Identity fraud costing the UK an estimated £1.8bn every year

Identity fraud continues to grow and now costs the UK an estimated £1.8 billion each year. It is one of the most common case types filed to the Cifa sNational Fraud Database by its 750-plus industry members – accounting for 64% of all filings in 2023 with more than 237,000 identity fraud cases recorded.

Industry contributors are urging the Government to take the problem seriously and prioritise the issue in its forthcoming Fraud Strategy.

As businesses fight attacks on their services from organised crime groups, the Cifas is asking the Government to enable industry access to the information they need to protect themselves. Allowing verification of Government-issued identity documents and allowing the sharing of intelligence by the Public Sector on false identity documents used in the defrauding of public bodies will be key to combatting the threat from fraudsters.

Cifas’s report makes a number of recommendations including a review of the law on identity theft to ensure it provides an adequate deterrent to fraudsters. Greater law enforcement action against the criminal marketplaces where the tools to commit mass-scale identity fraud are sold. Assurances that the Government’s new digital identity scheme holds identity providers accountable for counter-fraud controls and victim support.

Kathryn Westmore, Senior Research Fellow at RUSI, said “Identity fraud is a pervasive threat, facilitating not just fraud for financial gain but many other types of serious criminal activity. Driven by new technologies and enhanced digitalisation, the sheer scale of the issue is ever-increasing and demands that the UK prioritises its response.”

Helena Wood, Director of Public Policy at Cifas and co-author of the report, said “Identity fraud victims suffer considerable administrative, financial, and also psychological harms following the fraudulent use of their identity. However, there is no support when repairing the damage that has been done. It is imperative that the Government’s Fraud Strategy treats this threat with the seriousness it deserves.”