Card fraud is on the rise.
In January 2015, the credit card fraud rate stood at 36 in every 10,000 applications, but increased rapidly during the course of the following 12 months.
Right now it stands at around 50 in every 10,000 applications.
The vast majority are a combination of stolen personal details from a current address, fake documents, or applications made via fake online identities, an area which has seen the most significant growth.
False payments – the use of stolen bank account details as an instrument to set up a direct debit – also continue to pose significant challenges, which may call into question the levels of online verification being carried out. To find out how to safeguard you and you customers from ID theft, please click here. To view our online fraud dashboard and see the latest emerging trends, please click here.
We work closely with National Hunter and Insurance Hunter, the UK’s leading fraud prevention systems, operated by Experian on behalf of members. The systems enable financial institutions to cross-match applications against more than 100 million previous application records in order to spot commonalities and anomalies that are potentially indicative of fraud for further investigation.