Significant strides in the fight against fraud, particularly when it comes to safeguarding customers against identity theft, continue to be made.
It is highlighted by the swing back to pre-downturn levels of detected ID theft that have been noted during the past 12 months.
But as more consumers access and apply for financial products across multiple channels, including online and mobile, fraud also continues to evolve.
It’s a trend that’s being underpinned by a combination of ID theft, false identities, organised gangs carefully developing fraud networks and account takeover – when a fraudster steals personal data to hijack an existing account.
The financial services sector is fighting back thanks to innovative working methods, critical analysis and technology.
Our new Fraud Report covers the how, who and where it’s taking place along with an overview of new and emerging trends. Below is a snapshot of the top 12:
1. Identity theft has risen 12 percentage points in the past year.
2. As a result, it now accounts for more than half of all detected frauds.
3. Current accounts are the fastest growing target for identity thieves.
4. Volume of recorded fraud attempts highlight improved detection by financial sector.
5. Around 50 frauds are now being detected per 10,000 cases – compared to 40 frauds detected per 10,000 cases in Q4 2013.
6. Third-party fraud accounts for 52 per cent of all detected cases.
7. The switch reflects a return to pre-downturn levels of ID theft when it last eclipsed consumer, or first-party fraud.
8. Similarly, detected first-party fraud, as a proportion of all frauds, has now decreased from 60 per cent of all fraud cases in Q4 2013, to 48 per cent of fraud cases.
9. First-party fraud continues to be most prevalent among mortgage products.
10. While cards remain the product most targeted by identity fraudsters.
11. The number of detected automotive finance frauds has maintained its steady decline – all in the face of record-breaking new car sales.
12. But as with other areas, it continues to be blighted by rising levels of ID theft.
To get your hands on a copy of the new report, simply click here.
We work very closely with National Hunter and the entire financial services sector to help prevent fraud and provide timely insight and analysis. The current position, emerging and likely trends are outlined, along with pro-active steps that can be taken to continue to stay one step ahead.