Following a rapid rise in fraud losses in the 1980s, which affected retail lenders predominantly, a number of lenders met in 1987 to consider their position. At the same time the police suggested that fraud prevention was a non-competitive issue and that co-operation and communication between organisations would be necessary to reduce fraud successfully. Following a series of meetings the retailers came up with the CIFAS concept and in late 1988 CIFAS became operational.

CIFAS was initially established as an association under the auspices of the Consumer Credit Trade Association. The organisation grew rapidly in the early years and was incorporated as an independent company limited by guarantee on 22 February 1991. The founder Members of CIFAS were joined by organisations from throughout the financial services industry, first by finance and leasing organisations, then banks and credit cards, followed by building societies and mortgage lenders. In recent years, CIFAS has attracted into membership: factors and discounters, insurers, and companies specialising in savings and investments, telecommunications, energy supply, mail order and share dealing.

The Office of Fair Trading (OFT) and the National Consumer Council were involved in establishing CIFAS. CIFAS was also developed in consultation with the Information Commissioner who continues to be consulted on major changes. The police have been involved from the outset and have close links with CIFAS.

CIFAS is unique and was the first data sharing scheme of its type in the world. Other schemes modelled on CIFAS have been set up in Southern Africa and Germany. These operate independently.

The association is set up as a company limited by guarantee. This is similar to the way a number of charities and professional bodies operate. CIFAS is not a charity but is a membership association run on not-for-profit principles. Any financial surplus is ploughed back into the services delivered to Members and the organisation operates in the public interest.

A Board of Directors is responsible for CIFAS. It includes elected non-executive directors from the membership together with independent non-executive directors. The Board is primarily responsible for the direction and future strategy of CIFAS. There are also elected Management Committees that deal with operational and other matters.