The National Fraud Database (NFD) is not just a record-keeping system. It is an active tool used daily by banks, lenders, insurers, telecom providers, and public sector bodies to assess applications and manage risk.
Whenever you apply for a financial product or service, the organisation may run a search of the NFD. If a CIFAS marker appears, it will influence how your application is handled.
How Organisations Use CIFAS Data #
- Application Screening
- When you apply for a bank account, loan, mortgage, or insurance policy, the provider checks the NFD.
- If a marker is found, the application may be refused automatically.
- Account Monitoring
- Existing accounts may be reviewed if suspicious activity is detected.
- If an account holder has a CIFAS marker elsewhere, their bank may close or restrict their accounts.
- Fraud Prevention
- Markers are used to prevent repeat fraud, protecting organisations from financial losses.
- In 2024, CIFAS members reported saving over £2.1 billion by using shared NFD intelligence.
- Employment Screening
- Some employers in regulated industries (finance, law, security) use CIFAS checks during recruitment.
- A marker can therefore affect job applications or professional licensing.
The Importance of Proportionality #
While organisations have the right to protect themselves against fraud, they must also comply with the CIFAS Principles and data protection law:
- Markers must be used proportionately — for example, a minor case of account misuse should not automatically exclude someone from all financial services for six years.
- Decisions must be fair and transparent — organisations must be able to explain how the marker was used in their decision-making.
Why This Matters for You #
If you have a CIFAS marker, every member organisation that searches your record can see it. This explains why you may suddenly find multiple applications refused, even outside the organisation that originally filed the marker.
However, organisations must not misuse CIFAS data. If a decision seems disproportionate or unfair, you have the right to challenge both the organisation and the marker itself.
