What does the error "INQUIRY INFORMATION IDENTIFIED AS FRAUDULENT BY CONSUMER – REPORT NOT AVAILABLE" mean?
A: This message indicates that the credit bureau has identified the consumer's credit file as being subject to a fraud alert, identity theft claim, or security restriction that prevents a credit report from being released through the standard inquiry process. The bureau is intentionally blocking access to protect the consumer from potential unauthorized use of their personal information.
This response does not necessarily indicate fraud by the requesting lender or mortgage company. Rather, it indicates the bureau requires additional verification before releasing the consumer's credit information.
Common Reasons for this Response
- Identity Theft Reported by the Consumer
The consumer has notified the credit bureau that they are a victim of identity theft, resulting in additional restrictions being placed on their credit file. - Active Fraud Alert or Extended Fraud Alert
The consumer has placed a fraud alert on their credit file requiring creditors to verify their identity before extending credit or releasing a report. - Security Freeze or File Protection
The consumer has implemented a security freeze or other protective service that restricts access to their credit file. (Depending on bureau procedures, some freezes return a different message.) - Fraudulent Inquiry Previously Reported
The consumer has disputed one or more prior inquiries as unauthorized, causing the bureau to apply heightened security measures to future inquiries. - Identity Verification Could Not Be Completed
The bureau was unable to confidently authenticate the consumer based on the identifying information submitted and therefore withheld the report. - Bureau Security Review
The credit bureau has flagged the file for additional review due to suspected fraudulent activity or unusual account behavior.
What Should a Mortgage Professional Do?
If this response is received, the following steps are recommended:
- Do not repeatedly submit additional credit requests, as repeated inquiries will generally not resolve the issue.
- Contact the consumer immediately and advise them that the credit bureau requires additional identity verification before their credit report can be released.
- Verify the consumer's identifying information, including legal name, Social Security Number, date of birth, and current address.
- Ask the consumer if they have placed a fraud alert or security freeze on their credit file or if they have recently reported identity theft.
- Instruct the consumer to contact the affected credit bureau directly to verify their identity, temporarily lift any applicable security freeze (if appropriate), or resolve the fraud restriction.
- Repull the credit report only after the consumer confirms the restriction has been resolved or lifted.
For more information, please contact support@kcbcredit.com