-104.jpg)
Latest analysis shows sharp increase in fraud
The latest analysis released by CIFAS shows that fraud increased 16% in 2008 compared to 2007. The research also highlights a number of trends where fraud is continuing to increase, sometimes at dramatic rates...
Facility Takeover Fraud
For example, facility takeover fraud has increased by 207% - an unprecedented figure, that will undoubtedly be blamed on the credit crunch. As facility takeover fraud means taking over existing accounts with existing credit, fraudsters are able to use existing credit. Often facility takeover fraud is as the result of email phishing, telephone scams or credit card interception.
Insurance Fraud
The figures also show an increase in insurance fraud, which is thought to be a good indicator of fraud increasing during an economic downturn. Much of the insurance fraud reported by CIFAS results from false claims, or mis-representation – people not providing previous address details.
Fraud Protection
CIFAS provides protective registration, and 2008 saw a record level of these registrations, which aim to protect those whose identity is at risk due to crime or loss of data. Perhaps due to the volume of high profile data losses, protective registrations rose to 49,061 in 2008.
Fraud and the economy
Peter Hurst, CIFAS Chief Executive, warned: "With Britain now in recession, a significant rise in fraud is inevitable, as people turn to crime to make ends meet. They also show very clearly that fraudsters adapt their methods in response to changes in the financial markets. Now is the time for businesses to expand the teams working on fraud prevention and detection to deliver real value against falling bottom line profits.”
The full CIFAS analysis can be viewed here.
Print page
