While overall fraud decreased in 2013 by 11 per cent compared with 2012, that came after two years of steep rises and the unprecedented near 250,000 frauds recorded in 2012, reports the trade association CIFAS. This means that the 2013 figure remained largely in line with the patterns witnessed since 2009 and in excess of the levels recorded before the beginning of the recession.
Identity related crimes – frauds where criminals misuse the personal data of victims – still accounted for over 60 per cent of all fraud in the UK in 2013. CIFAS have released Fraudscape: a 52-page report that analyses the frauds recorded by over 300 organisations during 2013.
There were notable changes in the products targeted by fraudsters in 2013 compared with previous years: plastic cards (that is, credit and store cards) were the product most targeted by fraudsters in 2013 (30 per cent of all frauds – representing an increase of 24 per cent from 2012). Also rising were mortgage fraud (by 26 per cent), and loan fraud (55 per cent) while fraud against bank accounts decreased by 14 per cent.
Men remained the most likely to be targeted by identity fraudsters, as well as being the most likely to commit fraud.
Geographically, large urban centres such as London remained the fraud hotspots in the UK. A notable shrinkage has taken place, however, with far fewer ‘hotspots’ outside London and the South-East recorded in 2013.
Collaboration with Experian and analysis of CIFAS data (using their socio-demographic tool Mosaic) confirms that certain preconceptions have a solid basis in fact: notably that the most affluent members of society are the most frequently deliberately targeted by fraudsters. However, the analysis has also helped reveal an apparent generation gap in terms of awareness of fraud: with elder citizens (irrespective of status) far less likely to commit fraud.
CIFAS Communications Manager, Richard Hurley, says: “Numerous sets of figures have been released by a variety of organisations during the past six months, presenting a confusing picture of fraud levels. Understanding the fraud figures, therefore, remains at the heart of this year’s Fraudscape report. Through its mix of statistics, geographic and demographic analysis, and examination of fraud in terms of the products and people affected, it is clear that the 11 per cent reduction is not quite as rosy a picture as one might hope.
“Not only does Fraudscape confirm how quick and ingenious fraudsters are (quickly targeting organisations that are not part of the joined-up counter-fraud community in the UK), but also shows that there is no cause for complacency. Organisations and the media have a role to play in terms of educating the public about fraud. In addition, those organisations – both public and private sector – that are not putting counter fraud measures in place and sharing their expertise and data are making it more difficult for the UK to defeat fraud.
“While any reduction in fraud is good, this report demonstrates that the fraudsters have merely changed tactics. It is up to the collective efforts of the UK’s public and private sectors therefore to do more to do to protect its reputation as a safe place to do business. Otherwise, we collectively leave our wallets in full view to be stolen by the fraudsters.”
With over 221,000 frauds recorded in 2013, that is over 600 frauds every day. According to the counter-fraud trade body this provides an indication of what true UK fraud levels really are, given the number of public and private sector organisations that do not yet participate in joined-up counter-fraud systems such as CIFAS.
Visit: www.cifas.org.uk/fraudscape_twentyfourteen
