Identity theft fraud is on the increase. In 2017 there were a record 174,523 cases of identity fraud.
There are three large UK databases aimed at alerting lenders to possible fraudulent applications for borrowing: National Hunter, Cifas and Sira.
Cifas has warned that Facebook, Twitter and LinkedIn are a “hunting ground” for identity thieves,
Many people will go their whole lives without ever needing to know anything about these fraud databases, but there are three situations where you may want to find out more:
- if you are being asked to supply a lot of extra information whenever you want to borrow some money;
- if you have been rejected for credit and can’t think of any good reason why this might have happened; and
- if you have been the victim of identity theft and you want to stop it happening again.
1) You are being asked to supply more information
If you try to take out a new mobile contract or sign up in a shop for a 0% deal on a new carpet you are buying, then you are contacted later and asked to send proof of identity/proof of address, this may be a sign that your credit application has been flagged as needing more checks. The creditor could have been alerted to possible fraud concerns by running your applications through one of the fraud databases.
(NB I’m talking about something unusual here – if you apply to open a bank account or a savings account, you normally have to provide proof of identity/address. This isn’t fraud prevention – although it does help with that – it is part of the standard money-laundering checks banks have to make.)
If this happens once it’s probably no big deal – after all you do want lenders to make checks otherwise there will be a lot more identity theft than there is at the moment. But if you find it’s happening a lot, you might decide to find what is on the fraud databases that could be causing this – see below for how to do this.
2) You can’t imagine why you have been rejected for credit
If you are turned down when you apply for a loan, credit card or anything that requires a credit check, you need to think why. There are many possibilities and although having a problem entry on a fraud database is one, it is pretty unlikely, so you should look at the more common reasons first:
- debt problems such as CCJs, defaults, late payments etc on your credit history with any of the three Credit Reference Agencies (CRAs)? Here’s how to check your credit files;
- check the personal information on your CRA records is correct: names, address, old addresses, on the electoral roll (lenders think this is really important, so sign up if you aren’t!);
- credit score problems with anyone you are linked to financially? Try to de-link from anyone you no longer live with or who has a poor record;
- you have too much borrowing already for your income – this is a common reason for being refused a large consolidation loan;
- have you got too much spare credit?
- too many recent credit applications? Don’t make any more for a few months!
- little or no credit history? Lenders like to see that you are good at managing credit, so it can be hard to get anyone to accept you at first. Try a low-value monthly mobile contract or talking to your own bank. If they don’t accept you, consider a “bad credit” credit card – be careful as these can be traps for the unwary.
- previous history with the lender. If you had debt problems a long while ago with this lender, the lender may still have records of these even if they have disappeared from your credit file.
But if your credit record appears fine and there don’t appear to be any other reasons why you should be turned down then it is a good idea to check the fraud databases, see below.
3) You have been the victim of identity theft
Look out for anything unusual:
- debts on your CRA reports that you don’t recognise;
- getting letters/emails/phone calls from lenders or debt collectors about credit you didn’t ask for / accounts you don’t know you have / goods you didn’t order. Even if these are saying that you have been refused credit, you should follow up on this as the fraudster may try again and succeed;
- payments from your bank account or credit cards that you don’t recognise. Of course this may just be a payment you did make where you don’t recognise the company name, but it’s better to check up on mystery lines to be sure;
- regular monthly bank account or credit card statements do not arrive;
- a debit or credit card expires and you haven’t been sent a replacement.
If you spot one identity theft problem, there may be others. You need to check all three CRA files for entries that you don’t recognise and it’s a good idea to check both fraud databases.
See Loans taken out in your name for details of one reader’s problem and my suggestions for tackling it.
Checking the National Hunter database
National Hunter keeps records of credit applications to the 50 lenders who use its system – at the moment it has about 630,000 records. Lenders then check this when they receive a new application, looking for inconsistencies. The idea is that someone who is applying for credit in your name may not know your date of birth, middle name, marital status, income etc, so if a National Hunter check throws up something which doesn’t match, the application can be looked at in more detail. Obviously this could generate flags where there isn’t a real problem – using a nickname, not a full name or if you have just received a large pay-rise. The aim is for the lender to make further enquiries, not automatically reject an application.
To check what information National Hunter have about you, you need to make a Subject Access Request, which they have to reply to within 40 days. Use the National Hunter SAR form and enclose the proof of identity required. there is now no charge for this.
This information may show nothing interesting – you recognise all the applications and they all look correct. Just because your application is on the database doesn’t mean that it is suspected of fraud. But if there are applications held which you didn’t make, this could be identity theft and you need to look into it further.
The other possibility is that a lender appears to have recorded something incorrect about you – this is much rarer. For example, a lender may have recorded “hidden buy to let” against your mortgage application, which could result in you being rejected for other mortgages. If this happens you need to ask the lender to correct the information, not National Hunter who are only holding what is reported to them. If the lender refuses to correct information, complain to the ICO.
