwork to prove the debt isn’t yours.

Should you freeze your credit?

Ontarians have a powerful new tool at their disposal as of July 1 — they can place a free Credit Lock, also called a credit freeze, on their Equifax report. While it’s in place, the company is legally barred from sharing their credit information with lenders considering any new credit product. The lock also doesn’t affect their credit score. Equifax previously activated the same option for Quebec residents in 2023.

Under Ontario’s regulation, credit bureaus must place a freeze within two business days of an online request or five business days of a phone request. The nation’s other major credit bureau, TransUnion, has until July 1, 2027, to roll out the credit freeze.