Experian research reveals that more fraud is being detected and prevented than a year ago, especially third party fraud, as lenders become even more effective in tackling identity theft. Its latest data shows a significant rise in the detection of identity theft as a proportion of all frauds. Third party fraud now accounts for 47 per cent of all cases detected and prevented during the last year and has risen from 30 per cent of all detected frauds in 2013.

It was found to be most prevalent in applications for cards, savings and loans products whereas first party fraud was the most prevalent across mortgage and automotive finance applications. Over the last 12 months 35 frauds were detected per 10,000 applications in August, compared with just 24 cases detected per 10,000 applications in August 2013. This rate peaked in March 2014, with 43 out of every 10,000 applications detected as fraudulent.

Nick Mothershaw, UK&I director of identity & fraud at Experian, comments: “Our latest analysis shows the financial services industry is making continued and significant progress in the fight against fraud, and suggests financial services providers are investing in fraud detection and prevention measures in order to better protect customers from identity thieves. The significant increase in detected and prevented third party fraud in particular shows how far providers have come in becoming wiser to the tricks of identity thieves, although recent high profile instances of data theft show that there is still much to be done.”

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