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
Saleem says
Hi there,
I am in need of some advise. Few years ago I did something for which I am not very proud I ran into some financial crisis and it lead me to huge amount of credit card as well over draft debt with banks. The situation became so bad for me that every bank that I had account with start closing down my accounts because of that I went into depression and to be honest it was my fault. Currently I have 2 CCJ and I had three markers on CIFAS. The positive news is that those three markers were removed last month. But I still has those two CCJs against my name. My question is I know I messed up and I am not very proud of it but after my markers removed if I apply in same banks for just basic account will I be granted an account or not ? I currently have 1 online account and I always worry that they will close that as well. Please if you can just give me some advise I will much appreciate it.
Sara (Debt Camel) says
when do the CCJs go?
what is wrong with your online account?
Saleem says
One CCJ will go in 2023 and the other 2024, I had account with Monzo it was fine for 1 year but they closed without any reason. Now I have an account with Revolt but after Monzo experience I am in panic mode.
Norman says
Hi Saleem,
There are other companies like thinkmoney.co.uk where you can open a account. They do charge a monthly fee. Please read their T&C before applying. have a read and decide.
Saleem says
Hi there,
But I was wondering after my markers removed can I apply in high street bank will there be any chance of acceptance ?
Janny says
This has just happened to me! My monzo account has been fine for the last year and a half I signed up to it after having my NatWest account shut down & they accepted me I can’t understand why this is happening since my NatWest got shut down I never did anything like it again all that’s been in there is work earnings & universal credit at one point. I’ve tried to apply to a cifas report & it isn’t letting me I’m do completely lost this is causing a lot of stress. Can I ask is revolut safe? Do u receive ur work earnings there?
Sara (Debt Camel) says
Banks will have their own internal records they check when you make an application.
I suggest it will be easier if you only apply to banks who have not either closed accounts because of your CIFAS markers or rejected you for an account because of this.
Norman says
Hi Saleem,
Once they are removed you can try, but i would suggest avoid the bank who have put the markers or contact debt agencies who then got you CCJ. Try banks who you never banked with once your credit file is all cleared.
Lesley says
Hi, I was just wondering if you could advise me please, my ex partner and I were planning our wedding and he sent a large amount of money to my account to pay for flowers dress etc
Then after we split he phoned his bank and said it was done fraudulently so now I have had bank accounts closed etc he is literally ruining my life what can I do?
Sara (Debt Camel) says
I suggest you talk to your local Citizens Advice and ask them to help you make a complaint to your bank about this.
Also check the fraud databases as the article above suggests so you know what needs to be cleared.
Ahmed says
Hi Sara,
Thanks for suggesting to contact National Debtline althgouth I am not sure what I should ask them. From your reply I get the impression that having CIFAS and National Hunter marker for being a victim of ID impersonation should ideally not be a reason to decline credit.
Ahmed
Sara (Debt Camel) says
You need specific advice on your case, do call ND.
Renville says
So I’m applying for a mortgage and fraudulent activity came up on my name when I gained access the information on the fraud database it has all my details but says clear. Does this mean I the lender will be OK to go through with the mortgage with me? Please advise
Sara (Debt Camel) says
No, you need to know where the lender saw that there had been fraudulent activity. Which database did you check?
Monique says
Hi debt camel
I have a question please,
I recently had a cifas marker removed and was lucky enough to get my first credit builder credit card to help with improving my score I currently have a 546 score rating with Experian and two settled defaults and one CCJ which will be paid off by September would my chances of getting a PCP finance at a good rate next year June be likely or would I just have to accept that I would have to pay High apr rates for car finance. I’m hoping with the credit card utilisation and everything else that’s positive on my credit report I will be okay?
Sara (Debt Camel) says
I think you need to wait and see what your credit record looks like next summer.
With your new credit builder card, make sure you use it every month but for things which come to less than 1/3 of the credit limit and that you always pay it off in full each month – that gives the maximum boost to your credit score.
Monique says
Thank you very much for your advice I will do this :)
ABC says
Hi, need help. I recently applied for a mortgage but was declined and mortgage broker did not give us answers.
recently started a new business and applied for business account. I was declined as a fraud is registered against me.
Contacted CIFAS and they have send me a report.
it came as mortgage broker used false work details and payslips. now how do I rectify that.
contact the bank who has registered as a fraud?
