What Is CIFAS
A CIFAS marker is a record placed by the CIFAS, the UK’s fraud prevention community. It alerts financial institutions, whether it is a bank, loan provider or an insurance company, about potential fraud risks, associated with an individual. There are many reasons why CIFAS marker could be applied but we have seen more and more cases when individuals find that they have a CIFAS marker by chance, causing them a lot of inconvenience from closed bank accounts to cancelled insurance or rejected loan application.
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Why A CIFAS Marker May Be Applied Against You?
Evidence suggesting potential fraud or suspicious activity on customer’s account can be among reasons why a CIFAS marker is applied. Other reasons may include:
- Identity fraud
- Misuse of facility – for instance, using an account for money laundering
- False insurance claim
- First party fraud
- False application – when a person provides false information or documents in an application for a financial fraud
Each of those markers can last up to six years and may cause significant inconvenience to a person’s life and career. It is also possible for an individual who believes s/he is at risk of fraud to ask for a marker against their name, and it would last for two years (a so-called protective registration).
Can A CIFAS Marker Affect My Employment?
It really depends on the sector you are seeking your employment in. Having a CIFAS marker may potentially impact your employment prospects in the financial industry and/or civil service. It may also have consequences for your membership in some professional bodies. If your employment puts you in a position of trust (for instance, you oversee finances in your company), some employers may find it hard to employ or continue an employment of someone who is suspected in committing fraud. It is up to an employer whether they would like to get more information on why a CIFAS marker was applied against you, or they choose to terminate your employment immediately.
Can A CIFAS Marker Be A Reason For My Bank Account Being Closed Or An Application For A New Account Being Rejected?
Yes. Unfortunately, a CIFAS marker can sometimes lead to your application for opening an account being rejected. If you already have an account with a financial institution, it may offer you to switch to a basic bank account with limited features. The decision would depend on financial institution’s internal policies and risks appetite, but it may be prudent to mention a marker to them to prevent the full closure of the account.
Does A CIFAS Marker Count Towards A Criminal Record?
No. CIFAS does not hold any data relating to criminal records. Only if a CIFAS marker was imposed as a result of criminal activity for which you were convicted in court, it would be featured on your criminal record.
What should I do if I believe there is a CIFAS marker against my name?
If you suspect that you have a CIFAS marker, you can submit a data subject access request (DSAR). It is free of charge and allows you to understand what information is held about you in the CIFAS fraud risk databases. DSAR can be submitted online and you will be asked to provide your full name, date of birth, address history for the last 6 years, your landline and/or mobile number and email address. CIFAS would also require at least two proofs of your identity. CIFAS is required to respond to your DSAR within one calendar month of receiving your application form and supporting documents.
What Will Happen After I Receive A Response To My DSAR From CIFAS?
Once DSAR is received and you believe that a marker has been incorrectly applied, you may decide to engage with the financial institution responsible for placing the marker. You can either request them to explain their decision or may challenge their decision. Challenging the marker can be a complex process as it would require you to provide evidence demonstrating your innocence and addressing financial institution’s inaccuracies.
If a financial institution refuses to remove a marker, you need to ask for their final decision, upon receiving of which you can choose asking CIFAS to review the complaint with the organisation concerned. Once CIFAS receives your request, it will start the review process to confirm whether a financial institution followed the right procedures. Most investigations are resolved within one month, however, depending on the complexity of a case, it may take longer for CIFAS to resolve your complaint. There are two potential outcomes of the complaint’s procedure:
- CIFAS may conclude that an organisation was wrong imposing a marker and it has to be removed, or
- CIFAS may confirm that a marker applied correctly.
After reviewing CIFAS response, you may decide on your next steps. If you choose to continue disputing your case, the next step will be to contact the Financial Services Ombudsman or any other relevant regulator/complaints scheme for the industry.
Other Fraud Databases
There are two other, similar databases in the UK that relate to fraud:
- National SIRA and
- National Hunter.
National SIRA and National Hunter markers can be removed in the same way as a CIFAS marker, and our lawyers can assist you with challenging those markers.
Next Steps
A CIFAS marker may have serious implications on your life, and you should consider seeking specialist advice and support, particularly if a case is complex. If you would like to discuss your options and want to take swift action to challenge a marker, please get in touch with our team by calling 0208 528 3171 or complete a Free Online Enquiry and we will be in touch with you.