Worrying rise in both identity and card fraud against consumers

28 January 2010

According to a report by the National Fraud Authority, fraud in all its guises costs the UK £30bn each year. Life assistance company CPP has identified a growing number of fraudulent claims, particularly for mobile phone insurance and a worrying rise in both identity and card fraud against consumers.

Research commissioned by CPP looking into fraud found that:
o 5% of Brits are likely to regularly submit false insurance claims
o 59% of Brits who don't know that reporting a lost phone as stolen is against the law and could result in a police conviction and criminal record
o 26% of cardholders in the UK have been a victim of card fraud
o Online fraud has affected 32% of victims of card fraud
o Account takeover fraud, where a fraudster targets an existing bank account, accounts for 40% of all cases reported to CPP

Sarah Blaney, fraud expert from CPP says: “The National Fraud Authority report, along with our own research, shows that fraud in all its guises is rising, as fraudsters look to exploit new avenues for their crimes. Not only have we have seen fraudulent claims for mobile phones grow rapidly in the last year, we are also seeing worrying increases in attacks against consumers through card and identity fraud. CPP is committed to fighting fraud and we’re urging all consumers to be alert to the dangers posed by fraudsters.”

CPP’s top tips to reduce the chances of falling victim to card and identity fraud:
o Don’t carry multiple debit/credit cards in a wallet
o Don’t carry debit/credit cards loose in a bag or pocket
o Don’t let a waiter /shop assistant take your debit/credit card out of sight
o Don't write down PIN numbers, passwords, user names unless you absolutely have to do so, and if you do, keep them very secure and to yourself
o Always check your receipts against your statements and contact your bank if you notice anything suspicious
o Make sure your post is secure and know when to expect your credit card, utility bills and bank statements - if they don't turn up, ring up and ask why
o Keep your personal information safe. If someone asks for your personal details ask yourself why they would need them. This even applies to any online enquiries
o If you are going to throw away post with your personal details shred it first - this even includes junk mail
o Remember the golden rule: identity thieves are experts at spotting an opportunity to steal your identity and all they need are a few personal details