Fraud cases continue to rise

Fraud cases are continuing to rise, according to data provided by Members of CIFAS, the UK’s fraud prevention service.

Comparing the first half of 2007 with the same period in 2006, CIFAS members reported a sharp rise in most types of financial fraud.

Application fraud (where fraudsters tell lies on application forms in order to obtain credit, insurance or other products) increased by nearly 19%, with 37,357 cases detected and filed by CIFAS Members. False insurance claims also showed an increase during the period of more than 10%.

“This indicates that fraudsters are becoming more sophisticated and are managing to access more data about their victims

CIFAS chief executive, Peter Hurst

However, one surprising statistic was that identity fraud overall has stabilised when compared with the same period in 2006. That said, the number of cases identified (39,261) is still worryingly high, with the number of victims increasing from 32,039 to 33,411.

In addition, the swing towards current address identity fraud noticed during the first quarter of 2007 has been sustained, and now represents 35% of identity fraud cases, compared with 25% during the same period in 2006. Previous address identity fraud now accounts for only 25% of identity fraud cases, compared with 35% during the same period last year.

CIFAS chief executive, Peter Hurst, said: “The surge in current address fraud is particularly worrying because, in order to perpetrate it, the fraudster effectively needs a very thorough knowledge of the victim’s personal details. This indicates that fraudsters are becoming more sophisticated and are managing to access more data about their victims. This underlines the need for all of us to protect our personal details as carefully as possible, and not to take any chances.”