The credit reference agency, Experian, has released a report showing that there has been a sizable increase in the number of confirmed identify thefts since the same period last year. This research indicates that the measures set up to detect such fraud are proving successful.
The report details how the detection of such fraud has improved across the financial board – with an average of thirty five detections per ten thousand applications during August this year, a rise from twenty four per hundred thousand in August 2013.
However, 47% of total cases were ‘third party fraud’ – that is – where the identity of the victim has been assumed by a third party. This is a rise of 17% since last year.
The most susceptible products to third party fraud were found to be savings, loans and credit card applications. Conversely, mortgages were highlighted as being the most at risk from the applicant themselves. Car finance fraud was also found to be generally committed by the customers themselves.
It seems likely that the seven day switching process, while without doubt more convenient for the customer, may also have highlighted weaknesses in the process of application which may have been utilised by those committing the frauds.
In conclusion, these levels of detected identity fraud across the spectrum of financial products would seem to suggest that fraud is as prevalent as it ever was, if not even more so. It is vital, therefore, that providers invest in the most up to date fraud prevention software to protect themselves against first party fraud, and their customers against third party fraud.
It is also the responsibility of the individual to protect their personal information and keep it out of the clutches of those who seek to use it to make fraudulent applications.
To learn more about dealing with identity fraud and debt, visit the Baines & Ernst website.