Fraud against plastic card accounts rose by 19% in first half of 2013
CIFAS has today revealed that data driven identity crime accounts for 2 in 3 of all frauds.
Account – or facility – takeover frauds constitute 14% of all frauds, meaning that two thirds of all frauds (66%) related directly to the abuse of identity details.
The number of frauds against plastic card accounts (e.g. credit or store cards) rose by 19% in first half of 2013 compared with the last six months of 2012. Frauds targeting loan products (personal unsecured loans and payday loans) also increased markedly over the same period.
Personal details still the most valuable for fraudsters
While overall fraud levels have decreased slightly (3%) from the last half of 2012, identity fraud (the use of a false identity or the identity details of another person) not only accounts for over a half of all confirmed frauds in the first half of 2013, but has increased from the last six months of the previous year. With account – or facility – takeover fraud (where fraudsters bypass security and hijack the running of an account) also standing at 14% of all fraud, data enabled identity crimes continue to be the most serious fraud threat facing organisations and customers.
Changing products: a fraudster’s recurring tactic
Industry initiatives such as improved security for online transactions and Chip and PIN have doubtlessly prevented much fraud. In spite of this, however, fraud against plastic card accounts (e.g. credit and store cards) has increased during the previous 12 month period. This is in contrast to bank account frauds, which (in spite of an increase in identity fraud against bank accounts) have decreased by 11% from the last half of 2012. The increased visibility of organisations offering either unsecured or payday loans, however, has led to a 70% increase in fraud against loan accounts.
Elsewhere, mail order accounts were targeted substantially less (down 44%) in the first half of 2013 compared with the previous six months; irrevocably demonstrating that fraudsters will constantly transfer their attention to new targets rather than give up.
Gaby Devereux, Member Recruitment Manager at CIFAS will be discussing the latest CNP fraud trends and effective prevention methods to protect your business against online fraud at the Retail Bulletin’s 4th Loss Prevention Summit, 10th September 2013. Join your peers for this interactive, one-day event. Click here to view the programme.
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