Fraudulent mobile phone contract in my name has left me with a default on my credit score

abirdonwire

Hi,
I'm looking for a bit of advice as I'm unsure of what to do next, and I would like my next move to be in my best interests.
I logged in to CheckMyFile today to discover that my previously good score of 831 had plummeted to 607. I was dumbfounded, I'd worked hard to build my credit and I'd been very careful.
Upon digging deeper I found a defaulted account from Virgin Mobile reported by Equifax for an account that was opened with them in November 2015 and payments that entered arrears, leading to eventual default in May 2019, for just a total of £18. I compared today's report with one that I'd saved from January. This defaulted account was nowhere to be seen. I know that I would have seen an adverse report long before now.
I discovered that this Virgin mobile contract was taken out from a previous address after I had moved, by a Mr using my name, when I am a Mrs. The corresponding account number does not match any of my records, as a Virgin Media customer. Therefore I can only conclude that someone has used my name and previous address to take out a mobile contract in my name and it has only just come to my attention.
CheckMyFile have suggested that I contact Virgin regarding the fraud and also Cifas to put a market on my account but the damage appears to be done. 
My question is, would it be better to fight Virgin to amend their report to Equifax and remove the defaulted account from my name or place a Notice of Correction on my file?
My husband and I hope to be able to apply for a mortgage later this year and this is a sudden and unexpected setback for us. I'm devastated that £18 on a defaulted account that I didn't even take out will affect out mortgage application until 2025.
Thanks very for much for reading and I hope that someone can offer some advice.

sourcrates

What can I do if I'm a victim of identity theft?

If you think you are a victim identity theft or fraud, act quickly to ensure you are not liable for any financial losses.

• Report all lost or stolen documents, such as passports, driving licences, credit cards and cheque books to the organisation that issued them.
• Inform your bank, building society and credit card company of any unusual transactions on your statement.
• Request a copy of your credit file to check for any suspicious credit applications.
• Report the theft of personal documents and suspicious credit applications to the police and ask for a crime reference number.
• Contact CIFAS (the UK’s Fraud Prevention Service) to apply for protective registration. Once you have registered you should be aware that CIFAS members will carry out extra checks to see when anyone, including you, applies for a financial service, such as a loan, using your address.
  
  CIFAS – The UK’s Fraud Prevention Service
  6th Floor
  Lynton House
  7 - 12 Tavistock Square
  London
  WC1H 9LT
  www.cifas.org.uk

You can also get more advice at:

• Action Fraud (England, Wales and Northern Ireland) or Police Scotland (as Action Fraud do not deal with people who live in Scotland).  

• Bank Safe Online
• Financial Ombudsman Service
• CardWatch c/o APACS
  Mercury House
  Triton Court
  14 Finsbury Square
  London
  EC2A 1LQ

MinuteNoodles

Much better to get it sorted as fraud and get Virgin to remove it. A CIFAS marker will scupper any chance of a mortgage.