Understanding application fraud markers

An application fraud marker (False Application under CIFAS categories) is filed when an organisation believes false information was used in an application for a financial product. This can cover a wide range of situations from alleged income fraud to document alteration.

Around 8,500 False Application markers are recorded on the NFD each year, making it the fourth most common category.

Common triggers

• Income stated on application does not match verification checks
• Employment details cannot be confirmed
• Documents submitted appear altered or fabricated
• Application details inconsistent with credit reference data
• Broker or third party submitted incorrect information
• Address history discrepancies

The broker factor

A significant number of False Application markers involve applications prepared by brokers, dealers, or other intermediaries. In these cases, the customer may have had no knowledge that the information submitted was false. The CIFAS standard requires evidence of dishonesty — and if a third party prepared the application without your knowledge of the false information, the dishonesty element may not be met.