Card fraud continues to steadily rise – from 12 in every 10,000 fraudulent applications in 2011 to 15 in every 10,000 in 2012, representing an increase of around a quarter compared to a year ago.
In the past, third-party fraudsters have historically been responsible for the majority of credit card fraud. But Experian’s analysis has shown that increasing numbers of first-party fraudsters have been targeting cards during the past 18 months as they attempt to get their hands on all available forms of credit.
During last year, just over half (53%) of all detected frauds were perpetrated by first parties, which typically involved attempting to hide adverse credit histories in the application process.
Credit cards clearly continue to be regarded as a route to lucrative funds by fraudsters. It may be no coincidence that a recent wave of competitive, low interest credit card offers by a number of providers may have prompted opportunists to try to get their hands on a perceived easing in lending criteria.
As in the past three years, there are notable seasonal spikes and upticks around Christmas, as first-party fraudsters attempt to get credit around the festive season. During 2012, there has also been a modest swing from first, back to third-party frauds.
For more information, in-depth analysis and emerging trends, click here to download the latest copy of our Fraud Report.