- New report shows over 325,000 internal and external fraud cases recorded in total in 2016, up from 321,092 in the previous year.
- Organisations successfully prevented £1.03 billion in fraud losses through non-competitive data sharing.
- Identity crimes (identity fraud and facility takeover) remain the biggest threat, representing 60% of all fraud recorded.
- 88% of identity frauds were committed online, compared to 30% of facility takeovers occurring online
- Cifas is calling for more emphasis to be put on educating people about fraud in order to prevent facility takeover from taking place
Cifas, the UK’s leading fraud prevention service, has released a new report called ‘Fraudscape’ which details the fraud trends they have discovered from over 325,000 fraud cases recorded by them in 2016. The data has been reported to them by over 387 organisations, including major UK brands.
Fraudscape showed that facility takeovers increased by 45% from 15,497 to 22,525. Over 50% of the facility takeovers recorded were enabled over the phone, typically to call centre staff. Facility takeover happens when a fraudster poses as a genuine customer, gains control of an existing account and uses it for their own ends – such as making transactions or ordering new products or product upgrades. Any account can be taken over by fraudsters, including bank, credit card, telephone, email and other services.
City of London Police’s National Coordinator for Economic Crime, Commander Dave Clark, said:
“Whilst national reporting of fraud and cyber crime has some way to go in representing the true scale and threat to our citizens and businesses in the UK, I welcome the stark reality that Cifas’ Fraudscape figures show from their member organisations.
“There are clear indicators in Fraudscape as to the key enablers of fraud being exploited by criminals; such as the telephone, online targeting and the fraudulent use of identity. The City of London Police and Cifas will continue to work with cross sector partners to pursue and disrupt fraud whilst also providing the most up to date protection advice to citizens and businesses”.