Identity theft fraud is on the increase. In July 2016, CIFAS warned that Facebook, Twitter and LinkedIn have become a “hunting ground” for identity thieves, with more than 148,000 victims in the UK in 2015 , up 57% on the previous year.
There are two UK databases aimed at alerting lenders to possible fraudulent applications for borrowing: National Hunter and Cifas. Many people will go their whole lives without ever needing to know anything about them, 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.
Experian have got a good leaflet on what to look out for and what to do if you think you may have been the victim of identity theft. They also have a Victims of Fraud team that can help you sort out problems.
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.
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, enclose the proof of identity required and the £10 fee.
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: enclose your proof of identity required and the £10 fee. They have to reply to within 40 days but aim to reply within a week.
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.
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.
Look out for the problems with “bad credit” cards
Refused a consolidation loan? Your options
De-link financially from your ex
Chris Greathead says
Hi there.
I have recently found out I had a default on my credit file only when I applied for a mortgage for a new home in which I knew nothing about. I contacted the company who defaulted me with a brutal letter and told them I was targeted by fraud in which they looked into and confirmed it was and told me my default would be removed after 72 hours. When this is removed how well will my score improve? Points wise?
Chris.
Sara (Debt Camel) says
I would guess it should go back to what it was before. If this fraud was recent, you may want to consider applying for CIFAS personal protection, see https://debtcamel.co.uk/name-fraud-database/.
Muhammad says
Hi,
Today i came to know when visit my bank for credit card and Point of sale, they inform me that my name is flagged, now i don’t know to whome should i contact, i never had a fraud or even i am not owing any amount from any bank. Will you please advise what to do?
Sara (Debt Camel) says
Check your records with all three credit reference agencies, looking for anything you don’t recognise as this could be identity theft. If nothing unusual shows up there, check the National Hunter and CIFAS databases as the article above says.
steve says
hi is it possible my details will be with cifas as I was convicted off failing to declare particulars to a insurance company I was also convicted off dangerous driving and imprisoned in 2011 for 2years 8 months I’ve been struggling to get a mortgage
Sara (Debt Camel) says
Why not check? It’s not the most likely reason for someone being refused a mortgage but if your credit record looks great, you haven’t made a lot of recent credit applications, you don’t have a lot of unsecured debt and you don’t have affordability problems then it’s worth looking into. You should also ask lenders who have declined you for the reason.
Peter says
Hi, upon a recent credit check after applying for a service with my bank, I have found a relative has used my name and address to get credit and subsequently defaulted for upto 3 or 4 months at a time with the credit! The account was settled in 2013 all without any knowledge from myself and has obviously made my credit score a lot worse off than I thought it was! Through discussions and a putting together a timeline I have discovered it was a close relative using my name for credit, and they have since admitted it was them to me after confronting them. Is there a way to get this off of my credit report and onto theirs? I don’t know what to do as otherwise it will be at least 2/3 years before it potentially leaves my score!
Sara (Debt Camel) says
It wouldn’t be easy. You would have to report them to the police for fraud and then inform the lender.
Molly says
Even then it’s not removed as my daughter recently found out… hell what do us decent law abiding citizens have to do ????
Sara (Debt Camel) says
Your name is incorrectly on a fraud database? Which one? What have you done to challenge this?
Tony Matthews says
Hi Virgin Money reported me to CIFAS five years ago for an error on my behalf on a mortgage application despite approving the application and me making all the required payments they are now refusing to allow me to re-mortgage with them and I have been refused by another lender for my personal data not matching the required criteria
I have written to Virgin about this but it appears to be taking ages to solve the issue , How long can CiFAS hold information about me on file after a reported Fraud
Sara (Debt Camel) says
If you have put in a complaint to Virgin Money and they haven’t resolved it in 8 weeks, you can take your complaint to the Financial Ombudsman.
C113456 says
Hi my child had an under 18 year old bank account. He received a letter one day saying that a fraudulent transaction had taken place and the account will be closed. They did close the account approx a year ago. My child is now 18 and he applied for a saving account with another bank. They refused him the account. There must obviously be a marker. What steps should we now take to clean this up. Plus how long would the marker be in the credit file.
Sara (Debt Camel) says
I suggest he checks the fraud databases and if something is incorrect, follows the steps in the article above.
If he wants to dispute that there was any fraud, he may want to take the case to the Financial Ombudsman – see the link to a FO newsletter in the article above.
Michael says
I have found out that someone used my ID to buy car insurance illegally two months ago. The insurer wrote to me and I advised them that I had not taken out a policy. That has now put a flag on my CIFAS records and I have been refused 5 new basic bank accounts and had two new accounts closed. I have contacted CIFAS and they will not discuss anything until I have proven my ID through the post and all this just before I am evicted from my home of 27 years in a weeks time. Now I cant rent another house or operate any bank accounts and that in turn means that my online ecommerce business is over so I have no income. Anyone know of a faster way to deal with CIFAS?
Peter says
Hi, I misread a question on a co-op job application form and answered incorrectly. This was to do with my credit history. I was reported to Cifas for application fraud. I checked cifas literature and it states confirmed cases, evidence based and no judgement or suspicion. I asked the co-op which part of the fraud act they are accussing me, I also asked them to structure the questions in a simpler format to stop this happening to others. I gave them an example. They said they are not familiar with the fraud act so don’t know which part. Apparently cifas told them to pass details on of applications that has miss-information. They also rejected the idea of a simpler question structure to reduce mistakes.
They referred me to Cifas stating they would no longer answer questions.