Please help
Sara (Debt Camel) says
You need to ask the bank that has registered the CIFAS marker what the mortgage broker told them.
Prince says
Hello, how can I check if there’s a cifas maker on my name plus how did you get it removed?
Sara (Debt Camel) says
The article above explains how to check this.
Shannon says
Hi my account was used as fraud to deposit money. I had lost my cards and As the account was one I never used and only had pence in I stupidly and niavely didn’t bother to report it. Because of this the bank assumed I was responsible. I only found this out now from a year ago as I have had accounts closed when I tried to open a savings account. I went into bank to talk to them but they were not interested and just said it will remain you failed to contact us. At the time my parents separated and we moved and for a while did not receive post and only ever got 1 letter. I admit stupidly I only thought money would be taken out but in actual fact money was put in. Waiting for Cifas but worried about my future re bank account as I can’t get one and if I wish to get a mortgage in the future
Sara (Debt Camel) says
did you report the theft of other cards at that time?
Have you complained to the bank that reported the Cifas marker?
Abdul says
Hello,
I must commend you guys for sharing your experiences and helping others.
I would like to seek help about my situation too.
My High street bank recently contacted me that they will be closing my account. I wondered why, and I was told it’s due to a CIFAS marker on my name (I never knew about CIFAS until now).
I then contacted CIFAS and I was sent a report. Apparently I was reported by MONZO for “Misuse of facility”.
Being new to the UK, I never even had a Monzo account until a friend asked me to open a Monzo account because his account is suspended and he needed to get some money from his brother.
When the money dropped in my account he asked me to send some out to another account. Immediately I sent it out, the account got blocked. With some money still left in the account. I was asked to provide another account to get the balance left but because I knew something was not right I did not provide any other account.
I didn’t pay attention to the account closure because I didn’t really need or use the Monzo account. Only to realise now that the transaction will affect my name.
I am currently unable to open any bank account and I honestly do not know how to get the marker off my record.
I’d appreciate any advice I can get as regards my case.
Regards.
Sara (Debt Camel) says
Monzo think this was money laundering. You can complain and explain the situation but it does sound like money laundering – your friend took advantage of you I am afraid.
Ali says
Hi Guys,
Just need some advise and help. I had couple of CIFAS against my name did something stupid couple of years ago. They got removed in march this year I got them double checked with CIFAS as I don’t have any. I checked hunter database there I don’t have anything again my name. The issue is that I applied for a basic Cashminder cooperate bank account which is for people with poor credit history. I the start my application got accepted I didn’t received any documentation so I gave them a ring and been told that my application has been rejected and they have sent out a letter which will gives me the reason. I told the guy that is it because I have ccj in my name he said this has nothing to do with you credit profile. so I wonder what it could be ? I know I have to wait for the letter but let’s can I fight the case for an account opening ? Do I have a chance since all markers have been removed from name? I know it is my mistake that I let this happen it first place but overall I am really stress about it. any feedback will be much appreciated
Sara (Debt Camel) says
Have you had any problems with Co-op in the past? Have you previously had an application from them rejected?
I think you have to wait for the letter and see what that says.
Ali says
Hi Sara,
Yes I think I applied last year for same account which got rejected but I didn’t knew that I had markers on my name. I assume they still think I have marker. But let’s say I got rejected for the same reason can I appeal ?
Thanks
Ali
Sara (Debt Camel) says
I suggest you apply for an account to a bank you haven’t had a problem with in the past. Landers can keep their own records for as long as they want.
Nigel says
If you have been declined for a Aip for a mortgate, because of information from a credit reference agency this can’t because your name is on a fraud database can it?
Do they only check fraud date base when a actual human does the checks a underwiritter?
Sara (Debt Camel) says
If you think you may have a fraud marker, I suggest you check the fraud databases.
If you applied through a broker, ask the broker why you have been declined.
Nigel says
I will do, however the Hunter website is down, do you have any more information on them
Sara (Debt Camel) says
the National Hunter website isn’t down, it has a problem with its htpps certificate and so you are getting safety warnings.
Norman says
Hi Nigel,
As mentioned by Sara that you have to apply for SAR from Hunter and CIFAS. Get those reports and take it from there. Best of luck.
Norman