Increase in credit card fraud in UK
Recession spawns boost in crime
By UK CreditCards.com
Credit card fraud and other financial scams are on the increase in the UK, new data suggest.
CIFAS, the fraud prevention service, said that across-the-board annual rises in volumes had been noted between January and June 2009.
Specifically, facility takeover fraud, which occurs when a con artist remotely hijacks account details from victims without their knowledge, increased by 40% year on year. Meanwhile, identity theft marked a still sharper yearly rise of 74%.
CIFAS' report also showed that application fraud, which is perpetrated when an applicant for a financial product deliberately lies during the application process, had declined by 25%.
Peter Hurst, chief executive at CIFAS, said that the recession had been a factor in the increases. "Personal desperation" caused by deteriorating finances was cited as a possible reason for a fraudster to turn to crime.
"The rise in the numbers of victims and these very specific types of fraud demonstrate that fraudsters have no regard for economic, social and personal fragility," he added.
Published: 3 August 2009
- Industry responds to FCA's proposal on persistent credit card debt – Here's what industry experts have to say about the FCA's proposal to help credit card consumers in "consistent debt" ...
- Open banking FAQs answered – What is the new "open banking" initiative, how will it work and how will it benefit you? ...
- FAQs on FCA proposal for helping consumers with persistent credit card debt – The FCA is suggesting new rules for credit card companies to help those with "persistent debt". Here's what you need to know ...