Savings accounts fraud rates continue to rise

Savings accounts have seen a steady uplift in attempted fraud rates within the past two years. During the latter part of 2012, a total of 12 fraudulent applications in every 10,000 were detected – up from around eight in every 10,000 during 2011.

With interest rates continuing to be low, some first-party savers are now also attempting to make the most of their funds by applying for multiple numbers of ISAs.

It is clear third-party identity fraudsters also continue to be responsible for the vast majority (85%) of fraudulent activity in the savings sector as fraudsters try to use savings accounts as a Trojan horse, a sleeper product, or so-called savings mules, as a point of entry to other credit products.

ID theft remains prevalent with victims largely among the highest earners as they still represent the richest pickings for fraudsters.

For more information about this and other emerging fraud trends, click here to download our latest fraud report.