Why Fraud Rates Rose In 2009

CIFAS, the fraud prevention service in the UK, havesafe from fraudsters. Bank accounts, mail order and
conducted a recent study which has shown thatcommunications are named by CIFAS as the highest
cases of fraud are rose in number in 2009.increasing areas of fraud.
The economic decline could be the cause of manyThese untoward statistics have been said to be a
more people becoming inclined to commit fraudulentresult of the stricter scrutiny of credit card applications
offences.which has occurred during the credit crunch.
Bank account fraud, it has been revealed in the study,It is true that at present only one out of three credit
has risen by a whole 10%: 80,105 cases were reportedcard applications is actually accepted. Because of this
in 2009 compared to 72,988 the year before.scrutiny, fraudsters are unwilling to try their luck with
Conversely, the figures also show that plastic cardcredit cards and may be turning to other fields to use
fraud cases are bizarrely going in the other directiontheir expertise. The fact that application fraud in this
and decreasing.category has risen decreased by 36%, which is the
In marked contrast to the other figures, fraud involvingbiggest decrease in all of the credit card fraud areas,
plastic had actually declined since 2008. Credit cardfurther evidences this.
figures dropped by 9.98%, almost the same figureAdded protection which has been introduced to
which bank account fraud rose by.protect cards during internet transactions is another
Identity fraud is the most common kind of credit cardmain reason identified for the decrease in the credit
fraud, which makes it surprising that even here therecard category and is likely to be of interest to
was evidence of a decrease in cases. In all the otherconsumers looking to compare credit cards.
categories, identity fraud showed a definite rise.For example, applications to the Barclaycard Platinum
'Fraudscape' was the name given to this report,with Balance Transfer credit cards could be boosted
conducted by CIFAS. The organisation have examinedby the active fraud monitoring that comes with the
the cases of financial crime over 2008 and 2009 andcard.
compiled this report in order to better examine theThere are also more recorded 'current address'
trends which have become apparent over the lastfrauds, where the current address of the victim is
two years.used, within this category. Although the figures are
In addition to a 10% overall rise, a 32% increase inlower, current addresses have been more frequently
identity fraud was also shown.used, rather than previous ones. This could signify a
Identity fraud (or identity theft) refers to the cases inmore cunning and adaptable average fraudster.
which a false name or the existing name of anIn some cases, the authenticity of the figures has been
unaware individual is used by the fraudster. Althoughchallenged. Some argue that some of these figures
middle-aged men are most commonly targeted inare simply consumers who claim to have been victims
cases of identity fraud, the CIFAS study showed anof fraud but have secretly actually spent the money
increase in female victims, meaning that noone is reallythemselves.