Identity fraud rose by 20% in 2009 compared to 2008, and the number of victims is likely to increase by even more this year, according to credit agency Experian.
Over two thirds of the cases in 2009 came in the second half of the year, with business owners and company directors most at risk. But Experian are warning that identity fraud is going to become more mainstream.
Attempted fraud is on the increase and the nature of the threat is changing. Organised criminal fraudsters are moving into the mass-market, looking beyond those with obvious wealth towards lower-value but more vulnerable targets.
High earners have generally been the main targets, because of the returns they can give, and still are most at risk, but fraudsters are increasingly targeting lower earners in larger volumes
Whilst identity fraud is on the rise, there has also been a rise in people manipulating their own information for financial gain.
Experian’s report also reveals that first-party fraud, which occurs when individuals manipulate their own information attempting to obtain financial services they are not entitled to, surged from around 28% of all fraud cases in the first three quarters of 2009 to 46% in the fourth quarter, at a time when identity fraud levels also grew.
Just blame the recession for loads of people trying to fiddle their loan and credit card applications.
photo credit: Adam UXB Smith
Sadly, identity fraud is the sort of crime that too many people pay no heed to until they become a victim. Thankfully there are some sensible precautions that individuals can take to reduce the risks as well as keeping an eye on their credit report to see any fraudulent activity before it becomes a real issue.