Fraudulent credit card applications in the UK have risen sharply over the last year, according to the latest Experian Fraud Index.
The annual Experian Fraud Index, published 20 November, revealed that fraudulent credit card applications rose from 14 in every 10,000 applications in H1 2012 to 25 in every 10,000 in H1 2013 (January – June 2013). Experian put some of the increase down to improved detection and prevention levels.
Go deeper with GlobalData
Nick Mothershaw, UK&I director of identity & fraud at Experian, said: "The financial services industry is making progress in combatting fraud, and it is encouraging that more fraud is being detected and prevented than ever before.
"However we should not be complacent. Although better systems are in place both lenders and consumers need to remain constantly vigilant, especially against the rising threat of identity theft."
Identity theft was shown to be a growing threat, accounting for 46% of all fraud attempts, compared with just 27% last year.
The Fraud Index also showed that insurance fraud rose over the last year, with 14 false claims in every 10,000 applications, compared with 11 in every 10,000 in H1 2012.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataCases of savings account fraud have risen from 13 in every 10,000 applications in H1 2012 to 17 in every 10,000 applications in H1 2013
Current account fraud saw a marked fall in fraud cases found with 20 in every 10,000 applications received by financial institutions detected to be fraudulent in H1 2013 versus 44 in every 10,000 in H1 2012.
Mothershaw said: "Our analysis also suggests that fraud is increasing in major areas such as credit cards, insurance, savings accounts and automotive finance.
"Organisations can take simple steps to mitigate risk so that they crackdown on individuals misrepresenting their personal information while also preventing third-party identity fraudsters seeking to open accounts as a springboard for other, more lucrative credit products.
"At the same time, consumers need to keep a close eye on their personal credit information and, where possible, take every practicable step to avoid becoming a victim to identity theft."
Related articles:
Credit cards losses up 22% in South Africa
Oracle Payment among employers of four to stand trial for fraud
Irish banks admit fraud on cards involved in Loyaltybuild breach
