Fraud In UK Rises To Record Levels

Last Updated 17:50 05/03/2012
Jason Farrell, Sky News Investigations
Fraud has risen to a record level according to a new report seen exclusively by Sky News.
The UK's Fraud Prevention Service Cifas has found that some crimes have risen dramatically.

People are more likely than ever to have their identities and bank account details stolen and misused.

In the last year overall fraud has risen by 9%. The majority of these crimes involve identity (ID) fraud - and ID fraud on loans is up 58%. ID fraud used to manipulate bank accounts is up 35%.

Criminals are mining for more in-depth information so they can commit bigger frauds.

Attempts to obtain someone's credit file have increased dramatically from 285 in 2007 to 4,841 in 2011.

The economic downturn has made people more vulnerable to organised fraudsters, falling prey to employment scams, tricked into laundering money for criminals, more likely to give out their bank details for the offer of a payment or good value loan down the line.

Richard Hurley from Cifas said more people are also attempting to commit fraud from their own bank accounts. He said: "The figures show a record level of fraud, over 236,500 cases.

"These are proven frauds. This is not just suspicious activity but there is a level of proof that allows the police to act.

"What is most alarming is the amount of identity fraud. It makes up 58% of all frauds."

He added: "There is an economic pinch on, so people are doing things that perhaps two or three years ago they wouldn't be doing."

The report suggests that it has never been easier to get a person's private information. Raiding bins is one method but the internet has opened up the game.

Data has become of intrinsic value to the modern fraudster and evidence suggests they are able to obtain a wider tapestry of information.

Passport numbers, date of birth, financial footprint, telephone numbers, email addresses and passwords are all dangerous in the wrong hands.

Mr Hurley said: "The Financial Service industry has a responsibility to speak to its customers to make sure they are putting checks in place to look after their details... making sure firewalls and anti-virus software are in place, making sure passwords are not easily ascertainable from a Facebook account, for example."