Should I be worried about the Cifas fraud alerts on my credit report?

Seeing a Cifas fraud marker on your credit report can be concerning. The word “fraud” alone sounds scary, so it’s natural to wonder about the effect a Cifas fraud alert could have on your credit report.

A Cifas fraud marker on your credit report shouldn’t be a cause for concern. In fact, it’s a sign that steps have been taken to keep you protected. Let’s explore what a Cifas entry actually is, how it affects you and any applications that you make, and whether it can be removed. We’ll even look at other kinds of Cifas fraud alerts that aren’t seen on credit reports.

What is a Cifas fraud alert?

Cifas – the Credit Industry Fraud Avoidance System – is a not-for-profit fraud prevention membership organisation. They manage the National Fraud Database, which they then share with their member organisations. There are two types of fraud alerts seen on credit reports:

Victim of Impersonation

Placed by Cifas after they receive a report of fraud from a lender. A lender may choose to file a Victim of Impersonation entry with Cifas if they receive an application that they believe to be fraudulent, or if you have reported an incident of fraud to that lender.

A Victim of Impersonation entry will normally show on your credit report for 13 months. It protects you from further identity fraud attempts and lenders will take extra steps to verify you when receiving an application in your details. The good news is that it has no impact on your credit score. So while it may take slightly longer to go through a credit application, you can be confident that you’re protected.

Protective Registration

Placed by Cifas after you sign up for it yourself. Protective Registration can be purchased directly from Cifas, and it costs £30 for 2 years. A Protective Registration entry will then show on your credit report, meaning any Cifas members will take extra steps to verify your identity if they receive a credit application in your details. Like a Victim of Impersonation entry, Protective Registration does not affect your score – you’ll just need to allow a little extra time when making a credit application for the additional security checks.

Both alerts will show with all three main credit reference agencies - Experian, Equifax, and TransUnion. It’s important to know that neither Cifas entry affects your eligibility for a credit product. All that will happen is a lender will see “Cifas – Do Not Reject – Validation Required” along with your credit report. This prompts them to take additional verification steps.

Other types of Cifas fraud alert

Although you can only see two types of Cifas markers on your credit report, there are many more that you can’t:

• First-party fraud is where a consumer has not paid for something and they have no intention of paying.

• Insurance claims fraud is where a consumer gives false information when making an insurance claim.

• Facility takeover is where an account has been taken over and used for unauthorised transactions.

• Application fraud is where someone makes an application with false information, like their income.

• Asset conversion is where someone sells something that they don’t own, like a leased car.

• Misuse of facility is where an account has been opened, accessed, or used for the purpose of fraudulent activity.

These markers can last up to six years, but you won’t be able to see them by checking your credit report. It’s likely that you wouldn’t know you had one of these, until a lender told you. You would need to submit a Data Subject Access Request (DSAR) to Cifas to find out what Cifas hold about you.

How can I find out why I have a Cifas fraud alert on my credit report?

There are two ways to try and find out more information about a Cifas marker. The first is to contact the lender who filed it – they should be able to tell you more about the fraudulent attempt. The lenders details will show on your credit report with the Victim of Impersonation.

The second way is to proceed with a DSAR to Cifas. A DSAR is free and Cifas is required to respond within a calendar month.

Can I get a Cifas fraud alert removed from my credit report?

If a Victim of Impersonation is showing on your credit report, it’s likely you’ll already know about it. You’ll probably receive a letter in the post to say why the alert was necessary. But if you want to try and remove it, you can get in touch with the lender who filed it to see if they can take it off.

Similarly, you should already know that you have a Protective Registration on your report because you’d have applied for it. If you feel that the protection is no longer required, just let Cifas know and they should be able to remove it for you.

To recap, Cifas markers should not be a cause for concern; they’re simply an added level of protection. Lenders don’t consider them negative markers and, therefore, shouldn’t reject a credit application based on their presence.