Identity fraud up 40%

by Gill Montia

Story link: Identity fraud up 40%

CIFAS has reported a steep rise in identity fraud during the first quarter of 2009.

Research from the UK’s Fraud Prevention Service revealed a 40% year-on-year increase in the number of people being impersonated.

The body describes the trend as “an unwelcome return of identity fraud as the fraudsters’ method of choice”.

In addition, facility takeover fraud, where a criminal gains access to and plunders the accounts of innocent victims, continued to rise during the first three months of the year alongside a “surge” in fraudulent insurance claims.

Facility takeover fraud saw a “staggering” 75% increase, continuing “the steep upward trend seen throughout 2008″, whereas the level of identity fraud remained flat during last year.

In the area of insurance fraud, CIFAS said its figures (based on confirmed frauds that satisfy a burden of proof) are in line with the 40% surge already recorded by insurers.

The Service notes that “economic slowdown and rises in fraud go hand in hand”.

However, communications manager, Richard Hurley, adds: “With the alarming rise in identity fraud, we are faced with the possibility of a ‘chicken or egg’ situation: are these increases caused by – or uncovered by – the recession, as lenders and other businesses look even more closely at their existing books?”

CIFAS has over 260 member organisations spread across the banking, credit card, asset finance, retail credit, mail order, insurance, investment management, telecommunications, factoring and share dealing industries.