Your bank account can be frozen for a number of reasons, but the most common are suspected fraud and unpaid debt. And if it happens while you’re overseas, it could put you in a tough situation. In any case, you’ll need to contact your bank or creditor in order to get your account unlocked.
3 Reasons your account may be frozen
Suspected fraud
This occurs when your bank sees a string of strange activity in your account, like suspicious log in attempts, unprecedented big purchases or transactions occurring in different locations at once. Some banks will notify you if they have to freeze your account, either by a phone call or even text. However, you may find out before they contact you if your debit card gets unexpectedly declined.
Outstanding debt to creditors
A creditor can seek a court order to freeze your account and automatically withdraw its funds in order to pay an outstanding debt. Even your bank could freeze your account to collect an unpaid debt, like credit card debt, from your account. A creditor would only do that, however, after multiple attempts to communicate with you to settle the outstanding debt.
Outstanding debt to the government
The Canada Revenue Agency (CRA) has the right to freeze your account and withdraw funds, without a court order, if you owe them money and haven’t arranged payment. Again, they wouldn’t freeze your account without first communicating with you about the issue.
Must read
Bank account freeze rules Canada
Who can freeze a bank account in Canada?
Financial institution
Financial institutions typically include a clause in their account agreements stating they can temporarily freeze your account if they suspect fraudulent activity or unauthorized transactions.
They may also freeze your account if you owe them money, such as an overdraft or unpaid loan.
Canada Revenue Agency
Section 224 of the Income Tax Act states that the CRA can require a financial institution to freeze a customer’s account and transfer funds to the government to settle unpaid tax debts without obtaining a court order.
However, the CRA will give you a verbal warning by phone, then send a written letter before taking action. And, the CRA can only collect on a debt for either 6 or 10 years, depending on the type of debt.
Creditors
Creditors can freeze your account by obtaining a court judgement and then serving a Notice of Garnishment to the financial institution.
Law enforcement
According to the Criminal Code of Canada, law enforcement agencies can also freeze bank accounts involved in criminal investigations.
How to unfreeze a frozen bank account in Canada
Whether you’re on home soil or overseas, you’ll need to contact your bank as soon as possible if you need to unfreeze or unlock your bank account. Most banks will require you to call in to verify your identity, as opposed to going online to fix the problem. If you’re overseas, try using Wi-Fi calling or a landline to avoid international roaming charges from your cell phone company.
-
Call CIBC’s domestic line at 1-800-465-2422 (Canada or US) or the international line at 1-902-420-2422. Follow the prompts to speak with a customer service agent and verify your identity to unlock your account. If you’re deaf or hard of hearing, call 1-800-465-7401 for TTY.
-
If you’re in the Canada, call 1-800-769-2511. Otherwise, use +800-769-2511 and replace the “+” with the international access code according to the country you’re in. Call 1-800-661-1275 for TTY.
-
If your Neo Financial account is frozen, you’ll have to call 1-855-636-2265 to talk to a Neo Financial representative.
-
Call 1-800-4SCOTIA (1-800-472-6842) if you’re in Canada or call collect (416) 701-7200 if you’re outside of Canada and the US. Speak with a customer service representative to verify your identity and unlock your account. If you’re deaf or hard of hearing, call 1-800-645-0288 for TTY.
-
Dial 1-844-837-9228, and if you’re outside of North America call (514) 881-3845. You’ll have to verify your identity to unlock your account. If you’re deaf or hard of hearing, phone 1-877 CALL BMO (225-5266)
-
For domestic inquiries, dial 1-866-222-3456 and follow the prompts to speak to an operator. As of September 2025, the fastest way to talk to an agent during the identification process is press “2” followed by “0”. When traveling outside of North America, use the appropriate international access code number in front of the 1-866-222-3456 number.
You can also text TD with a message that is 136 characters or less, at TDHELP (834357).
If you’re deaf or hard of hearing, dial 1-800-361-1180 to reach support by TTY.
