by Ho Lian-Yi

HE applied for a study loan and was angry when it was rejected. But a nastier surprise was in store when he tried to find out the reason for the rejection.

It seemed he was overdue in his payments for his overdraft account.

The shock: He had no idea he had an overdraft account or, for that matter, two credit card accounts in his name.

It was then that MrBenny Wong discovered that someone had used his particulars to open the three accounts illegally with United Overseas Bank (UOB), in July 2006.

The 28-year-old marketing executive found out about the accounts when he got a Credit Bureau report on 24 Jun, after his loan was rejected.

He called UOB immediately and a customer service officer confirmed he had active accounts with the bank.

Mr Wong has since made a police report.

Last month, he applied for a study loan of $17,000. When it was not approved, he said, he had to suspend his studies in a private school here for a bachelor's degree in business and marketing after two weeks of classes.

'I was quite angry and shocked,' he said. Explaining why he decided to get a credit report done, he said: 'If I hadn't done so, I might not have known till I'm 50 or lawyers come knocking on my door,' he said.

The Credit Bureau Singapore records all credit card payment behaviour, and helps credit providers make faster and more objective lending decisions.

You can get a copy of your credit report online, at a SingPost branch or directly at the bureau's office, for $5 plus GST.

Mr Wong believed the reason for the rejection of his loan application was the state of the overdraft account, for which the payment was many months overdue, according to the credit report.

Only one of the two credit card accounts saw some use. Strangely, a full payment was made on that.

But this wasn't his first experience with credit card fraud.

In December 2006, he received a lawyer's letter sent on behalf of Standard Chartered Bank. It said he owed the bank $1,355.

But he did not have an account with the bank. When he called Standard Chartered's fraud department, he was told someone had opened an account in his name.

He made a police report.

He said the name and IC number was his on the application form, but the picture and billing address were different.

A Standard Chartered spokesman said it waived the charges to his credit card account and made sure there was no negative impact from Standard Chartered on his credit bureau report.

Asked why he didn't apply for a credit report then, Mr Wong said: 'I was not aware (of such a facility), so I only filed a police report.'

This time, his private school advised him to get one after his failed loan application.

Mr Wong said he had no idea how this could have happened.

He said he had given his IC to a job recruitment agency to photocopy in 2006. He also took part in many lucky draws during that time.

Mr Ian Selbie, Unisys Practice Director for Secure Business Solutions for Asia-Pacific Financial Services, said banks are required to verify the identity of people who open accounts with them.

He said banks do carry out checks and monitor account behaviour.

However, as banks and customers get more sophisticated, and customers get less patient and expect a new credit account in just hours, 'fraudsters will take advantage of it'.

He added that surveys in the US had showed that it took a year on average before victims of financial fraud or identity theft realise they had been defrauded.

A UOB spokesman said Mr Wong's credit cards and loans were immediately blocked and cancelled after identifying that the credit card and personal loan applications were not legitimate.

'We would like to take this opportunity to remind the public not to disclose personal particulars to any third parties. This includes not providing any documents such as photocopy of NRIC, CPF statement, salary or income statements to any third parties as these may fall into the wrong hands,' she said.

The police confirmed that a report was made and investigations are on.

Guard against ID theft

Mr Ian Selbie, Unisys Practice Director for Secure Business Solutions, says you should:Destroy sensitive documents. Get your statements electronically. Lock your mailbox. Know when mail hasn't arrived.

• Check your account balances regularly.
• Choose a PIN or password that cannot be easily guessed.
• Always know who you are giving information to.
• Do not give sensitive documents (such as your IC) freely. If necessary, use other forms of photo ID such as membership cards.

How banks protect you from fraud

STANDARD CHARTERED

A spokesman said the bank takes a risk-based approach to prevent application fraud. The measures include verification of income, identity, credit bureau details and employment.

Tip: Document all contacts with institutions who ask you for personal information.

Make notes of everyone you speak with, noting down names, phone extensions and dates.

If you feel that something is amiss after speaking with them, call the department back to verify.

OCBC BANK

The bank recently saved some customers $10,000 with swift measures when they fell prey to a scam.

The creation of a Fraud Incident Response Team last year pools together specialists across the group.

But vigilance at individual level is also needed. Fraud usually occurs when people fail to keep their personal details confidential.

Tip: 'Vigilance and care are the two best defences against credit card fraud,' said Mr Roland Tan, OCBC's head of fraud management and cards authorisation.

This article was first published in The New Paper on July 12, 2008.