Fraud is spiraling in the UK

New figures released this week show that the level of fraud in the UK increased by nine percent over the course of 2011, with identity fraud showing the highest increase.  Throughout the year a total of 236,500 cases were reported, which is the highest number yet according to the UK Fraud Prevention Service, CIFAS.

Almost half of the cases concerned identity fraud, which is a ten percent increase when compared to the amount of identity fraud instances reported in 2010. Over the last five years facility takeover fraud, which concerns a fraudster accessing a credit card or bank account from a victim, has increased by more than 300%.

According to CIFAS this means that data fraud makes up about 58% of all cases reported, and even more concerning, the amount of victims that have suffered both types of fraud have increased by 10% when compared to 2010 figures.

CIFAS communication manager Richard Hurley stated that all organisations need to be aware of the threat and review how they will prevent themselves from becoming a victim of fraud in the future. He added that organisations can protect themselves either by increasing the id requirements they put in place when dealing with PINS or applications or by taking a closer look at their security procedures.

Also on the rise in 2011 were accounts of misuse facility fraud, which occurs when an account number is obtained legally but then later used for fraudulent purposes. On the up side, the amount of false insurance claims filed in 2011 dropped by almost 23%, down to just 396 cases compared to the previous 537 cases.

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