Identity fraud attempts have doubled in the first half of this year from the last quarter of 2010, with attempts to defraud current accounts rocketing by 340%, according to statistics released by Experian.Identity fraudsters were responsible for eight in every 10,000 fraudulent applications made in UK financial services in the second quarter of this year, which was double the number recorded in the final quarter of 2010.
Overall levels of application fraud against UK financial services firms have now risen for the third consecutive quarter, with the latest increase driven by a 340% rise in current account identity fraud, from five to 22 in every 10,000 applications.
Experian also found that 18 in every 10,000 applications for automotive finance, credit cards, insurance, loans, mortgages, current accounts and savings products made in the second quarter of 2011 were fraudulent, a 5% rise on the previous quarter and a 9% annual increase.
Nick Mothershaw, director of identity and fraud at Experian UK & Ireland, said: “Identity fraud is back with a vengeance. We are witnessing a surge in the number of detected identity frauds, with current accounts the number one target in the UK. Fraudsters see the current account as an easier option, giving them a springboard for money laundering and from where they can also target more lucrative credit products such as mortgages, credit cards and loans.”
Over the same period the number of first-party fraud attempts – where a genuine individual misrepresents their circumstances – remained constant at 10 in every 10,000 applications.