WIREDGOV

As part of the National Fraud Initiative (NFI), the Audit Commission is launching a pilot scheme to help UK banks and credit providers identify fraudulent applications by immigration offenders.

Through the NFI run by the Audit Commission the UK Border Agency will share information in ‘real time’ with financial institutions. Each year the UK Border Agency processes around 3.5 million applications to visit, live, work or study in the UK. The aim is to prevent those with no right to stay or work in the UK from accessing financial services. In return, financial institutions will provide the Agency with information on where illegal working and employment is taking place, supporting the Agency’s work in tackling immigration crime.

Identifying immigration offenders in the UK will protect banks from fraudulent applications, for example stopping mortgages being granted to people with no right to work in the UK and therefore no means to repay loans. It will also make it more difficult for organised foreign criminal gangs to defraud banks by making bogus credit applications.

Since NFI counter-fraud work began 15 years ago, it has helped to identify fraud and overpayments worth over £750 million. The launch of a real time data matching service is a powerful new addition to NFI. Sitting alongside the established data matching work, this new instant matching facility will help participants to target fraud more effectively. Data from around 1,300 organisations – including councils, the police, hospitals and nearly 100 private companies – is held in the Audit Commission’s NFI database.

Allowing financial institutions and credit agencies to easily check any applicant’s right to live or work in the UK represents phase one of an NFI service expansion. But there are many other sectors where NFI real time matching can bring clear and significant benefits. The Audit Commission is currently talking to other interested parties.

Welcoming the development the UK Border Agency’s Intelligence Director, Martin Peach said:

“UKBA will always seek to remove those who are here illegally or have breached the conditions of their leave. Preventing immigration offenders from fraudulently accessing credit is a boost to tackling illegal immigration. If we can prevent them from enjoying the benefits of life in the UK we make it less attractive for them to remain here illegally, and less attractive for others to overstay their welcome or enter the country illegally.”

The Audit Commission’s MD of Audit Policy, Martin Evans said:

“This ability to match to UK Border Agency data instantly is an exciting extension of NFI’s ability to uncover fraud. I’m sure it will appeal to banks and other money lending agencies, which will now be able to check the latest information on a person’s immigration status in ‘real time’. By helping to speed up verifying credit applications, the new real time service is good for both the financial institutions and their customers.”

Financial institutions are being offered a free month’s trial, after which they can choose to subscribe to the service annually. There is more information at http://www.audit-commission.gov.uk/fraud/nfi/private-sector/services/real-time/Pages/Default.aspx . Email enquiries to nfiqueries@audit-commission.gov.uk and by phone to 0844 798 2222 (local rate call).

Notes to editors

1. The NFI is a secure web-based system that uses the same computer architecture as online banking. The Audit Commission provides the NFI through powers under the Audit Commission Act 1998, and it complies fully with the Data Protection Act 1998.
2. The UK Border Agency is the law enforcement body charged with securing the UK border and controlling migration.
3. The Audit Commission is a public corporation set up in 1983 to protect the public purse.
4. The Commission appoints auditors to councils, NHS bodies (excluding NHS Foundation trusts), police authorities and other local public services in England, and oversees their work.
5. We also help public bodies manage the financial challenges they face by providing authoritative, unbiased, evidence-based analysis and advice.
6. In August 2010, the government announced plans to disband the Audit Commission and put in place new arrangements for auditing England's local public bodies.
7. The Commission is undertaking a procurement exercise to outsource the work of its in-house Audit Practice. Beginning in 2012/13, the Commission will award contracts of three to five years to private audit firms.
8. The government is currently considering responses to its consultation on the ‘future arrangements for local public audit’ that are intended to replace the Audit Commission. The National Fraud Initiative is expected to be continued in a successor organisation.

For more information please contact:

Mark Nicholson
Media Relations Manager, Audit Commission
Millbank Tower, London SW1P 4HQ
Direct line 0844 798 2135 / 0207 166 2135
24hr Press line 0844 798 2128 Mobile 07813 038132
E-mail m-nicholson@audit-commission.gov.uk

or the Home Office Press Office 020 7035 3535.