Case Studies

Web is best for ID theft

by Mark Rowe

The internet is by far the way used to carry out UK identity frauds. That is according to ID frauds recorded by the private and public sector members of CIFAS, a UK fraud prevention member body, during the first three quarters of 2012. Some 83 per cent of the 95,060 identity frauds recorded during the first nine months of 2012 were attempted, or carried out, online. The figures for the same first three-quarters of 2011 show 71pc of 81,626 ID frauds were done online. The percentages of all the other main channels used to commit identity fraud have fallen such as through a retailer or the mail, over the telephone, or face to face; with the exception of broker applications which saw a minor rise.

The scale of the problem posed by internet enabled identity fraud is alarming, but possibly not surprising, according to CIFAS Communications Manager Richard Hurley. He says: “The fact that the internet has revolutionised our society and the ways in which individuals and businesses conduct themselves is hardly news. The convenience and speed that it can offer – when compared with previous business models or ways of conducting transactions – is one of the internet’s prime benefits. It is easy to forget, however, that the convenience it offers genuine customers is also provided to those less scrupulous. Fraudsters and criminals mimic consumer behaviour, so as more of our transactions take place online, so will more of the fraud. This is a warning, therefore, to consumers and organisations that changing their own practices and behaviour is one way in which they can avoid falling victim to fraudsters.”

CIFAS stresses the need to be internet savvy and careful with personal details. As more genuine business takes place online, it is reasonable to assume that it is the same channel that is providing fraudsters with the information they need to attempt identity fraud (data). Richard Hurley says: “While internet enabled fraud is increasing, it is worth remembering that fraudsters only conduct these frauds to get hold of goods or services. We all have to consider, therefore, what online transactions or accounts we have that might prove to be most attractive to financial criminals. Initial analysis of fraud figures in 2012 demonstrates that plastic card accounts and mail order goods suppliers are favoured targets for fraudsters. In turn, this challenges customers and organisations either to change the ways in which they conduct business online (and accept the risks that online transactions can clearly pose), or lose the convenience that the internet offers and introduce lengthier, more stringent verification of all applications and transactions.”

CIFAS has some 260 members in the fields of banking, credit cards, asset finance, retail credit, mail order and insurance. Members share information on identified frauds.

More than half of the UK population have been targeted by online criminals with a successful attack costing, on average £247 per person [22 October 2012]

The survey of over 3,000 UK consumers, by not-for-profit organisation Get Safe Online, suggests that almost one in five who suffer an online attack are too embarrassed to tell anyone. The survey also showed that almost one in five have lost money as a result of fraudsters. The top five most common consequences of an attack are:

1. Having to change all of your online passwords.
2. Wasting valuable time trying to fix the problem.
3. Losing money.
4. Left feeling embarrassed.
5. Replacing bank or credit cards.

According to the survey the top five most common threats in the UK are:

1. Viruses – a file that is written with the sole intention of doing harm, or for criminal activity on. your smartphone, computer, tablet or laptop – is the most common type of threat.
2. Email hackers – almost one five people in the UK have had their email accounts targeted by hackers.
3. Social media hackers – more than one in 10 of us has had a social media account (like Facebook) targeted by hackers.
4. Fraudulent selling – over one in ten people have bought something online that never arrived.
5. Online credit card fraud – one in ten people have had their bank or credit card details stolen online.

In spite of the number of attacks in the UK, the survey uncovered that it hasn’t changed people’s behaviour. Of those who experienced an attack, 65 per cent and 75pc of people respectively continued to use their laptops, tablets, and smartphones in the same way. Despite a fifth of people having their social media accounts hacked, only half of respondents use the highest levels of security on the social networking site Facebook and one in ten are not even aware that you can change your security settings. Visit http://www.getsafeonline.org for ‘click and tell’ cyber-safety tips.

Francis Maude, Minister for Cyber Security at the Cabinet Office said: “The internet provides us with so many opportunities – for education, buying and selling online, communicating with work colleagues, friends and family alike. But unfortunately there are always those who will seek to take advantage of us when we are online going about our everyday business. Get Safe Online’s new research shows that people are still at risk. We all need to take steps to spread advice on how to help prevent this sort of thing happening in the first place. By following some very simple steps and precautions available through getsafeonline.org, we can continue to take advantage of all the benefits the Internet has to offer, safely and securely.”

Related News

Newsletter

Subscribe to our weekly newsletter to stay on top of security news and events.

© 2024 Professional Security Magazine. All rights reserved.

Website by MSEC Marketing