Economic Slowdown Causes Increase In Fraud Levels
Consumers are being advised to remain vigilant and keep a check on their bank and savings accounts and look out for signs of identity fraud, this is the warning from the Fraud Prevention Service, CIFAS who have recently released their latest statistics, which show an alarming increase in cases of fraud, which they claim is due to the effects of the current recession.
According to the figures, there has been a 40 per cent rise in cases of identity fraud and false personal loan applications, a 75 per cent increase in individual’s bank accounts being taken over and an increase in the number of fraudulent insurance claims.
The number of cases of identity fraud has increased significantly over the course of last year, as individuals steal another person’s identity and use their details to obtain any number of products and services. One of the most common areas for identity fraud is to apply for credit in someone else’s name on a personal loan or a credit card, using a more credit worthy individual’s details to be accepted for the loan.
Take over fraud has seen the biggest increase, where access is gained to another persons bank account, or savings and money is withdrawn. Once again a fraudster then has the opportunity to apply online for personal loans and credit cards in the victim’s name.
The other area which has seen a continued and dramatic increase is that of false insurance claims. As a growing number of homeowners feel the pinch on their financial situation, many decide to submit either a completely false claim to their insurers, or greatly exaggerate a small claim. Many people may not view such activities in the same league as those described above, but don’t be fooled, this is still fraud and insurance companies are keeping a close eye out for suspicious claims.
