Hit by Identity Theft or Account Fraud? Your Rights and How to Recover (UK)

Discovering that a fraudster has opened accounts in your name, or taken over your own, is alarming — but UK rules protect you, and most victims recover fully. Speed and the right paper trail are everything. Here is what to do.

You are generally not liable for fraud you didn't authorise

For unauthorised transactions on your account (payments you did not make or approve), your bank must normally refund you — usually by the end of the next business day — unless they can show you acted fraudulently or with gross negligence. Accounts opened in your name by a fraudster are not your debts, and you should not be pursued for them.

Act fast — the first 48 hours

1. Contact the affected banks/lenders immediately to freeze accounts and report the fraud.
2. Report to Action Fraud (or Police Scotland) and keep the crime reference.
3. Check your credit file at all three agencies for accounts and searches you don't recognise.
4. Apply for protective registration with Cifas, which flags your identity to lenders so new applications get extra checks.

Clearing fraudulent debts and credit-file marks

Write to each lender that opened a fraudulent account, stating it was identity theft and enclosing your Action Fraud reference. They must investigate and remove the account and any associated default or search from your credit file. If they refuse, escalate to the Financial Ombudsman Service, and complain to the ICO about inaccurate data.

A letter template

Dear [Bank / Lender],

Re: Identity theft / account fraud — [account or reference]

The account/transactions [described] were not opened or authorised by me; I am a
victim of identity theft (Action Fraud reference [number]). Please treat this as
fraud, refund any unauthorised payments, close the fraudulent account, and remove
all related entries from my credit file with the three reference agencies.

Please confirm in writing within [reasonable period]. If unresolved, I will refer
the matter to the Financial Ombudsman Service.

Yours faithfully,
[Your name and contact details]

Move quickly, report to Action Fraud, register with Cifas, and put every demand in writing. The law puts the loss on the bank for unauthorised activity — your job is to evidence that it was not you.