-
Call Tangerine from within Canada at 1-888-826-4374 or 416-756-2424. To call from anywhere outside Canada, dial 416-758-3139. If you are deaf or hard of hearing, Tangerine accepts Third-Party Relay calls through their other phone number (1-888-826-4374).
-
Call 1-844-437-2265 to talk to a customer care team member at EQ Bank and unlock your account.
-
Check the back of your credit or debit card to see if there’s a number listed that you can call.
If you’re outside Canada and an international number is available, call that one. If it’s not specified, call whatever customer service number is printed on the back of the card.
If there’s no number listed, look for contact information on your bank’s website. If you can’t find a number or you’re unable to make calls, you can try contacting your bank through email or a secure message center from within the bank’s app.
How to unlock your account when creditors freeze it
Contact the creditor and prove that you intend to pay your debt. You can contact your bank to find out which company has frozen your account. Once you’ve worked out a payment schedule with you’re creditor, it’ll likely unfreeze your account.
In the meantime, you could consider opening up another bank account with a different bank and arranging to have your paycheque deposited there. That way you’ll still have access to your money, even while you sort out your finances with your lender.
How to withdraw money from a frozen account
Withdrawing money from a frozen bank account is generally not possible until the freeze is lifted. Start by calling or visiting your bank to understand the reason for the freeze. If it’s suspected fraud, your bank will likely investigate before unfreezing the account.
If your account is frozen due to unpaid debt, you won’t be able to withdraw any funds until your debt is paid or you work out an arrangement with the CRA or creditor, such as a payment plan.
Why would my bank suspect fraud?
Banks need to be more vigilant than ever to protect their customers against fraud. As part of this protection, banks have systems in place to monitor customer accounts for any suspicious activity.
Online account log in issues
One common reason a bank may freeze your account is because of errors when you tried to log in to your online banking or mobile app profile. If you’ve used the wrong password too many times, your account may be locked for a few minutes.
In that case, simply wait until you can attempt to log in again, and retry your password. If you continuously enter the wrong password, your account might be locked indefinitely, which would require you to call your bank to get it unlocked.
Your account may also be locked if you enter any incorrect information while attempting to reset your password. Again, you’ll likely need to call your bank directly to sort out any issues.
Transactions in Canada
Cashing bad cheques, making unusual purchases or large deposits and having inaccurate personal information can lead to your account being flagged. Banks also look out for small purchases that are immediately followed by large ones, as thieves often use small purchases to test an account before buying what they want.
Banks also sometimes track fraud by location. For example, let’s say you use a credit card in one city and 1 minute later a debit transaction from your account occurs in a city many miles away. The bank may assume that one of those transactions was unauthorized since you can’t be in two places at once. In that case, your account may be frozen.
Transactions overseas
When your credit or debit card is used to make a purchase in a different country without warning, it can be a sign that it was stolen. To protect your account, your bank may freeze it until you can verify your identity and confirm the card is in your possession.
How can I prevent my account from being frozen due to fraud?
Banks are always on the lookout for suspicious activity, so you should take precautions to avoid having your account frozen by accident.
Protect yourself from fraud at home
Avoid making unusually large deposits or purchases, make sure all cheques you cash are legitimate and keep your personal information up to date.
Additionally, try not to stray too far from your usual spending habits; if you usually spend $10-$20 per day on your debit card, suddenly buying a series of luxury items or shopping in expensive stores could raise suspicion.
Protect yourself from while traveling
To keep your account from being flagged for potential fraud while traveling, let your bank know where and when you plan to travel before you leave. You can do this by calling your bank, visiting a branch or using the online platform or mobile app. However, bank security algorithms are constantly improving to recognize travel transactions, so some banks no longer require you to call in advance.
How to prevent your account from being frozen by creditors
Creditors, including the government, just want to know they can get their money back eventually. So if you know you can’t make a payment, then call them immediately to let them know and possibly arrange an alternative payment schedule.
They often make provisions for people struggling to make debt repayments, and by communicating, you’re showing them you plan on repaying the debt. Usually, a creditor won’t take steps like freezing your account, if you’re in constant communication with them about your financial situation.
