Identity Fraud continues to rise in the UK but overall fraud level decreases.
Last week Cifas released its 2018 Fraudscape covering details of fraud cases reported to them in 2017. The key findings from the report are:
· Identity fraud continues to rise
· The overall number of fraud cases reported is down slightly
· Money mule threat continues to grow
Identity fraud continues to rise
Following 2016’s rise in identity fraud cases 2017 has seen that trend continue and hit another all time high. The total number of identity fraud ca
ses in 2017 is up 1% on the number of cases reported in 2016.
95% of the cases reported were committed using a stolen identity and 8 out of 10 of these cases were applications made online. This shouldn’t be a surprise for many of us as online applications have now been the channel of choice for fraudsters for several years. The UK also hasn’t seen the same threat that the US has around synthetic identities, but this is very much a watching brief to see if synthetic IDs become more of an issue in the UK.
One interesting point of note from the Cifas Fraudscape is the 1600% increase in insurance identity fraud cases reported. The report doesn’t touch on the possible reasons for this, but it does point in a shift of tactic for fraudsters in using stolen identities to take out insurance products.
The overall number of fraud cases reported is down slightly
For the first time since 2013 the total number of fraud cases reported to Cifas is down. 2016 saw a record number of cases reported to Cifas and numbers haven’t fallen dramatically in 2017 but are down 6%.
The fall in the number of cases reported is massively against trend and is only the 2nd fall in numbers in the last 10 years. After the last fall in cases reported the following year saw a spike, so will we see the same again in 2018?
Money mule threat continues to grow
2017 has seen another increase in the number of mule accounts identified, with an 11% increase on the number of cases reported in 2016.
Fraudsters are continuing to target the younger generation to use as mule accounts, with the lure of fast cash and luxury goods. Fraudster continue to target the younger generation as detection software used by financial institutes has evolved making it more difficult for fraudsters to create their own mule networks to launder their proceeds of crime. So are turning to those who they can manipulate to launder their funds.
For the full Fraudscape 2018, see here.
To find out more about how TruNarrative can help your business combat fraud in 2018, book a demo here