What Is a First Party Fraud Marker?

A first party fraud marker means an organisation believes you personally committed fraud, rather than being a victim of someone else. This is distinct from third party fraud (where someone else used your identity) and facility takeover (where someone else accessed your account).

First party fraud markers are the most serious type because they allege that you, not someone else, were the fraudster. This makes the complaint approach different from cases where you can argue you were the victim.

Even when the institution alleges first party fraud, the burden of proof remains on them. They must demonstrate that you acted dishonestly and that their evidence meets the CIFAS filing standard. Common successful challenges include demonstrating that information was actually accurate, that a third party was responsible, that the institution misinterpreted the evidence, or that the marker is disproportionate to the circumstances.

Even where the institution alleges first party fraud, the burden of proof remains on them. They must demonstrate that you acted dishonestly and that their evidence meets the Ivey test: conduct that ordinary decent people would consider dishonest given all the circumstances.

Common successful challenges include demonstrating that information provided was actually accurate and that the institution misinterpreted it; that a third party, such as a broker or intermediary, was responsible for any false information; that the conduct was a mistake or poor judgement rather than dishonesty; and that the marker is disproportionate to what actually occurred.