New statistics reveal increase in identity fraud

Analysis from Experian reveals a 37% year-on-year increase in confirmed fraud cases identified by the Experian Victims of Fraud service in 2013. Of 20,000 suspected fraud cases investigated, 12,740 cases were confirmed to be fraudulent, with marked increases in the following types of fraud:

Account takeover fraud increased by a staggering 123% from 110 confirmed cases a month in 2012 to 246 in 2013;

Loan fraud increased by 115% from 78 to 168 a month;

Mobile phone/communications account-related fraud increased 84% year-on-year, from 93 cases a month to 171.
 
Additional independent research into consumer online behaviour* conducted on behalf of Experian suggests that while in general Britons are improving in protecting their online identities, many have not grasped the importance of following the basics in online ID protection. This could make it easier for fraudsters to get access to their personally-identifiable information online.
 
This research showed that, on average, Britons have 19 online accounts each (down 27% YoY) with an average of seven different passwords
 
(an increase of two YoY). However, one in 10 never changes their online passwords and one in 20 uses the same passwords for all of their online accounts. Two thirds of those surveyed also admit to having multiple inactive online accounts, including social networks (26%), email (18%) and retail accounts (21%).
 
Pete Turner, Managing Director of Experian Consumer Services UK&I, commented: “Although we have witnessed an increase in those seeking support having become victims of fraud, the good news is improved fraud detection services are catching more and more fraudulent credit applications before many suffer financial loss. Fraud is not just about financial loss; if your identity is compromised, it takes on average 246 days to discover you have become a victim of fraud. That’s a long time for a criminal to have and use your identity for their gain, and potentially harm your reputation and credit rating.”
 
Further insight from the Experian Victims of Fraud team:

77% of confirmed fraud cases identified by the Experian Victims of Fraud team were discovered by the victim spotting irregular credit applications on their credit report;

One in 10 victims became aware when they were notified of a new credit agreement by the lender or company targeted by the fraudster;

8% found out when they received a debt collection notification looking to recover debt taken out fraudulently in their names.
 
Top five things that fraudsters look for and how you can better protect yourself:

1. Both will state your full name, address, account number and even your balance and overdraft limit.

Always shred financial documentation after use. When banking online, use strong passwords with more than 8 characters (ideally 10-12), and avoid using words from the dictionary.  Use two-factor authentication where possible and log out when finished.

2. The security code on the back of your credit card — Designed to be used to prove you are in possession of the card when you buy online or by mail or telephone order.

When using your debit or credit card online, ensure the site is encrypted (indicated by a padlock symbol) and that the site you are paying is legitimate.

3. Smartphones can hold lots of information, including cached passwords to online accounts and apps, contacts and other personal information.

Always use a home screen lock. Don’t store account names and passwords or digital pictures of your passport.  Also remember that public Wi-Fi networks are riskier than private networks, so be careful with the information you access when out and about.

4. Social media sites can reveal your date of birth, email address and possibly even enough information which could help in identifying possible PIN and/or passwords.

Consider how much information you really need to share. Don’t add people you don’t know and remember seemingly unimportant information like your children’s or even pet’s names could all be misused if seen by the wrong person.

5. Your email account is linked to many other accounts and can hold massive amounts of personally-identifiable information.

Beware of phishing– if an email seems suspicious, don’t open it. A legitimate company will never ask for your account details via email. If contacts have received emails from you that you did not send, change all your online passwords immediately.
 
If you feel that you may not have been sufficiently vigilant in protecting your online identity, services like Experian’s web monitoring tool available through Experian CreditExpert monitor the wider web for mentions of your personal information 24/7, sending you an instant notification if your information appears somewhere new online.  People who think they have become victims of identity fraud should notify the police, their bank and check their credit report. Experian's Victims of Fraud service is available free through CreditExpert, and has a dedicated team to give expert advice and support tailored to particular circumstances.