Identity theft up by 40%

CIFAS, the UK’s Fraud Prevention Service, has reported that there has been a 40% increase in identity theft cases in the first quarter of 2009.

In the first quarter of 2008 there were nearly 18,000 cases of identity theft.

By the first quarter 2009 this number had risen to nearly 25,000.

Identity theft is when fraudsters take on creditworthy identities to enable them to steal money, goods or services at someone else’s expense.

Regular checks on your credit report can help protect yourself against identity theft – when checking the report if you find unknown accounts or credit checks then you can raise these promptly with the lenders and authorities.

There has also been a 75% increase in facility takeover or account takeover frauds – up from 3,276 in quarter one 2008 to 5,856 in quarter one 2009.

This is where the fraudster manages to take control of someone’s account to use for their own fraudulent benefit.

The number of fradulent insurance claims is also on the rise as figures from the ABI confirmed earlier in April and now supported by CIFAS members.

CIFAS has previously noted that economic slowdown and rises in fraud do go hand in hand. This is confirmed by these latest fraud figures.

Peter Hirst, CIFAS Chief Executive, said ‘There has been much attention given to the financial impact of the current economic turmoil on society. Fraud is yet another aspect, and one that should not be overlooked.’

He added ‘From looking after our own idenities and personal details, through to ensuring that fraud data sharing is used appropriately to prevent further fraud – we must not allow fraudsters to make the cost of recession any greater.’

CIFAS consists of 260 Member organsiations across banking, credit cards, asset finance, retail credit, mail order, insurance, investment management, telecommunications, factoring and share dealing.

Information is shared amongst members on identified frauds in the fight to prevent further fraud.