Divided into several easy-to-read sections, Fraudscape gives an overview of (and examines) identity-related crime (frauds related to the misuse and hijack of an innocent party’s identity details), geography and location, first party fraud (frauds committed by the genuine account holder) and fraud in terms of the products targeted.
2011 witnessed more frauds (236,516) recorded by CIFAS members than in any previous year. This represents a 9% increase from 2010, confirming that the decrease noted in 2010 was a one-time ‘blip’ in the context of an ever-growing fraud problem.
The use of a completely fictitious identity and the misuse of another party’s identity details (ie identity fraud) or the use of data to hijack a victim’s account (facility takeover fraud) accounted for a staggering 58% of all the frauds identified in 2011.
Plastic card accounts, bank accounts and communications products were the products which experienced increased attention from fraudsters in 2011, while plastic card accounts remained the firm favourite for hijacking by a fraudster (an 18.4% increase from 2010).
The importance of data to the organised fraudster, the methods used to obtain data, the popularity of the Internet as a means to commit fraud and the fraudsters’ favoured targets are also comprehensively examined in Fraudscape.
Location, location, location
In collaboration with Ordnance Survey, Fraudscape also presents a series of maps revealing where victims were targeted, and where frauds were concentrated in 2011.
While London and the South East remained the centre of attention for all frauds, analysis confirms that identity fraud victims are more likely to be targeted for the nature of the locations in which they live (frequently urban areas), while account takeover victims are found proportionately in more sparsely populated areas.
Other areas of interest include:
- why were Daventry and Monmouthshire locals more likely to fall victim to account takeover fraud?
- what is significant about the Western Isles in terms of fraud?
- did you know that Coventry, Luton, Peterborough, Glasgow and the Manchester area were also significant fraud hotspots in the UK?
Fraud: it’s not just lies told with your details
First party fraud (fraud committed by the genuine account holder) remains as potent a problem as identity-related crime, and Fraudscape examines this in several ways.
Notably, the 13% increase in the fraudulent misuse of accounts (ie misuse of facility fraud) – was driven as much by the economic climate as the desire to spend funds and retain aspirational accounts/services (eg smartphones).
Attention is also drawn to the increasing misuse of bank accounts and the ‘money mules’ targeted by organised criminals, as well as the particular issues faced by payday lenders.
CIFAS also reveals the range of lies told in applications (such as withholding address and credit history details or false employment details), the differences between home and motor insurance frauds being committed and how men may be more likely to commit fraud but how women seem to favour frauds against mail order and communications providers.
A question of product
Finally, Fraudscape offers an insight into the types of product favoured for specific types of fraud.
While bank accounts remain the most frequently targeted product (up by over 4% from 2010), communications and loan products have experienced surges in fraudulent activity. Plastic card accounts experienced more identity-related crime than they did in 2010.
CIFAS communications manager Richard Hurley said: “Fraud is a complex subject, affected by a wide range of factors. It’s a threat both to organisations and individuals. We examine the ways in which your details can be used, and the lies being told to organisations. As a result, we’re able to cast light on the murky realities of the fraud problem and strengthen the call for more public and private sector organisations to act responsibly and share data to prevent fraud before having to recover losses.”