Last year was punctuated by a litany of high-profile frauds, ID thefts and data breaches. We know the fraudsters are flexible, fast, relentless and inventive. They’re also indiscriminate in who they target and will often simply opt for the easiest opportunities. Here is brief snapshot of the top 10 fraud trends already noted this year.
1. The rate of detected fraud has risen from 24 to 35 frauds per 10,000 applications.
2. The latest fraud data also shows a significant rise in the detection of identity theft as a proportion of all frauds. In fact identity theft – so-called third-party fraud – now accounts for nearly half (47 per cent) of all fraud cases detected and prevented during the past year – and it has risen from 30 per cent of all detected frauds in 2013.
3. Third-party fraud was found to be most prevalent in applications for cards, savings and loans products.
4. But the latest fraud data shows that fraud prevention is also proving more effective than ever.
5. Overall, mortgage applications were the highest ranked product in terms of detected fraud. In August 2013, 82 out of every 10,000 mortgage applications were found to be fraudulent – compared to 79 out of every 10,000 applications in August 2014.
6. Current account applications saw the largest year-on-year rise in detected fraud, as the number of cases uncovered as fraudulent increased by 60 per cent from August 2013 to August 2014.
7. Current account application fraud is the second highest ranked product for detected fraud among financial services products. In August 2014, 56 in every 10,000 current account applications were found to be fraudulent – compared to 35 in every 10,000 applications for August 2013.
8. Card application fraud was the third highest detected fraud as at August 2014, with 30 in every 10,000 applications found to be fraudulent. This compares to 16 in every 10,000 applications in August 2013 – showing a significant 47 per cent year-on-year rise in detected card application fraud.
9. Of those applications uncovered as fraudulent in August 2014, around 79 per cent were uncovered as third-party fraud attempts, making card application fraud the primary target for identity thieves.
10. Insurance policy fraud continues to be dominated by consumers – or first-parties.