The takeover of customer accounts increased last year by 53 per cent from 2011. This means that data driven identity crimes now constitute the vast majority of all fraud in the UK. Analysis of fraud trends during 2012 by CIFAS reveals a five per cent increase in the overall level of fraud, when compared with the previous year. While the rate of the increase has slowed from 2011, further key findings present a more complex picture of the true state of the economic crime landscape in the UK.

Nearly 250,000 confirmed frauds were identified during 2012 by CIFAS members, the highest number of frauds ever recorded by members and over 150,000 cases had an identifiable victim. Identity fraud accounts for over 50 per cent of all frauds recorded in 2012. Frauds committed by the genuine account holder or applicant have all declined: the most notable being the decrease in fraudulent misuse of an account (misuse of facility fraud) which fell in 2012 by over 15 per cent from the record levels seen in 2011. There has also been a fall in proven false insurance claims and instances of individuals submitting false details or documents in support of an application.

CIFAS head of communications, Kate Beddington-Brown, comments: “Fraud is frequently described as a victimless crime, but this is far from the truth. Whether it is an individual being impersonated, or public and private organisations losing funds due to fraudulent applications and transactions, the net effect is that the economic squeeze gets worse. Fraud acts as an impediment to business recovery and damages cashflow for us all; as losses incurred inevitably get passed on to society at large. The increase in fraud levels, therefore, might be seen as organisations getting better at rooting out fraud, but the implications are clear: increased fraud levels mean that organisations and individuals face a bigger problem than ever before.”

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