Credit card fraud soars to record high in 2022
Credit card application fraud rose to a record high in 2022, revealing the true scale of the problem for users and businesses.
In the last quarter of 2022, credit card application fraud rose 18%, taking it to its highest yearly rate recorded by Experian in the last 10 years.
According to the information service, fraudsters are increasingly looking to take advantage of people’s Personally Identifiable Information (PII) to take out credit and borrowing in their name.
In the loans space, Experian revealed fraud has more than doubled over the last two years.
First-party fraud – where someone gives false information or misrepresents their identity to get a better deal with no intention of paying it back – now accounts for 27% of all applications.
Experian said this suggests households were looking to obtain additional borrowing over the Christmas period to cover their costs.
Evolving battle against fraud epidemic
Eduardo Castro, managing director of identity and fraud, Experian UK&I, said: “Our latest figures show the scale of the fraud epidemic facing consumers and financial services companies.
“The rise in first-party fraud is also striking, as it suggests that households are misrepresenting their financial situation to meet additional costs, or even cover everyday expenditure.
“It’s an ongoing, evolving battle, with fraudsters always looking at new ways to dupe victims. However, lenders are deploying new technology to help them identify potentially fraudulent activity as early as possible, preventing it, and minimising losses to both them and their customers.”
Experian prevented more than £1.8bn of fraudulent transactions in 2021.