Found a Fraudulent Account on Your Credit Report? Start Here

Finding a credit account you never opened can be alarming. The situation becomes even more serious when the account has generated enquiries, debt or a default under your name.

If you believe someone has used your personal information to obtain credit, acting promptly is important.

The first priority is protecting your credit file from further fraudulent applications.

Under the Privacy Act 1988, you can request a ban on your credit file. A ban prevents credit reporting bodies from disclosing your credit information to lenders for new credit applications. The initial ban lasts for 21 days, and an extension can be requested if the risk remains.

Consider placing the ban with the relevant credit reporting bodies as soon as possible when identity theft is suspected.

The next step is contacting IDCARE.

IDCARE is Australia's national identity and cyber support service. It provides specialist support for people dealing with identity theft and can help navigate the reporting and recovery process.

You should also report the suspected identity theft to police.

A police report can provide important supporting evidence when you contact lenders and credit reporting bodies. Keep the report number and copies of relevant documentation.

Do not stop there.

Contact your bank and any lender whose accounts or credit products appear on your report. Explain that you believe the account was opened fraudulently and provide your police report information where appropriate.

Then obtain your full credit reports.

Checking both Equifax and Experian is important because the information held by each credit reporting body may not be identical. Review the reports carefully and make a list of every entry that you did not authorise.

That list becomes useful when making fraud reports and communicating with lenders.

There is also a crucial difference between reporting identity theft and disputing an ordinary credit error.

With a standard credit-reporting dispute, you may be challenging information about your own credit activity because it is inaccurate.

Identity theft is different. The credit activity belongs to someone else who has used your identity.

When contacting a credit reporting body, clearly state that you are reporting identity theft or fraudulent listings. Providing supporting information such as a police report, identification documents and other relevant evidence can help establish the nature of the complaint.

The investigation process can take time, particularly when several lenders and fraudulent accounts are involved.

Keep records throughout the process.

Save correspondence, reference numbers, police reports and responses from lenders and credit reporting bodies. If fraudulent information is removed, obtain written confirmation and check your updated credit reports to make sure the corrections have actually been made.

It is also worth checking the reports again after the first round of corrections.

Identity theft can involve multiple accounts or enquiries, and additional fraudulent activity may have appeared before protective measures were put in place.

Once the fraudulent information has been addressed, continue monitoring the file. A credit file ban can also be renewed if continued protection is appropriate.

If you discover unfamiliar accounts or defaults and are unsure whether they are connected to identity theft, a mixed file or another type of credit-reporting problem, Identity Theft on Your Credit File: What to Do in Australia explains the different situations and the steps involved in responding to suspected fraud.

The key is not to treat a suspected identity theft case as an ordinary credit error.

Protect the file. Report the fraud. Document everything. Then verify that the fraudulent information has been corrected.

This information is general educational information only and is not financial or legal advice. If you believe you are a victim of identity theft, consider contacting IDCARE and reporting the matter to police as a priority.

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