I recently returned from a holiday to find a credit card rejection letter in my post box but it was for a credit card I didn’t apply for. I checked my credit report and found several hard searches on there that weren’t caused by me. How could someone have got my information and what steps do I need to take to make sure they don’t keep applying for more credit?
Pete
Live reporter Katie Williams has taken a look at this one…
Sorry to hear you’re dealing with this after your holiday – it’s worrying to think someone may have got hold of your personal details without your knowledge.
It’s hard to pinpoint exactly how a fraudster may have obtained your information and it’s likely you’ll never find this out for sure.
Experian says six common ways include through data breaches, lost or stolen possessions, malware, unsecured browsing, phishing or card skimming.
Those details can then be used to either try and take over an account or open a new one.
One such attempt was unsuccessful, evidenced by the letter you received, but have you called all the banks involved to check whether any of the other hard searches related to successful applications? If not, you’ll want to do so – and quickly.
The lenders can then stop any spending that may be happening and start a fraud investigation.
Citizens Advice says it’s also advisable to contact the three main credit agencies – TransUnion, Equifax and Experian – to let them know you think you’ve been a victim of identity theft and tell them which accounts you did not apply for.
Make sure to keep a record of all conversations you have with the bank and credit agencies as well as copies of any letters they may send you.
It’s also a good idea to file an information report with Report Fraud (formerly Action Fraud).
Read consumer news and tips in the Money blog
How can I stop further credit applications?
There are several actions you can take to try and prevent further credit applications in your name.
A recommended move is to apply for protective registration with the fraud prevention service CIFAS.
This puts a warning flag against your name and other personal details in CIFAS’s national fraud database and tells organisations to pay special attention when your details are being used to apply for credit products or services.
This will ensure extra checks are carried out to make sure it’s really you applying and not a fraudster using your details.
It costs £30 for two years – but do be wary that the extra checks can lead to delays when making your own legitimate bank or credit account applications in this time.
Experian also offers a paid “Identity Plus” service through which you can lock your credit file, preventing unauthorised activity and sending alerts if someone tries to apply for credit in your name.
The £10.99-a-month service also uses monitoring technology to see if your details have appeared on the dark web.
You can enquire with other credit agencies about locking or “freezing” your file too.
Going forward, it’s probably also worth having a refresh of your online passwords, making sure you’re using different ones for different accounts.
Be wary of potential phishing emails, calls and texts, and make sure any post with your personal or financial details on is shredded before recycling.
Report Fraud also suggests checking your credit file regularly and following up if you spot any more entries you don’t recognise.
More from this series:
‘I’m worried my ex will force me to sell the house’
‘Do we have to tell buyers our home was burgled?’
‘Help! My number plate has been cloned’
Can the hard searches be removed?
It’s frustrating that in this case you’ve been left with several hard searches on your credit history in a short space of time.
If you were looking to borrow money anytime soon this could make lenders nervous – and it’s likely something you’d want to rectify anyway.
Contact those three agencies listed above and let them know the searches were not initiated by you, so that they can carry out an investigation.
If the investigation finds the inquiry was unauthorised, it will be removed from your report within four to six weeks.
If any credit applications were successful, it’s especially important to remove the credit card from your file in case the person who opened it creates a black mark on your history, through exceeding the limit or not keeping up with repayments, for example.
