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Hopewiser is helping in the fight against fraud which is costing the financial services industry over £500 million a year. They are providing the key address management software being used to ensure a unique finance industry wide database of over 300,000 names and addresses is continually up-to-date and accurate. "Accuracy is important in any database. But as far as our database is concerned it is vital in helping us to fight the ever-growing problem of fraud", says Hugh Norton-Amor, Deputy Chief Executive of CIFAS.
CIFAS was originally founded by a number of major companies in the consumer credit industry.
Today its 240 different members also cover telecommunications, insurance, share dealing and the commercial credit industry. Its objectives: - To protect members from being defrauded by pooling information on fraud and attempted fraud.
- To ensure innocent members of the public who are the victims of fraud are not prejudiced by the misuse of their identities and documentation.
- To expand crime prevention data sharing to encompass both the Private and Public sectors in the public interest.
It is the biggest anti-fraud organisation of its kind in Europe.
"Everybody has a vested interest in fighting fraud", says CIFAS. "A householder increases his insurance claim more than he should. We all end up paying higher premiums. A shopper cheats a shop or a department store. We end up paying higher prices. A consumer uses somebody else's credit card or cheque book. We end up paying higher charges."
CIFAS is not only interested in fighting smaller frauds. They are also fighting large-scale, highly organised fraud.
"Big or small, fraud is wrong", according to CIFAS. "We must do everything we can to keep it to the absolute minimum."
Key to their operation is FIND, their new Fraud Investigation Database, designed and developed by LogicaCMG to include Hopewiser.
"If one of our members becomes suspicious they notify the Database and addresses are checked. Information is then transferred to the credit reference agencies and others that participate in CIFAS. Any member receiving a warning from the Agencies, accesses the database for further information."
"In certain circumstances the police will also be informed by the member", says CIFAS.
Their success to date. Impressive. Over the last 10 years, members estimate they have saved a staggering £1,438 million from exchanging information through CIFAS.
In the first half of this year alone they identified over 155,000 frauds, issued 2.2 million warnings and helped save the industry £213 million.
In addition to operating their database CIFAS also provide a number of other services both to the industry as well as to consumers. One of them, called Protective Registration, is available to people who have had personal documentation, including credit cards, stolen.
Mr Norton-Amor said before they decided to use Hopewiser software a number of address management companies had been approached.
Hopewiser had been selected because "they were very quick, very accurate. They are helping to give us the accuracy that we need."
He also said the software had worked smoothly from the start. "There have been no problems, no breakdowns. When there were one or two queries, Hopewiser were always there. They were very friendly, very helpful." How CIFAS works 9.30am - Member 'A' receives an application and identifies fraud - files name, address (123 High Street, Anytown), CIFAS category and their own case number on-line to the CIFAS database. 10.30am - Other Agencies updated with details - CIFAS warning now 'live' on all databases. 1.30pm - Member 'B' receives an application involving the same address (123 High Street, Anytown), searches that address and 'matches' the Member 'A' information. 1.45pm - Member 'B' seeks further details about the fraud filed by Member 'A'. This involves further database checks and, on occasion, direct contact with Member 'A'. 2.00pm - Member 'B' assesses the application. A thorough investigation is undertaken. As much of the information is verified with third parties as possible. If it is fraudulent, the Member categorises and re-files the name and address on the CIFAS database as a fresh fraud but if it is not fraudulent, the normal account opening process continues.
David England created 28 identities for himself around the UK. He sat 28 driving tests in various names at different test centres to obtain 28 full driving licences.
Using these and a variety of rented addresses where he registered on the electoral roll, he opened multiple bank accounts, cycling money from one to another for several years to build up a transaction history and appear as if he was a good customer.
Once he qualified to receive offers of credit cards, loans etc. he started to apply for them all, using every possible combination of name and address he could.
But for one CIFAS member he would have got away with it.
This particular member noticed all the credits to their account came from one bank and all the debits went to another bank.
This was very suspicious so they issued a CIFAS Security Alert to ask other Members to check if they had any suspicious accounts at the addresses concerned.
There were so many responses that the Police were immediately asked to intervene and David England was arrested as he was about to leave the UK. He was prosecuted and sentenced to five years in prison.
The police recovered almost half of the £1 million he had defrauded from banks and credit card companies.
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