Guide section
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.
Guide section
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
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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.
Important distinction
The marker should be filed against the party responsible for the false information, not necessarily the applicant. If a broker falsified your income figures, the marker belongs against the broker.
Guide section
How to challenge an application fraud marker
Where information on an application was actually accurate, the challenge should present that evidence directly and ask the institution to identify which specific information they believe was false and on what basis.
Where a broker or intermediary submitted false information without your knowledge, the marker belongs against the party responsible for the false information, not the applicant. This requires evidence that you provided accurate information and that any inaccuracy was introduced by a third party without your knowledge or instruction.