40% surge in fraudulent activity

The number of fraud victims have increased by more than 40 per cent in the first half of 2009, according to a recent report by CIFAS, the UK’s Fraud Prevention Service.

The report also revealed a 74 per cent rise in identity fraud compared with the same period in 2008. Forged or altered UK passports are the most commonly used document in support of fraudulent applications.

“The traditional focus on the ways in which fraudsters operate draws attention away from the number of fraud victims being recorded, and these figures surely underline the very real human cost of fraud in the recession,” said Richard Hurley, communications manager at CIFAS .

The report also revealed a 40 per cent increase in facility takeover frauds, where fraudsters gain access to legitimately obtained monies or services of innocent victims.

However there was an 11 per cent increase in the financial losses avoided through fraud data sharing by CIFAS Members.

“Talk of an economic recovery must be premature but there is some good news,” said Hurley. “While fraud and fraudsters continue to wreck havoc on businesses and consumers alike, it is very reassuring to see that fraud departments are doing an excellent job in a period of unprecedented activity, accurately identifying frauds and preventing further losses.”

CIFAS claim that the escalation in the number of victims, identity fraud and facility takeovers shows that the economic slowdown goes hand in hand with the rise in fraud.

“The recession has an impact throughout society. Fraudsters will not let this stop them,” warned Peter Hurst, CIFAS chief executive. “The rise in the number of victims, and these very specific types of fraud demonstrate that fraudsters have no regard for economic, social and personal fragility.”