In some cases, you might have to consider filing a consumer proposal or declaring bankruptcy, if you know you won’t be able to repay a debt.
How to prevent your account from being frozen by the CRA
The best way to prevent the CRA from freezing your bank account or garnishing your wages is to pay your debts before this happens as you’ll receive multiple warnings. Make sure you file any missing tax returns as well, as this may be the reason the CRA is seeking funds.
If you can’t pay the debt in full, call the CRA and ask to set up a payment plan to pay it off over time.
You can also file a Notice of Objection if you believe the CRA’s assessment is incorrect. The notice must be submitted within 90 days of receiving the Notice of Assessment stating you owe money.
Bottom line
If your account is frozen for any reason, you should immediately call your bank to speak to a customer service representative. In most cases, you’ll be able to verify your identity and get your card unlocked almost instantly. And if you’re not happy with the customer service you’re getting, compare other bank accounts so that you don’t have to deal with this next time.
Frequently asked questions about frozen bank accounts in Canada
-
Hiding your PIN as you enter it into a machine and keeping track of your cards during transactions are two good places to start. Banks may have additional features to make it easier to detect fraud and avoid your account being frozen. Contact your bank's customer service team to find out what fraud prevention measures are available to you.
-
If your account was frozen because of suspected fraud, you'll likely be able to use your card almost immediately after verifying your identity. If your account was frozen for another reason, it'll depend on why your account was frozen and whether the issue is resolved. Contact your bank to learn more.
-
In Canada, there's no legal limit to the amount of time a bank account can be frozen. A bank will typically only unfreeze an account once the issue that caused the freeze has been resolved. For example, if your account was frozen due to unpaid debt, the account will remain frozen until either the debt is paid or an agreement is reached with the creditor.
-
In some cases, you may need to wait a while before your card is active. Call your bank back and let them know that your card isn't working to find out if you need to take any additional steps — and ask them directly how long it will take for your card to start working again.
-
Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.
Chelsey Hurst is a Growth Manager at Finder, specializing in banking and investments. She loves empowering people to avoid financial pitfalls and make better decisions with their money. Chelsey has a Bachelor of Science from Redeemer University, a Master of Science from McMaster University, and has won multiple awards for research communication. In her spare time, Chelsey enjoys cooking and taking long walks in nature. See full bio
- Banking
- Stock Trading
- Cryptocurrency
Tim Falk is a freelance writer for Finder. Over the course of his 20-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio
- Banking
- Personal Loans
- Car Loans
- Stock Trading
- Cryptocurrency
More guides on Finder
-
Tangerine vs Wealthsimple: Which One Is Right for You?
This popular digital bank and fintech go head-to-head to see who comes out on top.
-
Neo Financial vs Wealthsimple: Which One is Best for You?
Should you choose Neo or Wealthsimple for your banking, credit card and investing needs?
-
KOHO vs Neo Financial: Which one is right for you?
KOHO and Neo Financial go head-to-head to determine which fintech challenger comes out on top.
-
Simplii vs Tangerine: Which bank is better?
Check out an in-depth comparison of Simplii Financial and Tangerine to find the best digital bank for you.
-
EQ Bank vs Wealthsimple: Which one is right for you?
We compare EQ Bank and Wealthsimple head to head to see how their banking products and services stack up against one another.
-
Simplii Financial vs CIBC: Which bank is right for you?
Compare Simplii Financial vs CIBC to find the best digital bank in Canada for you.
-
Simplii Financial vs KOHO: Which one is right for you?
Compare Simplii vs KOHO to see which digital bank best suits your everyday financial needs.
-
Simplii Financial vs EQ Bank: Which bank is right for you?
Simplii and EQ Bank go head to head on fees, features, rates and mobile apps.
-
15 best new bank account offers for November 2026
Earn cash, rewards points, bonus interest rates and more with these new bank account offers and promotions.
-
Tangerine vs EQ Bank: Which bank is better?
Compare Tangerine and EQ Bank to find the best digital bank in Canada for you.