Application fraud

When an account is opened using fake or stolen documents in your name, using the account to withdraw cash, get credit, or find other ways to defraud you. Woman checking online bank account using a mobile and holding a credit card. What is application fraud? If you’ve been a victim of identity theft you can become a victim of application fraud; your details are stolen and used to open up a new account in your name. Fake accounts are usually opened with banks or with credit card companies as a quick way of accessing funds using the victim’s details. But fraudsters can also use details to open accounts elsewhere, such as a mobile phone contract which is then billed in the victim’s name. Application fraud is different from your account being taken over. In this case, criminals use details to start completely new accounts, whereas a takeover uses accounts that the victim had set up themselves. The difference is that victims may be completely unaware of application fraud, as the account was opened without their knowledge. What application fraud can also look like: You get letters or emails confirming new cards or loans you didn’t apply for. You’re paying for a subscription or direct debit you don’t recognise, such as a contract for a mobile phone you don't own. How to protect yourself from application fraud It’s important to recognise that a fraud can come from anywhere, including: staff members customers suppliers third parties, unconnected to the business We can’t provide a single solution to prevent all business fraud, but the information here will help you identify the most common types and take action to protect yourself, your staff and your business. Some of the areas covered in this advice include: 1. Being sceptical Have processes in place to properly audit and scrutinise all transactions to protect your organisation against fraud. 2. Know your business Have a thorough understanding of your business so you know how it works, and also when something isn’t working. 3. Knowing your customers and suppliers When you understand who you do business with you can spot any business request or transaction that looks incorrect for that customer or supplier and may be fraudulent. Conduct due diligence using a risk-based approach, such as checking the customer or supplier details you have on file, as well as online searches. 4. Identify areas where your business may be vulnerable to fraud and develop strategies to deal with them Imagine how a fraudster might target your business, both internally and externally, and test the systems you already use to reduce risk. Think about the right fraud prevention and detection strategy for your business: it should detail controls and procedures. Due diligence: you should consider due diligence on applications for credit or finance agreements to prevent losing money to fraud. Credit indices or the protective register available to CIFAS members are useful tools in validating applications www.cifas.org For more information, please visit: Business fraud and how to prevent it | City of London Police Elderly couple sat on a sofa with victim support work What to do if you are a victim of application fraud If you have made a payment: Inform your bank as soon as possible, they can help you prevent any further losses. Monitor your bank statements regularly for any unusual activity. You could be targeted again: Fraudsters sometimes re-establish contact with previous victims claiming that they can help them recover lost money, this is just a secondary scam. Hang up on any callers that claim they can get your money back for you.