Personal details are still the most valuable for fraudsters, it is claimed by a trade body.
Use of fake identity details, or the impersonation of an innocent victim (identity fraud) now accounts for over a half (52 per cent) of all fraud. That is according to frauds recorded by cross-sector members of CIFAS – the UK fraud prevention trade association, during the past 12 months. Frauds targeting loan products (personal unsecured loans and pay-day loans) increased markedly over that period. Details are in Fraudscape Bulletin 2013.
A copy of Fraudscape Bulletin 2013 can be downloaded at CIFAS’ website.
Findings include:
Almost 114,000 confirmed frauds were recorded to the CIFAS National Fraud Database in the first half of 2013.
Account – or facility – takeover frauds constitute 14 per cent of all frauds, meaning that two thirds of all frauds (66pc) related directly to the abuse of identity details.
The number of frauds against plastic card accounts (such as credit or store cards) rose by 19 per cent in first half of 2013 compared with the last six months of 2012.
While overall fraud levels have decreased slightly (3pc) from the last half of 2012, identity fraud (the use of a false identity or the identity details of another person) not only accounts for over a half of all confirmed frauds in the first half of 2013, but has increased from the last six months of the previous year. With account – or facility – take-over fraud (where fraudsters bypass security and hijack the running of an account) also standing at 14pc of all fraud, data enabled identity crimes continue to be the most serious fraud threat facing organisations and customers.
Not all gloom
It’s not all gloom as the body suggests that better security questions, the use of voice recognition and ‘device ID’ (the identification of the device on which an order was placed) may well ‘weed out’ fraudsters before they manage to get as far as hijacking a victim’s account; fraudsters may turn instead to retailers and others without such security measures.
CIFAS Communications Manager, Richard Hurley, says: “CIFAS has long highlighted that data is the cornerstone of the fraudster’s trade. With two thirds of all recorded fraud now relating to the abuse of identity details, the message is clearer than ever. Organisations and individuals must develop new ways of safeguarding their personal data, otherwise they effectively provide the fraudster with a licence to steal money.”
Changing products
Industry initiatives such as improved security for online transactions and Chip and PIN have doubtlessly prevented much fraud. In spite of this, however, fraud against plastic card accounts (such as credit and store cards) has increased during the previous 12 months. This is in contrast to bank account frauds, which (in spite of an increase in identity fraud against bank accounts) have decreased by 11pc from the last half of 2012. The increased visibility of organisations offering either unsecured or payday loans, however, has led to a 70pc increase in fraud against loan accounts.
Fraudsters attempted in some cases to impersonate individuals whom they knew to have a sufficiently good credit history, so as to be granted a personal loan. Or, they have gained enough personal information to allow them to impersonate individuals. As so much pay-day loan business is transacted online (and many such loans are granted instantly), fraudsters are evidently taking advantage of this to obtain quick cash illegally, CIFAS suggests.
Elsewhere, mail order accounts were targeted substantially less (down 44pc) in the first half of 2013 compared with the previous six months; irrevocably demonstrating that fraudsters will constantly transfer their attention to new targets rather than give up.
Comment
Richard Hurley adds: “Fraudscape Bulletin 2013 shows that there is a changeable and volatile fraud landscape, and that the overall pattern is a sobering warning to organisations and individuals. Identity details and personal data are now driving the vast majority of fraudulent activity, and this signals the need to change processes, protection and attitudes fundamentally. The shifts in targets for fraudsters also underlines that where improved security measures are introduced, fraud simply migrates elsewhere, so all organisations must be prepared to be targeted in new ways. Fraud, unfortunately, is a crime that shows no sign of disappearing; organisations and individuals must therefore find a way of staying one step ahead of the fraudsters.”
See more at: http://www.cifas.org.uk/fraudscapebulletin_augthirteen#sthash.ZoW2TbQx.dpuf
Tips
CIFAS says that you can reduce the risk of your details falling into criminal hands by keeping your personal details to yourself. Here are some tips:
Treat your personal details as you would a valuable item: as something to be looked after.
