"The absolute volume of fraud is still frighteningly high and much more still needs to be done to reduce its prevalence, including greater collaboration and sharing of fraud risk data "
Its figures found that young people are most at risk of acting as ‘money mules’ and more than a third of bank account takeover victims are over 60.
There was a 27% increase in 14-24 year olds becoming money mules and overall bank accounts identified as being used as mule accounts were up by 11%.
Cifas says the main difference this year is that the increase is not down to rises in fraudulent applications for plastic cards and bank accounts, but due to targeting of other sectors.
This ‘retargeting’ by identity fraudsters can be seen as a shift towards more accessible products, such as mobile phone contracts, online retail accounts, retail credit loans and short-term loans.
Cifas deputy chief executive, Mike Haley, said: “It’s clear from this year’s Fraudscape that fraud in the UK continues to evolve. As some targets become harder to crack, criminals turn to what they consider are softer targets. Fortunately, many of these sectors such as telecoms and insurance, share their fraud data through Cifas and are detecting more fraud attempts. As fraudsters see their attempts to obtain these products become more difficult, the question will arise about where they will target next.
“The small reduction in the overall number of detected frauds is welcome but it’s hard to say whether we are beginning to see the turning of the tide. The absolute volume of fraud is still frighteningly high and much more still needs to be done to reduce its prevalence, including greater collaboration and sharing of fraud risk data between industry, government, and law enforcement. Working together, organisations who are members of Cifas prevented over £1 billion worth of fraud last year and Cifas will continue to lead the way in the fight against fraud and financial crime.”
Conor Burns MP, chair of the All-Party Parliamentary Group on Financial Crime and Scamming, added: “Fraud is the 21st century volume crime and the issue is not going to go away. With more and more people sharing data, transacting, setting up businesses, dating and chatting online this trend is only going to continue.
“That is why I set up the All-Party Parliamentary Group on Financial Crime and Scamming last year, to raise awareness of this issue within Parliament. Fraudscape shows how prevalent this crime is and all of us – government, industry, third sector and individuals have a role and responsibility in preventing it.”
