Experian Data Shows Identity Fraud Attempts Double In First Half Of 2011
Released on: October 20, 2011, 1:52 pm
Experian, the global information services company, has
released its latest Fraud Index which reveals that identity fraud
attempts doubled in the first half of 2011, compared to Q4 in 2010.
This pushed up the overall level of application fraud attempted against
UK financial services firms for the third successive quarter. Experian
also predicts a nine per cent increase in application fraud attempts
The analysis, published at Experian's annual Identity & Fraud Forum, reveals that
identity fraudsters were responsible for eight in every 10,000 applications made in
Q2 2011 (April - June 2011), double the number of fraudulent applications recorded
in the final quarter of 2010. This was driven by a 340% increase in current account
identity fraud, from five to 22 in every 10,000 applications.
Experian's analysis also highlights that 18 in every 10,000 applications for
automotive finance, credit cards, insurance, loans, mortgages, current accounts and
savings products made in the second quarter of 2011 were found to be fraudulent.
These were five per cent higher than January to March 2011, and up nine per cent on
Over the same period the number of first-party fraud attempts - where a genuine
individual misrepresents their circumstances - remained constant at 10 in every
42 in every 10,000 applications for current accounts were detected as fraudulent
between April and June 2011, up 20 per cent on the first three months of 2011 and 59
per cent higher than during Q2 2010. For the second quarter in a row, current
accounts were the most targeted financial product by fraudsters.
Experian's Fraud Index collects data from both the National Hunter and Insurance
Hunter fraud prevention systems, which
are managed by Experian on behalf of its clients. Both systems provide a way for
financial organisations to protect against fraud by comparing applications with
previously submitted ones and pinpointing inconsistencies.
Nick Mothershaw, Director of Identity & Fraud at Experian UK & Ireland, commented: "Identity fraud is back with a vengeance. Our analysis shows that we are witnessing
a surge in the number of detected identity frauds, with current accounts the number
one target in the UK. Fraudsters see the current account as an easier option, giving
them a springboard for money laundering and from where they can also target more
lucrative credit products such as mortgages, credit cards and loans."
Notes to Editors:
*Predictions based on Experian analysis of data from National Hunter anti-fraud data
Experian is the leading global information services company, providing data and analytical tools to clients in more than 80 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making, as well as offering ID verification. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian's Payments Gateway is the UK's leading Bacstel-IP solution used by 25 of the top Bacs Users by transactional volume and is the Bacs software of choice for some of the largest and most innovative Bacs originators.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of
the FTSE 100 index. Total revenue for the year ended 31 March 2011 was US$4.2
billion. Experian employs approximately 15,000 people in 41 countries and has its
corporate headquarters in Dublin, Ireland, with operational headquarters in
Nottingham, UK; California, US; and São Paulo, Brazil.
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