National Hunter retains information depending on how the lender flagged the information:
- for 6 months – applications marked with an overall status of ‘Clear’, i.e. the lender has no concerns on the data provided within the application;
- for 3 years – applications marked with an overall status of ‘Inconsistency’, i.e. the lender has identified a discrepancy between the information provided by the applicant and information found, or not able to be found or verified elsewhere;
- for 6 years – application marked with an overall status of ‘Refer’, i.e. any National Hunter member who accesses this record may wish to contact the original loading member for further information if required. The reason for the refer status is usually included within the data held.
Checking the Cifas database
When a Cifas member identifies a fraud, a warning is placed on the Cifas database. This shows the name used in the fraudulent application. If this is your name, it doesn’t mean that you are suspected of fraud, just that someone has used your name. So if you apply to another Cifas member, they will get a message saying Cifas – Do Not Reject – Validation Required. This could be why you are being asked to supply additional information when you apply for credit. By requiring extra proof of who you are, it is protecting you against further fraud.
To check if Cifas is holding any information with your name on it, you should make a Subject Access Request, using the Cifas SAR form and enclose your proof of identity. They have to reply to within a month but aim to reply within a week. There is now no charge for this.
If you disagree with some of the information held by Cifas, you should first try to get the lender to correct it. If this fails you can ask Cifas to look at the problem. You can also take your complaint about what the lender has done to the Financial Ombudsman – the February 2017 FO Newsletter includes some case studies about Cifas markers.
Cifas retains information relating to fraud for six years. Victim of Impersonation date is retained for 13 months.
Checking the Sira database
The National Sira Fraud Prevention database holds c 1,500,000 records. If you want to see if any information is held about you, complete the SIRA SAR form. and supply the relevant id information.
Cifas “Protective Registration”
If you have had identity theft problems, or perhaps you are just worried that you could have if you know some personal information has been stolen, then to try to prevent them from happening in the future you can ask Cifas for Protective Registration:
When you request Protective Registration, we place a warning flag against your name and other personal details in our National Fraud Database. This tells any organisation that uses Cifas data to pay special attention when your details are used to apply for their products or services. Knowing you’re at risk, they’ll carry out extra checks to make sure it’s really you applying, and not a fraudster using your details.
This will make it harder for anyone to take out credit in your name. You won’t be refused credit because you have asked for Protective Registration, but the process will be longer and you may have to provide additional information. Protective Registration lasts for two years.
More Debt Camel articles:
Consolidating with bad credit?
De-link financially from your ex
Thinking about hard debt choices
Ali J says
Santander added my name to CIFAS and Nhunter database. halifax added it to Nhunter database only.
this was an error and after [edited: arguing] for 6 months both banks apologised and removed the markers.
They offered me couple of hundred pounds for my inconvenience. however, my losses exceeds 6 figures as the home survey report on one the house i tried buying during this nightmare says the house value will go up £100,000 when renovated.
[Edited:]
Do I now have any options to take them to court and How?
are there any specific law firms that have expertise in this area?
Many Thanks
AJ
Sara (Debt Camel) says
I agree £200 is too low an offer. I suggest talking your case to the Finacial Ombudsman.
I am sure a house may have gone up 100k in value, but realistically that would have required you to spend a significant amount of money and time so that would not be pure profit. There is no way you would get that much compensation.
But it would be reasonable to ask to be reimbused for at least your lost costs – legal, survey, searches etc.
AJ says
Financial Ombudsman have people without any experience looking into matters as a third party customer service agents and often sides with the banks/companies
therefore i m not really confident.
and the cost of renovation was nothing more than 10-15K it was generally a very good deal as both husband and wife died and family wasn’t interested to keeping the big house. also i have invoices due in thousands for advisors who helped me fight the banks.
i got a mortgage approved within 10 days of removal of my name from the database. i lost so much of my deposit to the rent which i could have avoided which my rent is twice the mortgage payments.
the mortgage was approved in the first place and near to the exchange of contracts santander pulled out
the distressed caused also led me to depression. i have been taking therapies and aniti depressants for a year now.
whole family turned on me thinking i had done something wrong
the banks could have avoided all of this by asking more questions instead the decided it was easier to just out my name on database not knowing how much it can affects someone’s life.
Irfan says
Hi Ali
How we can fight with the bank, i have similar views on Financial Ombudsmen, they are not helpful. What are the other options we have ?
Please let me know.
Thanks
Irfan
Sara (Debt Camel) says
As he explained, Ali J got his defaults removed by convincing the bank they were wrong.
He did not “fight with the bank”.
I suggest you follow the same route. Try to convince the bank and if that doesn’t work, go to the Financial Ombudsman.
Your only other option is court. To do that you need professional advice from a solicitor.
max says
Hi, me and my partner are in similar situation. We have just been refused a mortgage and after request of info from N Hunter it became apparent that our names have been flagged up to lenders.
I am now looking for the ways to contact bank and get hem to remove information. It was also Santander who flagged us up.
Can you suggest how and who you contacted
Ali J says
Mortgage and loan applications
Santander operations
Bridle road
Bootle
L304gb
I totally understand what you are going through. Dont stress, take things slow and write to them. It will really help you if you can get the CiFas report as it will have more information about why they have flagged your name.
I hope things get sorted as soon as possible.
