Identity fraud rose by more than a fifth this year, “amid warnings that fraudulent activity is set to peak over the Christmas shopping period.”
New analysis from Experian reveals “that identity fraud rose by 22% in 2023, when compared to 2022, with the trend expected to be at its peak over November and December.”
Last year, the fraud rate for credit card fraud “was 43% higher in November, compared to the monthly average rate.”
Fraudsters will typically deploy a multi-channel approach “to seduce people into giving up their personal information through emails, text messages and phone calls.”
Personal information is readily available “for purchase on the Dark Web, giving criminals an easy opportunity to attempt to access credit using stolen details.”
Eduardo Castro, Managing Director Identity and Fraud, Experian UK&I, said:
“The cost of being scammed by a fraudster is not just financial, as victims experience substantial distress too. Identity theft and fraud is increasingly prevalent in the UK, and it’s never been more important for people to think twice about their personal information. All unsolicited messages should be approached cautiously unless they are sure it’s genuine, and if there is an offer online which seems too good to be true, it more than likely is.”
Figures from UK Finance reveal fraud “cost British consumers £580 million in the first six months of 2023.”
Authorized Push Payment (APP) fraud, “where a victim is tricked – typically through a phone call, text message, or email – into transferring money to a fraudster, has more incidents of fraud than any other crime type in the UK and costs consumers £239 million.”
However, there are signs of encouragement, “with advanced anti-fraud prevention systems deployed by banks preventing £651 million from being lost.”
To encourage people to look after their personal information and “for businesses to think about their fraud risk, Experian has launched a new social media awareness campaign, featuring a scammed Father Christmas.”
He calls in at his local police station to “report his identity being stolen, revealing to the sympathetic but confused police officer that he’s been careless with his personal information.”
Castro adds:
“Better public awareness of scams and new technology being deployed by businesses across multiple sectors means criminals are facing new challenges. However, fraudsters are always looking at new ways to exploit people’s information. The fraud epidemic is a constantly evolving battle, so there is no room for complacency when it comes to prevention.”