Credit card application fraud reached its highest-ever level on record last year, according to new figures.

Analysis by Experian found that credit card fraud jumped by 18 per cent in the final quarter of 2022, as fraudsters took advantage of people’s Personally Identifiable Information (PII) to take out credit and borrow in their name.

The consumer credit reporting agency said that the overall fraud rate was the highest it has recorded in 10 years.

Fraud in the loans space has more than doubled over the past two years, with the fraud rate in the fourth quarter among the highest seen in the past three years.

First-party fraud, where an individual gives false info or misrepresents their identity to access a product on more favourable terms, with no intention of paying it back - now makes up 27 per cent of all applications.

Experian said that figures suggest that households were looking to obtain additional borrowing over the Christmas period in order to cover costs.

Eduardo Castro, managing director of identity and fraud at Experian UK&I said that the latest figures show the of the fraud epidemic facing consumers and financial services companies.

“The rise in first party fraud is also striking, as it suggests that households are misrepresenting their financial situation to meet additional costs, or even cover everyday expenditure,” continued Castro.

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