CIFAS states that, in the first five months of 2012, frauds recorded against plastic card accounts increased by 28% compared with the same period in 2011.
Card related identity fraud (the impersonation of a victim or the use of a fictitious identity) increased by nearly 20% while facility takeover fraud (or account takeover) increased by an astonishing 84%.
No less than 86% of all plastic card frauds were attempted (or carried out) online.
Financial crimes facilitated by a fraudster’s use of the identity details of an innocent victim can take numerous guises: from applying for products and services by impersonating the victim trough hto using the victim’s accounts to pay for goods or emptying a victim’s account of available funds.
In order to carry out these frauds, however, fraudsters need to have obtained the necessary data (from personal details like dates of birth and addresses, etc to e-mail addresses, account numbers or passwords that enable them to circumvent security measures).
CIFAS’ communications manager Richard Hurley commented: “Fraudsters who impersonate a victim or hijack an account can only do so with the right information. These figures emphasise the need for individuals to review their own security and for businesses to improve the processes that they put in place, both physically and online.”
The online threat
With 86% of all frauds against plastic cards carried out online, CIFAS believes it’s hard not to see a worrying link to the Internet as a contributory factor.
As the volume of online transactions increases, it’s inevitable that fraud will, too: meaning that a continuous reassessment of security measures is required.
Hurley noted: “Whether it be through malicious computer software or data hacking, criminals are obviously obtaining the personal data that they require to commit fraud. On that basis, it’s of paramount importance that software and computer manufacturers, individuals, businesses and the police all take this threat seriously. If we, collectively, do not, the continuing migration towards transacting business online will simply become a licence for fraudsters to continue their criminal gains.”
As far as Hurley’s concerned, increases seen in these figures are proof that organisations are becoming better at identifying, preventing and recording fraud.
“This only underlines the work that still needs to be done,” he explained. “As more fraud is uncovered, a strong message is sent out to individuals and businesses alike: invest time in protecting your data and ensuring that your information is as safe as possible, particularly in the online space. Otherwise, you risk becoming the next victim of this growing problem.”