If you use social networking sites, limit the amount of information you give away and activate tough privacy settings.
Only enter your personal details into secure websites belonging to organisations you know and trust.
Make sure your computer has an up-to-date firewall and is protected by anti-virus and anti-spyware programmes.
Beware of emails ‘phishing’ for personal details – these often direct you to realistic-looking sites designed to steal details.
Never share your passwords or PIN numbers with other people.
Don’t give unsolicited callers any personal or financial details over the telephone. End the calls and call organisations yourself to check that the call was genuine.
If you move home, make sure that you take all steps to ensure the security of your mail.
Shred any documents that contain your information before you throw them away.
If items such as passports, statements, chequebooks and driving licences are lost, or statements do not arrive, report it immediately and look to change account details where possible.
Further tips on keeping yourself safe can be found online at: www.cifas.org.uk/avoid_being_a_victim
Hurley adds: “Organisations must always play their part, and CIFAS always calls for them to invest in strong preventative measures to combat fraud. But there is much that individuals themselves can do to help. By treating data like an item to be guarded, and by exercising due caution and following best practice, people can really add an extra barrier against the fraudster and against falling victim to today’s identity fraudsters.”
Crimestoppers has launched a campaign to track down individuals guilty of attempting to fraudulently obtain genuine identity documents in the UK. Celebrating its 25th anniversary, the crime reporting line charity is looking for 25 of these most wanted fraudsters who are attempting to steal the identities of UK nationals to receive documents such as passports and driving licences that will be used to impersonate others for engaging in criminal activity such as money laundering, drug trafficking, fraud and illegal immigration.
The 25 individuals featured in this appeal have been identified by the Serious Organised Crime Agency (SOCA) as using the names and personal information of genuine UK nationals and presented their own picture with those details to apply for documents.
Details of the campaign have also been shared with over 35,000 social media followers of Crimestoppers and via Facebook and Twitter found at www.facebook.com/crimestoppers and www.twitter.com/crimestoppersUK
Crimestoppers Chair and Founder, Lord Ashcroft KCMG PC said: “These perpetrators of identity fraud are using genuine details of innocent members of the public to apply for passports, driving licences and other documents that will be used to engage in criminal activity.
“These individuals are not who they say they are and the details you believe you know about them are likely to be false but still help in finding their location. Any information that you pass on however can play a vital part in them being located and facing justice.”
Crimestoppers Director of Operations, Roger Critchell, said: “Crimestoppers needs help from the public to locate these criminals as soon as possible. Please visit our social media pages and share the faces of these identity thieves with your friends and family and help reduce the likelihood of further innocent people becoming victim to having their identity stolen by fraudsters.
“We need to protect ourselves from such criminals particularly now with data driven identity crimes now making up the vast majority of all fraud in the UK. Tell us what you know, not who you are by calling us on 0800 555 111 or visit our website.”
And Nigel Kirby, deputy director of SOCA Prevention, said: “Be in no doubt, these fraudulently obtained identity documents are being used by criminals for criminal purposes. Organised crime groups are known to use them to further drugs and firearms trafficking, illegal immigration and fraud – which in turn causes harm to individuals and communities across the UK.
“Passports and driving licences do not just allow you to travel and drive, they are important identity documents that can be used to support applications for mortgages, bank loan or benefits. This is the first phase of this campaign and it is important that these criminals are tracked down and brought before the courts.
“In October 2013 the new National Crime Agency (NCA) will become fully operational. Building on the work of SOCA, the NCA will have an unprecedented mandate to lead the whole of law enforcement’s fight against serious, organised and complex crime including fraud.”
Crimestoppers takes information on all crime anonymously via 0800 555 111 or through an online form. Both routes are 100% anonymous – names are not taken, calls and IP addresses are not traced or recorded and people do not have to go to court.
Crimestoppers is asking the public to look at the 25 individuals and contact the charity anonymously if they can identify any of the suspects on the list. Details can be found on the Crimestoppers Most Wanted gallery.
