Credit, Collections & Insolvency News
A record number of cases were filed to the National Fraud Database (NFD) in the first six months of 2024 – over 214,000 in total, representing a 15% increase compared to the same period in 2023 according to fraud prevention service, Cifas.
The data, recorded between January-June 2024, reveals the tactics favoured by fraudsters including spoofing, brand impersonations, phishing campaigns, and using AI technologies to facilitate data harvesting and social engineering.
Cases of Facility (Account) Takeover filed to the NFD were up 99% compared to the same period in 2023 – over 37,000 cases in total. The most impacted age group were those aged over 61 (25%), closely followed by 41-50-year-olds (23%). Online retail and telecoms sectors represent 36% and 40% (respectively) of all facility takeover cases.
Phishing remains a common tactic. Members report that organised crime groups are executing high-quality and convincing brand impersonations – and using Remote Access Technology (RAT) software to take control of a consumer’s device while pretending to be customer service support – to dupe people into divulging sensitive data. Cifas intelligence also shows criminals are increasingly aware of counter-fraud controls used by businesses and regularly change tactics to avoid detection.
Over 127,000 cases of identity fraud were recorded between January-June 2024 – a 4% increase on 2023. This was largely driven by significant increases in impersonation fraud in relation to mobile phones (up 102%), personal store cards (up 59%) and personal current accounts (up 19%).
Social engineering tactics using sophisticated spoofing and brand impersonation techniques are recurring themes in the cases of identity fraud filed to the NFD. In some cases, criminals have researched LinkedIn profiles to impersonate genuine employees at financial institutions and encouraged victims to divulge personal data or transfer funds.
Over 37,000 cases were recorded in the first half of 2024 – a 9% rise compared to 2023. This is nearly one-fifth of all cases filed to the NFD (18%).
Misuse of company accounts rose 51% and personal loans increased by 109%. Cifas members reported that individuals opened credit accounts with no intention of making payments – a common driver being the cost-of-living pressures. In total, more than 11,000 false application cases were made to the NFD (up 21%).
Mike Haley, CEO of Cifas, said “With almost 40% of all reported crime a fraud, our data and intelligence demonstrates how concerned organisations should be at the ease with which criminals are able to obtain the tools to commit fraud at scale. Fraudsters continue to exploit new technologies such as AI and ‘fraud-as-a-service’ and abuse the popularity of social media platforms to defraud consumers and business.
“Combatting fraud must be a national priority. It is only through greater collaboration and sharing critical data and intelligence across all sectors including law enforcement, the private sector and government agencies, that we will be able to get on top of the UK’s fraud emergency and keep business and people safe.”