Fraud rises in first quarter of 2007

Financial fraud has risen in the first quarter of 2007, a new report has revealed.

The report, from fraud prevention service Cifas, found that there had been an increase in “many types” of financial fraud compared to the same period last year.

Application fraud, where fraudsters supply false details in order to get credit, rose by 21 per cent to 19,239 incidents.

Identity theft also went up – there were 21,122 cases recorded during the period, equating to an increase of 12 per cent.

There was also an increase in incidences of facility takeover, such as remote computer hacking, which went up by 34 per cent.

For Cifas, the most “disturbing developments” were in the area of current address fraud, which often involves application fraud using the victim’s current details, as opposed to previous address details, which has traditionally been easier for fraudsters to effect.

Peter Hurst, Cifas chief executive, said “The surge in current address fraud is of particular concernĂ–[it suggests] that fraudsters are becoming more sophisticated in their methods”.

In related news, new rules were recently introduced for the reporting of card fraud that pass the responsibility to inform the police over to the card supplier and not the victim, as was previously the case.

© Adfero Ltd

Leave a Reply

Your email address will not be published. Required fields are marked *