Upheld: unauthorized account opening and Cifas marker recording complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Ms H complained that Clydesdale Bank Plc trading as Virgin Money opened an account in her name without her knowledge and recorded a Cifas marker against her. An account was opened on 11 April 2022 using Ms H's personal details and identity verification including a driving licence and live video. Fraudulent payment attempts were made to the account in April 2022, and Virgin Money recorded a Cifas 'misuse of facility' marker in October 2022. The ombudsman found it more likely than not that Ms H opened the account herself based on matching photographs and her personal details, and that Virgin Money was justified in recording the Cifas marker given the fraudulent activity. However, the ombudsman upheld the complaint because the marker should have been recorded in May 2022 rather than October 2022, and ordered it to be backdated accordingly.

The Ombudsman's reasoning

The ombudsman found it more likely than not that Ms H opened the account herself based on: (1) her personal details being correctly provided; (2) still images from the live video matching her driving licence photo; and (3) the device name being associated with her. Although Ms H lost her driving licence, this was not replaced until after the account opening, making it unlikely this was the point of compromise. The ombudsman concluded Virgin Money had reasonable grounds to record the Cifas marker given the fraudulent payment attempts. However, the six-month delay in recording the marker (from April to October 2022) was unreasonable, and it should have been recorded approximately one month after the fraud reports were received.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website