Credit report signs you’re a victim of fraud
VICKY SHAW highlights how to spot if a fraudster has been using your identity
Many people regularly check their credit report to see how lenders might view them but they can also show the warning signs you might have been the victim of identity fraud.
Criminals are constantly trying to harvest personal information online whether by tricking us into giving details such as passwords and date of birth, or through data breaches. They may then take out credit and run up debts in our names.
So how can you avoid these scams, or at least become aware of them as soon as possible?
Varun Khanna, head of customer experience for Equifax UK (equifax.co. uk), says: “If you receive an unexpected email, call, or text that doesn’t feel right, it’s important you close down this communication immediately. If this attempted contact has come from the name of a known business or friend, contact them through a number or online service you are sure belongs to them.”
Regularly checking reports from credit reference agencies might also
help you to spot loan agreements you don’t recognise. Equifax recommends keeping an eye out for two things – hard searches by lenders and late payments.
A hard search will appear when a company believes you have given them access to your credit information, meaning when a fraudster applies for new credit using your details, this activity will often leave a “footprint”.
Even if the application is rejected, this can still have a negative effect on your credit history, as each application for credit is recorded. Such action could cause a dip in your credit report for up to a year.
When it comes to late payments, if a credit card you rarely use is lost or stolen, you may not immediately realise if a fraudster starts to use it.
This can result in a build-up of unpaid bills and late payments being reported to credit bureaus, causing a significant dip in your credit score that will negatively impact your own ability to take out credit.
Your card provider will hopefully send you emails and statements, alerting you to upcoming unexpected payments. Credit reference agencies will also let customers know if there have been significant changes to their credit information.
If you see a search or late payment you don’t recognise, contact the company involved or your credit reference agency directly, to get help with resolving the issue as soon as possible.
Varun suggests other ways to minimise the risk of having your identity stolen include keeping the amount of personal information posted on social media to a minimum. Dates of birth, information indicating addresses and mothers’ maiden names can be particularly useful to identity thieves.
If you think you have been the victim of an identity fraud, tell your bank or card provider as soon as possible and notify Action Fraud (actionfraud. police.uk).