Cifas points to sharp increase in cases involving attempts to hide adverse credit

The latest research conducted by Cifas, the UK’s leading fraud prevention service, has revealed that the number of people failing to disclose a previous address in an attempt to hide their adverse credit rose by just over a quarter (26%) in 2019. Adverse credit refers to a poor repayment history, usually on loans or credit cards.

The research, which has been released as part of the Cifas ‘Faces of Fraud’ campaign, found that over half of all cases involving application fraud activity filed on the National Fraud Database between January-September 2019 were in relation to adverse credit. Almost all of these adverse credit cases – 95% – were related to an undisclosed address.

Nearly three-quarters (72%) of these cases related to 21-30 year olds, and this age group also saw a small rise of 4% in 2019. However, incidents among the older age group decreased, with cases involving 51-60 year olds down by a fifth in 2019 when compared to the same period in the previous year and by 16% for 41-50 year olds.

The rise in adverse credit fraud could be as a result of a 191% recent surge in applications for basic bank accounts in 2019, as well as a 12% increase for current accounts.

Withholding information or lying about adverse credit on an application for a financial product is fraud, and could result in applicants finding it difficult to obtain future financial products, or possibly being reported to the police for investigation – potentially leading to a criminal conviction and a prison sentence.

Interestingly, research carried out by Cifas and WPI Economics earlier this year revealed that 7% of British adults have not declared adverse credit on applications, with 9% believing it was reasonable not to do so.

Mike Haley, CEO of Cifas, said: “Always be upfront about your financial situation and never attempt to hide your credit history when applying for loans or other financial products. Banks and building societies have sophisticated credit checking systems, and so there’s an extremely high chance that you will be found out if you lie on your application. If you’re found to have withheld information on an application for a financial product, then you’re committing fraud. Not only could this cause difficulties when applying for credit and financial products in the future, but it could result in more serious consequences such as a police investigation.”

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.

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