CIFAS Markers
What is CIFAS?
CIFAS, or the Credit Industry Fraud Avoidance System, is a UK-based non-profit fraud prevention organisation. It maintains a database of fraudulent activities, helping financial institutions reduce fraud risks and financial losses. Companies that are members of CIFAS can access this database to assess potential risks before approving financial applications.
What is a CIFAS Marker?
A CIFAS marker is a flag placed against an individual’s credit report when an organisation suspects fraudulent activity. These markers alert financial institutions to potential risks and can impact an individual’s ability to obtain credit, insurance, or even maintain employment in the financial sector.
Types of CIFAS Markers
CIFAS prescribes eight different types of markers, each indicating a different type of financial misconduct and lasting for varying periods:
1. First-Party Fraud – When a customer fails to pay for goods with no intention of doing so. Lasts up to 6 years.
2. Insurance Claims Fraud – Providing false information when making an insurance claim. Lasts up to 6 years.
3. Facility Takeover – When an account is taken over and used for unauthorised transactions. Lasts up to 6 years.
4. Protective Registration – A voluntary marker requested by individuals who believe they are at risk of fraud. Lasts for 2 years.
5. Victim of Impersonation – Placed by a lender when an individual has been a victim of identity fraud. Lasts up to 13 months.
6. Application Fraud – When an application is made using correct personal details but false information. Lasts up to 6 years.
7. Asset Conversion – When hired, rented, or leased goods are illegally sold. Lasts up to 6 years.
8. Misuse of Facility – When an individual’s account is used for fraudulent activity. Lasts up to 6 years.
How to Remove a CIFAS Marker
A CIFAS marker can be damaging, but it is possible to challenge and remove it by following these steps:
1. Submit a Subject Access Request – Contact CIFAS directly to request full details of any markers held against your name.
2. Contact the Organisation – Reach out to the organisation that issued the marker and formally request its removal.
3. Request a CIFAS Review – If the organisation refuses to remove the marker, request a review from CIFAS, which must respond within 14 days.
4. Seek Legal Assistance – If unsuccessful, consult with a specialist solicitor to challenge the marker through legal channels.
How Do You Get a CIFAS Marker?
Markers are assigned for various reasons, from fraudulent activity to being a victim of identity theft. Many individuals only discover a CIFAS marker when their credit application is unexpectedly declined. If you believe you have been wrongly marked, following the removal process is essential.
What Do CIFAS Markers Affect?
CIFAS markers are shared with financial institutions, which can have significant consequences, such as:
• Difficulty obtaining mortgages, loans, overdrafts, or mobile phone contracts.
• Banks declining new account applications.
• Rejection of student loan applications due to restricted bank access.
• Existing accounts being closed without warning.
• Job losses, especially for individuals employed in the financial sector.
Does a CIFAS Marker Appear on a Criminal Record?
CIFAS markers are not criminal records but suggest financial misconduct. They only appear on a criminal record if an individual is prosecuted and convicted of fraud.
Can Employers See a CIFAS Marker?
Some employers, particularly financial institutions, can access CIFAS data during pre-employment screening. This can lead to job losses if a marker is discovered. If you have faced job dismissal due to a CIFAS marker, seeking legal advice is recommended.
Other Fraud Databases
Apart from CIFAS, two other UK fraud databases track financial misconduct:
• National SIRA – Used by financial institutions to detect fraud, with markers indicating whether further investigation is required.
• National Hunter – Similar to National SIRA, with markers categorised as ‘clear,’ ‘refer,’ ‘inconsistent,’ or ‘suspicious.’
Like CIFAS markers, these records can be challenged and removed by contacting the respective organisation directly.
Conclusion
A CIFAS marker can have serious implications on your financial and professional life. If you discover one against your name, taking swift action to challenge and remove it is crucial. If the standard removal process fails, legal professionals can provide support to protect your financial future.
For specialist advice and support. please get in touch with our litigation in London now by calling 020 7139 9266 or contacting the GOOD LAW INTL® office.
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