A fraudster opened a Three mobile phone contract in my name… now my credit score is dropping

I recently became the victim of identity fraud, where someone took out three mobile subscriptions on the same day with Vodafone, ID Mobile and Three Mobile.

The contracts were in my name, but used the same fake bank details, which were not mine.

While I don’t pay for these contracts, I know that opening lots of new credit accounts can affect my credit score – not to mention the unpaid bills the fraudster could pocket.

I spent many hours on the phone with the mobile networks as well as credit reporting services Check My File, Experian and Equifax.

I am currently paying a number of subscriptions to these credit bureaus until this is resolved, which costs around £40 per month.

Vodafone resolved the issue in less than a week and the flags were removed from my credit file.

ID Mobile also eventually resolved it itself, albeit not before I received a collection letter.

But the Three Mobile account is still on my credit file and my credit has dropped by over 100 points since the beginning.

I contacted Three customer service five times and on March 17, 2023 I was told by a manager at the store that the contract has been suspended pending investigation.

This was repeated to me several times by customer service.

It has now been over 40 business days since this matter was raised with Three. I sleep badly and have trouble understanding why it takes so long. C.S, via email

Helen Kirrane from This is Money replies: I’m sorry you had to deal with this and had to chase Three to do something it should have handled quickly.

Being a victim of identity fraud is already an offense, but having it affect your credit score is all the more troubling.

You told me that you only found out you were a victim of fraud when you received a direct debit letter from one of the phone companies.

There had been no dodgy phone calls, texts or emails asking you to provide your details or make a questionable payment.

Vodafone and Three suggested the accounts were closed online, while ID mobile said the account was closed at a Currys store.

Many victims of identity fraud never find out how someone got their information, and cleaning up afterwards can be costly and stressful.

Unfortunately, you are not the only one who falls victim to this type of fraud. Britons lost a whopping £1.2bn to fraud by 2022, according to UK Finance – the equivalent of £2,300 per minute.

What I find most incredible is that the people who signed the contracts were able to use the same fake bank account information that didn’t belong to you to sign them all.

This raises the question of how these contracts could go through with fabricated bank details, and how they got through the checks once – let alone three times.

This sort of activity takes place, according to UK Finance, and the bank would not be notified until payments or direct debits had started.

The controls to prevent this type of fraud would be with the companies that issue the contracts. They could have done name and address checks to make sure the bank details were correct.

However, you took all the right steps during this nightmare. Once you realized that identity fraud had taken place, you spoke to numerous credit reference agencies to report the phone contracts you did not recognize.

Since I contacted Three about your case, it has assured me that the account has been closed effective immediately.

I was also told that your credit file is automatically updated.

The time frame for removing an account from a credit file depends on the process that the phone companies follow according to Experian. This means that it can take 24-48 hours, 7 days or even a month for it to be removed from your file.

James Jones, head of consumer affairs at Experian, one of the largest credit rating agencies, said: “Fraudulent accounts must be removed from the victim’s credit reports at all three credit reference agencies, although the timeframe for doing so will vary depending on the process the phone provider follows.

“Once removed, any scoring impact should end. It is prudent to check that any fraudulent bookings are correctly updated.’

Since you’ve recently been a victim of identity fraud, Experian recommends adding a notice of correction to your credit report.

This is a short statement that you can use to add more information to an entry on your credit report. For example, you can use it to explain what happened to the mobile phone companies and the contracts that have been made in your name.

Any lender who checks your credit report will see this statement and should take it into account when assessing your creditworthiness.

You should contact the other major credit reference agencies to ask them to add a notice of correction to the reports they have on you.

Because of what you went through, Three said it was reviewing its systems for handling these types of cases to prevent this from happening to others in the future.

A spokesperson for Three said: “We apologize for the difficulty CS experienced in closing this account.

“We encountered a problem processing the case, but have now closed the account effective immediately and CS’s credit file will be automatically adjusted.

“We will review our systems based on this experience to avoid a similar situation in the future.”

However, I still think Three could have done more to help you with this issue on one of the more than five occasions you tried to inquire about it.

It could have closed the account minutes after it was created, but instead it left you awake for weeks.

The fact that the two other mobile phone companies managed to close accounts opened by fraudsters within a week or so shows that Three could have done more and acted more quickly.

That being said, all cell phone companies are to blame for allowing people to sign a cell phone contract using fake bank details. Thorough checks should have been made against your name and address.