Improvement In Early Detection Of ID Fraud Announced

According to figures released by CIFAS (the UK’s fraud prevention service), early detection of ID fraud has increased, thus thwarting fraudsters at an early stage.

CIFAS has revealed that two-thirds of identity fraud was identified as early as the application stage compared to 50 per cent last year. The latest figures are welcomed news to consumers and lenders in the continuing battle against fraudsters.

One contributory factor credited with this increase is CIFAS’s new fraud prevention database, which has lead to a reduction in the number of fraudulent applications being approved.

However, there is no room for complacency with more still needing to be done according to CIFAS chief executive Peter Hurst, who said: “ While it is pleasing for our members that so many cases are detected in advance, the continued threat of identity fraud is very worrying for individuals.

“ All parties in both the public and private sector need to work together to reduce this pernicious crime,” he added.

While the percentage of false applications may have risen, CIFAS found a rise of 17 per cent in the amount of cases this quarter, equating to 16,077 victims.

This could be partly attributed to the increase in credit cards being sent through the post since the introduction of Chip-and-Pin, however, research carried out by Prudential reveals that many cardholders still fail to take even the most basic of precautions against identity theft.

A quarter of those surveyed by Prudential said they were unconcerned regarding the threat of identity theft, whilst many admitted to not even changing their address with their bank after moving home, despite half of identity fraud involving the use of a victim’s previous address.

The survey revealed that despite the credit industry’s best efforts to combat identity theft, failure to take basic precautions by consumers in the UK was still contributing to the problem and making life easier for fraudsters.

With fraudsters finding access to people’s identity still relatively easy, through bank statements and credit card receipts for example, CIFAS estimated the cost of ID theft to be £35m.

However, Mr Hurst added: “ While many innocent victims had been affected, the greater success in stopping cases of fraud mean that CIFAS members had saved £163m this quarter alone.”

CIFAS was established by major UK lenders in the UK credit industry with the sole purpose of preventing financial crime.

Alisdair Milton
2cd May 2006

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