INDUSTRY FOCUS
Sharp rise in identity fraud
The UK’s largest fraud prevention service is warning of a sharp spike in identity scams as cases filed to the National Fraud Database increased by 11 per cent in the first six months of 2021.
Not-for profit fraud detection body Cifas highlights the increase in its latest ‘Fraudscape 2021’ report, and argues the figures exhibit a pattern similar to the aftermath of the 2008 financial crisis.
The total number of cases recorded to the National Fraud Database reduced in 2020 compared to the record year of 2019, linked to the fall in economic activity caused by the pandemic. However, a comparison of the first six months of 2021 reveals a sharp spike in cases of fraud, with almost 180,000 instances of fraud being reported.
This pattern was repeated following the financial crisis in 2008, when organisations in the UK recorded a 32 per cent increase in identity fraud the following year. Subsequently, Cifas is warning UK businesses and consumers to expect a continuation of the steep rise in identity fraud for 2021 and 2022 as criminals take advantage of the recovering economy.
Despite the dip in filings in 2020, Cifas member organisations filed a case to the National Fraud Database every two minutes on average, with three-in-five of these cases relating to identity fraud.
Mike Haley, CEO of Cifas, said: “Our members have seen over half a million instances of identity fraud over the last three years. The increase in the first six months of the year is extremely concerning as it indicates that the volume of identity fraud will continue to rise post-COVID as fraudsters exploit the identities of more innocent victims for criminal gain.”
He added: “Businesses need to be fully prepared to deal with an increase in fraudsters masquerading as genuine consumers attempting to purchase products and services using stolen information. The general public should also be wary of increased attempts to trick them out of their personal and financial details.”
Cifas is reminding the public to take care of their personal details and to follow the advice of the Take Five campaign before responding to any request for details:
1. Stop: Take a moment to stop and think before parting with your personal information
2. Challenge: Do you know who is asking for your personal information, credentials or financial details? It’s OK to reject, refuse or ignore any requests
3. Protect: Contact your bank immediately if you think you’ve fallen for a scam and report it to Action Fraud
Any individual who has been tricked out of their personal details may wish to consider applying for a Cifas Protective Registration to safeguard themselves from the devastating impacts of identity fraud.
