In today’s world, the ability to obtain credit from lenders or credit card companies and to open accounts with a range of providers, including mobile operators, is something we’ve come to rely on as part of our normal daily lives. It’s so common that we often take it for granted. But what happens if your credit or loan application is abruptly turned down for no apparent reason?

It could well be that you have become an unwitting victim of identity theft. If so, you won’t be alone. Identity fraud is a growing menace in the UK with reported cases up by 15% in the first half of 2024 compared to the same period for 2023 and for 64% of cases reported to the National Fraud Database (NFD).

Steps to repair your credit score after identity theft

How can you tell if you’ve been a victim of identity theft and what can you do to repair your creditworthiness once it happens?

1. Check your credit report

Review your credit report for unfamiliar loans, accounts, credit cards, or judgments.

2. Contact the lenders that have fraudulent charges or accounts in your name

Once you have identified loans, credit cards, bank accounts that have been fraudulently obtained using your name, you need to contact the lenders affected to inform them you have been the victim of identity theft.

3. Add a password in the form of Notice of Correction to your credit report

To prevent identity thieves from opening any more accounts in your name, add a password nobody else would know or could guess. If a fraudster applies for credit in your name, the lender should request this password before opening a credit account.

4. Apply for protective registration

Consider contacting CIFAS (the UK’s Fraud Prevention Service) to apply for protective registration. Once you’ve registered and paid the £20 fee, CIFAS members will carry out extra checks to see when anyone, including you, applies for a financial service, such as a loan, using your address.

5. Update your passwords for all affected accounts

It’s important to change passwords on all affected accounts and close any unauthorized ones. Keep a record of the cancellations.

6. Consider identity theft insurance

Identity theft insurance does not cover direct financial losses you may incur as a result of identity theft, but many insurance companies will provide cover for the cost of reinstating your identity, including legal fees, phone calls and taking time off work to deal with the fraud.

How Norton can help

It’s important to understand how vital your credit score is when trying to get a loan or any other form of credit. Many of us don’t pay enough attention to our credit scores and we don’t check our credit reports as often as we should, which could leave us vulnerable to bad credit decisions based on mistaken information or the actions of fraudsters. With Norton Benefit Solutions, we offer solutions that let you keep tabs on your financial health and get alerted when there are major changes to your credit report.

Learn more about your credit score on uk.Norton.com .

Norton Benefit Solutions offers a digital wellness benefit that helps empower employees with protection for their identity, devices, and online privacy.