The counter-fraud trade body Cifas reports an overall increase of 6pc in cases recorded by its members.
Identity fraud reached record highs with plastic cards taking the brunt. Identity fraud significantly increased in 2018, with 189,108 cases recorded an 8pc increase on 2017’s figures. Plastic cards were hit the hardest with 82,608 reports of fraud, up 41pc from 2017. More fraud means more victims – 19 out of 20 frauds involved a victim left to pick up the pieces.
Cifas reports increases in identity fraud across all age groups but particularly the young and old. Victims aged 21 and under rose 26pc, while the over-60s saw a 34pc increase on the previous year. As older people are more likely to be approved for credit and their online presence grows, fraudsters are increasingly targeting them online, the membership body says: in 2018 more than 33,000 over-60s were the victim of identity fraud.
Cases which are indicative of money mule activity are up across the board with a 26pc increase from 2017, and Cifas has seen a steep incline in those aged 40 to 60 becoming involved in such activity, increasing 35pc. This illustrates that being drawn into such criminality is not a problem limited to younger generations.
Chief Executive Officer of Cifas, Mike Haley, says: “Fraud in the UK continues to rise and fraudsters are constantly finding new methods of committing fraud. From identity theft through to using the young and naïve as money mules to launder money, the economic and social harm to the nation is growing. The only way to fight the threat is to combine communication and collaboration, working together to present a united front against the perpetrators. As no one can expect to deliver effective defence against ever-present threats without the full picture, Fraudscape is a crucial weapon in fraud prevention, allowing us to see where the current attacks are coming from and where future dangers lie.”
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Keith McGill, head of identity and fraud at credit checking agency Equifax, warns of the growing agility of fraudsters. He says: “The latest Cifas figures show worrying trends as identity fraud rose by 10 per cent in 2018, with those aged under 21 and over 60 being increasingly targeted by fraudsters. There was also a 26% rise in cases of ‘money mule’ fraud, highlighting the agile nature of fraud and its constantly shifting battleground.
“An overall increase in identify fraud reinforces that this must remain a top priority for businesses. With over 50% of account creations now coming from a desktop or mobile, understandably organisations are prioritising smooth payment journeys to optimise customer experience, but this shouldn’t come at the expense of robust controls to protect consumers.
“The ease with which personal information can be obtained along with the anonymity of the web makes the internet a playground for fraudsters. Cyber-criminals are quick to move between channels while implementing increasingly sophisticated methods to use synthetic identities and money mules across card payments, remote banking and cheque fraud.
“Retail and telecoms companies continue to be seen as soft targets. These organisations need to strike the right balance between customer demands for fast authentication and strong security. Technological advancements and the emerging new open data landscape are making it easier than ever to have strong customer authentication without impacting the user experience, and businesses should embrace this opportunity for the benefit of all.”
Brett Beranek, Vice President and General Manager, Security and Biometrics Line of Business at Nuance Communications says: “Fraud is a huge issue today – both for people’s personal privacy and security, but also in terms of its impact on the economy. Research has found that fraud costs the UK economy over £100bn per year, demonstrating how much work still needs to be done to minimise the threat. By deploying tech such as biometrics, companies have prevented over £1bn worth of customers’ money from getting into the wrong hands.
“When firms store knowledge credentials, such as passwords, in a centralised database, massive security breaches, where millions of accounts get compromised are more likely. Biometrics offers a way out of this security vulnerability by storing biometric characteristics rather than the credential itself, eliminating the possibility of a massive security breach. We could eliminate these massive hacks entirely. It’s high-time that organisations address this issue once and for all.”
About Cifas
A not-for-profit fraud prevention membership body, whose members are typically banks, retailers and insurers, it manages a database of instances of fraudulent conduct. Visit www.cifas.org.uk.
