|
How CIFAS works
CIFAS enables Members to exchange details of applications for products, services or employment, which are considered to be fraudulent, because the information provided by the applicant fails verification checks. Members can also exchange information about accounts and services which are being fraudulently misused or fraudulent insurance and other claims. CIFAS Members also exchange information about innocent victims of fraud to protect them from further fraud.
This exchange of information is referred to in a clause on an application or a claim for goods and/or services from the private and public sectors (hereafter referred to as an "application") telling you how your data may be used. CIFAS information is not used to assess the individual's ability to obtain an account, product, facility, insurance policy, benefit or employment. It is only used to prevent fraud. CIFAS is not a Credit Reference Agency.
Members of CIFAS are required to operate effective in-house procedures to enable fraud or attempted fraud to be identified and classified. Basic information on each case is filed on the CIFAS database. The information is then transferred electronically to a number of Participating Agencies.
When a Member searches the CIFAS database through one of the Agencies, the Member is made aware of the need to investigate by means of a flagged warning. The Member is then required to conduct an investigation into the case and not just reject the application, as it may be a genuine application rather than one submitted by a fraudster.
This warning does not mean that the individual has been blacklisted. It means that extra precautions should be taken to ensure that the application that has prompted the check is genuine and this protects the individual from further fraud.
Back to top
An example
A typical illustration of how the system works would show that:
- Member A receives an application and identifies fraud. Member A records full information online to the CIFAS database.
- All Agencies updated with the details - CIFAS fraud warning now 'live' on all databases.
- Member B receives an application which includes some of the same personal details filed by Member A, so when searching the CIFAS database, there is a 'match' against Member A's filing.
- Member B seeks further details about the fraud recorded by Member A. This involves further database checks and, very occasionally, direct contact with Member A.
- Member B assesses the application and a thorough investigation is undertaken. As much information as possible is verified with third parties. If the application is fraudulent, the Member identifies the fraud type and records full details on the CIFAS database as a fresh fraud but, if not, then the normal account opening process continues.
We are committed to doing all we can to prevent fraud and staff fraud. CIFAS helps to prevent thousands of frauds every month, and this helps to keep the price of goods and services down. CIFAS also helps to prevent fraudsters obtaining employment within organisations.
Back to top
How does CIFAS protect you?
CIFAS goes to great lengths to ensure that innocent victims of fraud are protected. Provided that their current address is known and the letter used will not alert the fraudster, in all impersonation cases, CIFAS Members are obliged to send a mandatory letter to the innocent victim advising of the CIFAS warning, and how it will prevent further impersonation activity.
A CIFAS warning against an innocent victim warns other CIFAS Members to carry out further checks which may include seeking confirmation of identity to confirm they are not dealing with the fraudster. This ensures that they do not find themselves being chased for money they do not owe.
Back to top
How is CIFAS information used?
A CIFAS Member that receives a CIFAS warning from the system is not allowed automatically to refuse an application or to close a facility because of the warning. They are required to make further enquiries to confirm your personal identification details before making a decision. If they identify a fraud, they will normally not proceed with an application or may review a facility or employment. However, there are occasions when, even though a CIFAS warning is present and your personal identification details have been properly confirmed, your application will not be approved. This is because your application is still subject to the Member's standard checks and decision-making policies and you may not meet them. You may ask the Member why they have declined your facility. The Member will normally be able to provide you with an explanation and provide you with details of any credit reference agencies or fraud prevention agencies they have used.
Back to top
Who are the Fraud Prevention Agencies?
Experian Ltd: Consumer Help Service, PO Box 9000, Nottingham, NG80 7WP
Tel: 0844 481 8000 www.experian.co.uk
Equifax Ltd: Credit File Advice Centre, PO Box 1140, Bradford, BD1 5US
Tel: 0844 335 0550 www.equifax.co.uk
Callcredit Ltd: Consumer Services Team, PO Box 491, Leeds, LS3 1WZ
Tel: 0870 060 1414 www.callcredit.co.uk
Experian Limited - Experian Decision Analytics: Seabank House, Wight Moss Way, Southport, PR8 4HQ
Tel: 0844 481 8000 www.experian-da.com
Synectics Solutions Ltd: Customer Helpdesk, Synectics House, The Brampton, Newcastle-under-Lyme, ST5 0QY
Tel: 01782 664 000 www.synectics-solutions.com
Back to top
|