Goodluck 👍
Ali R says
Hi Sara .i applied for mortgage through a broker in 2017 offer came & vendor refused to sell the house to me . Mortgage held there . before I’ve found another property Santander send me a letter the mortgage not available. I’ve contacted them the reason. They told its head office decisions. Until this year I’ve tried with a different broker . different bank . underwriter declined. I found out I’ve got false income on my National Hunter. I’ve requested from Santander to remove the entry . They refuse to do so . Fraud done by broker with out me knowing . Now I have difficulty to option mortgage. what’s the solution to remove.
Many thanks if you reply me plz
Sara (Debt Camel) says
If you think the fraud entry is unfair, you can take your complaint about Santander to the Financial Ombudsman. This has to be done within 6 months of your complaint being rejected by Santander.
Ali R says
Thanks Sara you are very helpful
A guy name is Ali J had two entry on the National Hunter . As he said after 6 months of argument they removed. I wonder how can I get hold of them to use he’s method . Left message here a few times. Had no reply.
I wish you could help me in this matter too .
Looking forward to hear from you.
Kind regards
Ali
Sara (Debt Camel) says
He said in his comment that “both banks apologised and removed the markers”. So he persuaded the banks that it was wrong to add this marker. He probably doesn’t read this page any more.
Ali R says
Thank you Sara
He did say that & how he fight with banks . That’s what I wanted to know . I wonder if any email address left here that I could use to email him .
Thanks
Sara (Debt Camel) says
No sorry, I won’t pass people’s personal email addresses on.
But this probably wouldn’t help you anyway. Each of these complaints is completely individual. The reason he felt the marker was unfair will probably have nothing to do with your case. there are no “magic words” to use here, no piece of legislation to quote. You just need to say why you have been treated unfairly.
And as Santander have already rejected your complaint, go to the Ombudsman.
Ali R says
Thanks Sara I’ve understand it .
I was thinking what was he’s way of faught lots of way to fight them . But it’s good to know how .
Thanks
Sumera says
Hay Sara
My partner name in cifas .last year we apply mortgage but was refused. They found Halifax put my partner name in cifas that was really unfair.what we can do.name in cifas will be problem to get car insurance. If we cant our life will distoy.
Sara (Debt Camel) says
If you think this is unfair, you should complain to Halifax and take your complaint to the Financial Ombudsman if Halifax reject it.
Max says
Hi Sara,
I am looking for further clarifications as to why NHunter report say inconsistency and SIRA (Synectics) says refer on the same case? I know that inconsistency on NHunter lasts for 3 years and refer mark stays for 6 years. How about SIRA (Synectics)? Thank you for your help in advance.
K says
Hi I am in a situation where 2 years ago, I stupidly got involved with the wrong people and fraud was done on my Barclays account. My account was closed and At that time I had a Santander student account I never used but started using that instead. 2 years on everything is going fine and I call up Santander one day enquiring about an error on my balance, they said everything would be good and then 10 mins later I get a call that they are blocking acccess to my account because of a marker from CIFAS. they’ll let me know what happens in the next few days but I’m scared they’ll close this account too. It’s been 2 years and i have done nothing wrong since, I’ve been good Paid my bills, even opened savings and a help to buy USA with no problem then this occurs. I just got paid from work as well and can only take money out from branches at the moment. I’m stressing out because I think they think I’m some sort of risk. I wanna know if there’s a even a chance they’ll let me continue banking with them?
Sara (Debt Camel) says
Possibly, but I can’t say it is likely. A bank can decide to close someone’s account if they want.
Sami says
I left the UK back in 2015 and came back recently at the time I only had two credit cards in my name for which some payments were missing because of my long absence from the country. My time away has caused me a few problems one my account has been closed and I have 3 CCJ in my name. Second I went to open an account in a few banks but after opening it they close it the next day even the accounts with very basic facilities and bad credit. I am really worried and stressed out because I don’t know what to do. I checked with clear score and I can see there are multiple accounts and credit card opened and closed in my name. Without a Bank account, my survival is really difficult at the moment. Any advice would really help. I am wondering if my name is red-flagged and Is there a way that the red flag can be removed?
Sara (Debt Camel) says
If you have applied for a basic bank account, and been refused, you should ask the bank why.
If there are entries on your clear Score report that you don’t recognise and you think may be fraud, contact ClearScore and tell them: https://contact.clearscore.com/hc/en-us
Also read https://debtcamel.co.uk/loans-using-your-name-stop-identity-theft/.
You can also check the Cifas database, see Checking the Cifas database in the article above.
Jansel says
Hi Sarah would like to get your opinon is well me and my partner applied for morgage with Tesco which was declined without explaining why is been declined I have written national Hunter to find out which came saying false employment status and it says refer I have called Tesco they said we can’t do anything shall I fight with them to remove my name as it says on the letter ‘refer’ which is 6 years my solicitor said even after 6 years your name will be still there please give me some advice what to do thanks
Sara (Debt Camel) says
Which bank has put the false employment flag on the National Hunter database, is it Tesco because if something in your mortgage application or did they see a flag put there earlier by a different lender?