CIFAS Markers Explained: Causes, Consequences, and Solutions

A CIFAS marker is a record placed by CIFAS, the UK’s fraud prevention service, to alert financial institutions about potential fraud risks associated with an individual. While these markers are instrumental in combating fraud, they can sometimes be applied incorrectly, resulting in significant consequences for the affected individual. 

If you suspect that a CIFAS marker has been wrongly applied to your name or want to understand the process for its removal, this article provides an overview of the key steps and legal considerations involved. 

Why Might a CIFAS Marker Be Placed Against You? 

CIFAS markers are usually applied in response to suspicious activity or evidence suggesting potential fraud. Common reasons include: 

• Suspicious behaviour during transactions or account openings 

• Evidence of involvement in fraudulent activities 

• Use of fake or misleading documents 

• Discrepancies in information provided to financial institutions 

Unfortunately, innocent individuals can sometimes be flagged due to misunderstandings, clerical errors, or insufficient evidence. 

Types of CIFAS Markers and Their Implications 

There are several categories of CIFAS markers, each with its own criteria and implications, including how long they will last on your record. The most common include: 

• Victim of Impersonation: Indicates that a fraudster has impersonated someone. This marker lasts for 13 months. 

• First Party Fraud: Applied when there’s suspicion of involvement in fraudulent activity. This marker remains for up to six years. 

• Facility Takeover: Highlights that an account or service has been taken over fraudulently. This lasts up to six years. 

• Misuse of Facility: Suggests improper use of an account, such as for money laundering. This lasts up to six years. 

• Protective Registration: A marker requested by individuals who believe they are at risk of fraud. It lasts for two years. 

• Asset Conversion: Often related to fraudulent vehicle dealings, lasting up to six years. 

• Insurance Claims Fraud: Applied when false information is provided in insurance claims, lasting up to six years. 

The presence of a CIFAS marker can impact your ability to: 

• Open a new bank account 

• Apply for loans or obtain credit 

• Take out insurance policies 

• Pass background checks, whether for employment or other purposes 

How Can I Check If I Have a CIFAS Marker? 

You can determine if you have a CIFAS marker by submitting a Data Subject Access Request (DSAR). Under data protection laws, CIFAS is obligated to disclose any personal information they hold about you, including details of any markers. A DSAR can be submitted via the CIFAS website. 

What Should I Do If I Believe a CIFAS Marker Has Been Wrongly Applied? 

If you suspect that a CIFAS marker has been unfairly placed on your record, the following steps can help: 

• Obtain Details: Submit a DSAR to review the details of the marker and understand the reasons for its application. 

• Contact the Financial Institution: Engage with the institution responsible for placing the marker. Request clarification, supporting evidence, and an explanation of their decision. 

• Challenge the Marker: If you believe the marker is unwarranted, present evidence to refute the claims. Address any inaccuracies or misunderstandings. 

• Escalate to CIFAS: If the financial institution refuses to remove the marker, escalate your complaint to CIFAS for an independent review. 

Can a CIFAS Marker Be Legally Removed? 

Yes, a CIFAS marker can be removed if it was incorrectly applied or if you can provide evidence disproving the concerns of fraud. If the institution that placed the marker refuses to remove it, you can escalate the matter further by: 

• Appealing to CIFAS directly 

• Lodging a complaint with the Financial Ombudsman Service 

Can a Solicitor Assist With Removing a CIFAS Marker? 

Seeking legal advice is highly recommended, particularly in complex or disputed cases. A solicitor can help ensure your case is presented effectively from the outset, increasing the likelihood of a favourable outcome. 

Conclusion 

A CIFAS marker can significantly affect your financial freedom and opportunities. If you suspect that a marker has been wrongly applied, it is crucial to act quickly to review, challenge, and appeal the decision. Understanding your rights and obtaining professional legal support can greatly enhance your chances of successfully removing the marker. 

If you need advice or assistance in addressing a wrongly applied CIFAS marker, please contact Partner Jonathan Chan at J.Chan@rfblegal.co.uk.