Insights for consumers
If your personal information is used to fraudulently open accounts, contact the financial service providers involved to:
- determine how your details were used
- ensure fraudulent accounts are closed
- check that records clearly show that the account was opened illegitimately.
Be aware that there may be limits on what information can be shared with you, or deleted, even if the account is in your name.
Financial service providers are often required by law to retain certain records. Compliance with anti-money laundering and countering the financing of terrorism obligations, as well as monitoring fraudulent account activity, can prevent deleting all account information. Privacy rules also restrict how, and with whom, details can be shared.
Providers should be able to confirm to customers whose details have been used to open fraudulent accounts:
- if the accounts have been closed
- that their files clearly note the identity theft
- that it will not affect their credit record.
What happened?
Finance checks reveal fraudulent accounts
When applying for finance from a card provider, Dan* discovered that several accounts had been opened in his name that he knew nothing about. He suspected identity and credit checks had been conducted on him for illegitimate purposes. He was not sure whether any of the accounts were still open or in use.
Dan seeks information from the account providers
Dan contacted the providers involved to report the fraudulent activity and find out how his information had been used. He also wanted confirmation that:
- the accounts were closed
- his information was deleted
- his credit record was not affected.
Hitting a wall with a provider
One of the providers told Dan that they could not disclose all the account details or delete his information. Worried that misinformation could be held about him that could affect him in the future, Dan took his complaint to Financial Services Complaints Limited (FSCL).
FSCL reviews account information
FSCL worked with the card provider to clarify what information they held about Dan.
Privacy rules vs. consumer rights
The card provider explained that they could share some details, but privacy laws prohibited them from disclosing third-party information. They also explained that legal obligations required them to retain certain records, including the fraudulent use of Dan’s information.
FSCL agreed that both legal and privacy requirements applied in this situation.
Provider offers assurances
FSCL obtained confirmations from the card provider that:
- the account had been closed
- records clearly outline that the account was fraudulently opened in Dan’s name
- Dan’s credit record was not negatively affected.
Outcome of the investigation
Satisfied with these assurances and now understanding why some information had to be retained, Dan discontinued his complaint.