On to Cifas, who tried to state which part of the fraud act I was in breach of. When challenged stated it’s up to the company to provide evidence. Cifas also refused to answer any more questions and referred me to the ICO.
The ICO states that the co-op and Cifas BELIEVE that I have committed fraud. No evidence of fraud has been seen by anyone. There is no confirmed case of fraud. As I understand it, it is upto the data controller (co-op and Cifas) to ensure that before passing details that they are correct and lawful. When I quoted the data protection act, the ICO refused to answer any more question.
So as I see it the DPA has been broken, cifas are knowingly selling my details as confirmed and evidence case of fraud without either. Which is actually in the fraud act.
Is there anything I can do?
Sara (Debt Camel) says
You could try complaining to the Financial Ombudsman.
Daniel says
Are there any mortgage companies that would lend to you if your name was on there list with a large deposit
Sara (Debt Camel) says
No idea, you need to talk to mortgage broker who specialises in people with poor credit.
Kay says
Hi,
How long are personal records kept on the CIFAS and National Hunter database?
Sara (Debt Camel) says
Hi Kay, I have just found out the answers for National Hunter and Cifas and updated the above article.
Suzette Leprevost says
Hi. I’ve just owned up to 250 of catalogue fraud in my sons name. The balanct is 0 as I’ve paid it off. They are putting a cifas identity theft marker on his credit record and a fraud marker on mine. How long will it stay on my credit report. Will the bank close my account also will my phone ,sky and car insurance be cancelled. So worried
Sara (Debt Camel) says
It will stay on for 6 years. You should assume that you won’t be able to get any credit during this time.
I don’t know what will happen to existing accounts. I am making some guesses here.
It may be a good idea to do everything you can to “stay beneath the radar” of your bank. Make sure you never go over your overdraft limit, even better try to get your overdraft reducing as fast as possible, as banks may be going to look at people with overdrafts more closely.
I don’t think your existing car insurance can be affected. If you pay monthly, I suggest you need to save up so you can pay next years insurance as a lump sum, as this won’t need a credit check which you may fail.
If you just carry on paying Sky, I can’t see why they would credit check you. On the other hand it may be better to cancel this and use the money to solve some of your other problems!
For your phone, again I wouldn’t expect a current contract to change but you should assume you will find it difficult to get a new one. Look for sim only deals when your current contract ends.
Suzette says
Thankyou I’m also scared to death that I will be evicted from my housing association house. Can they evict me for a fraud flag. I know they report our rent account to experian. Will experian tell them I have a flag
Sara (Debt Camel) says
I very much doubt that you have broken the terms of your tenancy. Most Housing Associations have more urgent things to do than be looking closely at a tenant who is up to date with their rent and not causing any problems for the neighbours.
Suzette Leprevost says
Does criminal activity not count as a breach or would the police have to inform them. I haven’t been charged with anything but I did admit what I had done to the catalogue company who said they would put a comment on file to reflect this
Sara (Debt Camel) says
You would have to check the terms of your tenancy. The police have better things to do with their time than report this sort of thing to your housing association. I understand this must feel so precarious and unsafe, but worrying won’t help. All you can do is be squeaky clean in everything for a long while. Pay your rent early. Get your overdraft going down as fast as possible. Plan to be able to pay for your car insurance in one go. Do everything you can to avoid making any applications for credit as they are very likely to be refused.
Suzette Leprevost says
It says criminal convictions or criminal activity. I’m so scared
Sara (Debt Camel) says
A conviction means you have been prosecuted, and no one is talking about that. I’m guessing but I wouldn’t have thought that your housing association would be concerned about this (assuming you have been a good tenant of course). And I don’t think they are likely to find out about it either.
Julie tolfrey says
Hi, I have just been refused for car finance. Have checked my credit rating on Experian and it is showing at 996 out of 999 (excellent). My daughter has a CIFAS Cat 6 marker against her name will this have an affect on my credit and been being accepted for credit as we live at the same address? If so can I dispute it as I have no involvement?
Sara (Debt Camel) says
Well it shouldn’t. HAve you asked why you were refused the car finance? Have you checked to see if there is anything on your CIFAS account?
Julie tolfrey says
I have asked for more information on why I have been rejected but they can’t disclose it due to data protection. I have had finance with them for the last 4 years and never missed a payment. On my credit report it isn’t showing any CIFAS, is there somewhere else I should look? I’m worried that the marker is linked to our address and not my daughters name. Thanks for replying so quickly!
Sara (Debt Camel) says
yes, you can send CIFAS and National Hunter requests as the article above explains.
Mo saidy says
hi, I’m a university student and recently Barclays put my bank account under review and decided to close my bank account with no explanation which they are allowed to do according to their terms and conditions. i had another account with NatWest and they have also closed my account. I have never done anything fraudulent to my knowledge neither have i had an overdraft with either bank. this has left me without a bank account and I have a feeling maybe my name has a cifas marker. can i open a new bank acccount even if its a basic account or is this not likely ? thanks
Sara (Debt Camel) says
Making new applications before you know what is going on isn’t a good idea. I think you should check the National Hunter and CIFAS databases. You could go to your local Citizens Advice and ask for their help.
Jay says
I just found 3 defaults on my credit record , it was a close friend that took a few credit cards under my name . he is paying the debt and I have contradictory feelings as I don’t want to press charges against him but I need to get this defafaulds removed
Sara (Debt Camel) says
You are going to have to decide what to do. Unless you are prepared to report him for fraud, it’s highly unlikely you can get the defaults removed.
Jay says
I probably need to report him , but I am concern about him fancing prison or something like that , he was in a very bad place but getting better now ,and feel responsible somehow of what happens to him