Nottingham, UK 05 May 2016 – The overall fraud rate during Q1 2016 continued to grow reaching 54 in 10,000 (compared to 45 in 10,000 during Q1 2015), spurred on by fraudsters focusing their efforts on current accounts and credit cards.
The latest Fraud Index from Experian has also revealed an increase in ID theft within mortgage applications. Historically, third party fraud has accounted for around 4 per cent of all mortgage application fraud. During Q1 2016, the proportion of mortgage fraud committed by ID thieves increased to 6 per cent, the highest since 2012.
Nick Mothershaw, fraud expert from Experian, commented: “The increase from 4 to 6 per cent is worrying. This is because third party mortgage fraud is very complex and not as easy to commit on a large scale as fraud related to other financial products, such as current accounts, can be. Because of the values involved, the impact on people’s lives can be devastating. In many cases, fraudsters have either hacked databases or intercepted emails between individuals and their solicitors. Large payments have been diverted and fraudsters have disappeared with the money. We’d urge anyone who has fallen victim to these kinds of scams to contact Action Fraud.
“We are also seeing an increase in impersonations of the deceased within mortgage fraud. Fraudsters use the ID of people who have recently passed away but who previously lived at a property.”
Other highlights include:
Nick said: “Our latest fraud rate represents the amount of fraud that has been detected and prevented. Fraudsters are not going to stop looking for new and evolving ways to scam people. Fraud itself is viewed by many organisations as one of the biggest threats they are facing. Regardless of size, they are being targeted and the individuals that they service are bearing the brunt as much as the organisations themselves are. Everyone has a responsibility and a role to play when it comes to tackling fraud.”
Notes to Editors
We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. We also help people to check their credit report and credit score, and protect against identity theft. In 2015, we were named by Forbes magazine as one of the ‘World’s Most Innovative Companies’.
We employ approximately 17,000 people in 37 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil. Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2015, was US$4.8 billion.