Identity fraud: how to check and protect your credit history this holiday season
An account you never opened. Bills you never received. A default you only discover when applying for a loan.
Identity fraud can go unnoticed until it starts affecting your financial plans. Knowing how to check your credit reports – and when a credit ban may help – can put you in a better position to spot unfamiliar activity and respond.
When someone else’s debt becomes your problem
We’ve seen clients discover accounts they didn’t open only when they applied for finance.
In one industry case, a client’s stolen identity details were used to open a utility account in another state. The bills went unpaid, the debt was passed to a collection agency and a default appeared on the client’s credit report.
The client had done nothing wrong. Even so, the listing affected their borrowing options while the matter was investigated.
Resolving identity fraud can take time and cause considerable stress. Checking your credit reports can help you identify a problem before an important financial decision brings it to light.
What can your credit report tell you?
Your credit report records information about your credit history. Lenders generally check it when assessing applications for products such as home loans, car loans and credit cards.
It can include credit accounts, applications and enquiries, repayment history and defaults.
A default is more serious than an occasional late payment. For consumer credit, it generally involves an amount of at least $150 that is overdue by at least 60 days, with required notices issued before it can be listed.
If someone uses your identity to obtain credit or open certain service accounts, unfamiliar information may appear on your report.
Check your reports – even if you’re not applying for finance
You can request a free copy of your credit report from each credit reporting body once every three months.
Australia has two main credit reporting bodies: Equifax and Experian. They may hold different information, so checking both gives you a fuller picture. Experian’s report now includes information previously held by illion.
When reviewing your reports, look for:
- Accounts you don’t recognise.
- Credit applications or enquiries you didn’t make.
- Unfamiliar overdue amounts or defaults.
- Personal details or addresses that appear incorrect.
An unfamiliar entry doesn’t automatically mean fraud, but it is worth investigating.
Request your reports through the official Equifax and Experian websites, and choose the free credit report option.
Suspect identity fraud? A credit ban (also known as a credit freeze) may help
If you believe you have been, or are likely to be, affected by identity fraud, you can request a ban on your credit report.
A ban generally restricts access to your credit information, making fraudulent applications harder. It is free, initially lasts 21 days and can be extended if the risk continues. Supporting information may be required.
Ask for the ban to apply with both credit reporting bodies. You can request that one pass your request to the other.
A credit ban does not remove fraudulent accounts or defaults, and it does not prevent every form of identity misuse. You will still need to address any suspicious activity.
It may also delay your own finance application. Speak with the credit reporting body and your lender or broker about how to proceed.
What to do if something looks wrong
If you find an account, enquiry or default you don’t recognise:
- Call the company named on the report. Use contact details you have looked up yourself, and tell them you think someone may have used your identity.
- Ask them to investigate and fix it. If they don’t, raise it with the credit reporting body (Equifax, Experian or Illion). Keep copies of everything and note any reference numbers.
- Consider a credit ban. It’s a free lock on your credit file. Lenders who ask for your report are told there is a ban and the request is rejected. It lasts 21 days at first and can be extended for 12 months. You can ask one credit reporting body to pass the ban on to the other two.
- If money or personal details have been stolen, call your bank straight away. Report it to ReportCyber, and report scams to Scamwatch.
You do not need to wait until you apply for a loan to raise a concern.
Pause before sharing personal details
Credit checks can help reveal problems, but protecting your information matters too.
Be cautious about unexpected requests for identity documents, account details or verification codes—especially when someone pressures you to act urgently.
If a request appears to come from a trusted organisation, verify it through a phone number or website you find independently. Avoid relying on contact details or links supplied in the suspicious message.
Scams can be convincing. If you are affected, seeking help promptly matters more than blaming yourself.
Planning to apply for finance?
If you’ve found an unfamiliar entry on your credit report or have a credit ban in place, let your DPM Lending consultant know early.
We can help you understand the potential implications for your application and plan the next steps with you.
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Before acting on this information, you should carefully consider whether it is appropriate for your circumstances and seek professional advice.
DPM Lending Pty Ltd ACN 138 171 191, Australian Credit Licence 374850. Credit services are subject to lender terms and suitability assessment. DPM Lending provides credit assistance as a mortgage broker and is not a lender.
