Menu
Save, make, understand money

Credit Cards & Loans

Identity thefts account for half of detected fraud

Lucinda Beeman
Written By:
Posted:
13/10/2014
Updated:
05/12/2014

Third party fraud – more commonly known as identity theft – now accounts for 47 per cent of all fraud cases prevented and detected.

The latest fraud data from information services company Experian shows a significant rise in the detection of identity theft, which has risen 17 percentage points since last year.

Third party fraud is most common in applications for cards, savings and loans.

Nick Mothershaw, UK&I director of identity and fraud at Experian, said: “The significant increase in detected and prevented third party fraud shows how far providers have come in becoming wiser to the tricks of identity thieves, although recent high profile instances of data theft show that there is still much to be done.”

Current account applications saw the largest rise in detected fraud year-on-year, with the number of cases uncovered as fraudulent 60 per cent higher in 2013/2014 than the year prior. 42 per cent of current account applications were uncovered to be third party fraud attempts compared to 21 per cent the year before.

Mothershaw added: “The level of detected current account application fraud may suggest that while the seven day switching process is more convenient for customers, it may also have opened up new weaknesses in the application process which can be exploited by fraudsters. As people spread their financial products across a wider range of digital platforms, they must also remain vigilant to ensure their personal details remain out of the clutches of identity thieves.”

Sponsored