Spotting fraud at postcode level

ID theft continues to be a nationwide challenge affecting consumers from all parts of Britain.

The inner-cities of Birmingham, Leeds, Manchester and Glasgow, continue to be particularly vulnerable. Isolated pockets of fraud hotspots in the Highlands, Wales, Devon, Cornwall and Hampshire, all reflect the way ghost-brokers are using low-risk postcodes to illegally sell insurance are now being detected.

Third-party fraud continues to be biased towards wealthier suburban areas – as clearly shown on the Greater London map – with virtually every commuter town around the M25 having disproportionately high levels of third-party fraud.

Analysis of 10 addresses in and around the same area of leafy Warwickshire, pointed to a suspected ghost-broking fraud. More than 60 suspicious insurance policy applications were detected as being made from just a handful of addresses – many from the same address but made by multiple applicants. But thanks to a combination of vigilance, analytics and technology, the fraudsters’ efforts were promptly shut down.

To find out more about emerging trends, spotting fraud networks, or the technology that can help you stay one step ahead of the fraudsters, simply click here.

Experian works 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.