Fraud levels hit new highs

Last year CIFAS members reported the highest number of frauds ever recorded as the overall level of fraud in the UK increased by 9% - almost half of all cases were due to identity fraud.

The UK's Fraud Prevention Service said that in 2011 more than 236,500 frauds were identified and over 120,000 individual cases had an identifiable vic

The continued blight of identity fraud accounted for over 113,000 fraud cases - a 10% increase from 2010 levels and representing 48% of all frauds.

There was an 18% surge in facility takeover fraud (where a fraudster gains access and fraudulently uses a victim's account such as a credit card, bank account or mobile phone), meaning that this type of fraud has rocketed by nearly 300% in just five years.

Misuse of facility fraud (where an account, policy or other facility has been legitimately obtained but is later used fraudulently) rose by 13%.

CIFAS sais these new levels of fraud are unprecedented and as austerity bites, economic crime continues to be a stealthy, insidious danger.

Richard Hurley, CIFAS communications manager, commented: "It is vitally important to remember that fraud and economic crime are offences with a range of motivations.

“Many of these frauds will undoubtedly be committed by organised criminal elements, but many will also be committed by people who seemingly feel that their circumstances leave them no choice. Equally, financial desperation leaves many susceptible to potential scammers.

“Untangling the mess that fraud causes, irrespective of motivation, however, is time-consuming, damaging and costly to businesses, to the public sector and to individuals. Rather than being the ‘victimless crime' it is sometimes heralded as, fraud actually makes victims of us all."

CIFAS chief executive, Peter Hurst, concluded: "With the cost of living increasing, pay levels frozen for many, and tax and VAT changes taking effect, perhaps it is unsurprising that fraud has rocketed again.

“Prevention, however, remains better than cure, and it is time for all organisations and consumers to start reviewing their approaches to preventing fraud rather than trying and failing to recover losses.

“Not investing in proper fraud prevention systems and approaches, from online security to data sharing, is tantamount to leaving an open till unguarded. It is the same whether you are a private sector organisation, a public sector body or a charity. It will lead to only one thing: financial loss."