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Identity fraudsters are increasingly targeting sectors such as telecoms, online retail, retail credit loans, short-term loans and insurance, according to a new report.
Editor at Credit Strategy. Previously held roles at Accountancy Age, Accountancy Daily and the Leicester Mercury.
The nearly 175,000 recorded cases represented only a one percent increase compared with 2016, but a 125 percent increase compared with 10 years ago, fraud-prevention organisation Cifas found.
The profile of the frauds, however, changed substantially year-to-year, with fraudsters focusing their efforts on more accessible products, such as mobile phone contracts, online retail accounts, retail credit loans and short-term loans.
These products are less likely to be subject to the stringent credit checking of bank accounts and credit cards. The fraudster is more likely to find that the victim of impersonation passes the credit check, Cifas found in its Fraudscape report.
Overall, the biggest increase was seen in insurance products, which rose 1,600 percent to 4,215 cases in 2017 from 248 in 2016, while all-in-one products saw a 96 percent increase in fraud to 45 cases in 2017 from 23 in 2016.
Telecoms products were heavily targeted, with a 47 percent increase to 16,973 cases last year, up from 11,529 in 2016. Online retail experienced a similar increase, rising 49 percent to 11,729 in 2017 from 7,883 in 2016. Cases of fraudulent loans rose seven percent to 20,082, up from 18,726 in 2016.
Meanwhile, while still a substantial portion of overall identity fraud, bank account frauds fell eight percent to 51,544 in 2017 from 56,084 in 2016. Cases of plastic card fraud fell 10 percent to 58,788 last year from 65,425 in 2016. Although a relatively small aspect of the overall picture, cases of mortgage fraud fell to 45 cases in 2017 from 48 the year before.
Cifas deputy chief executive Mike Haley said: “It’s clear from this year’s Fraudscape that fraud in the UK continues to evolve. As some targets become harder to crack, criminals turn to what they consider are softer targets. Fortunately, many of these sectors such as telecoms and insurance, share their fraud data through Cifas and are detecting more fraud attempts. As fraudsters see their attempts to obtain these products become more difficult, the question will arise about where they will target next.”
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