Festive season Identity Fraud set to soar

Experian is a market leader in fraud prevention technology and has prevented more than £9.5bn in fraudulent applications over the last five years.

London, UK – 25 November 2024: Consumers and businesses are being warned to protect personal information amid a surge in identity theft during the Christmas period.

New analysis from Experian reveals that fraud rates in the final three months of the year have risen by more than a fifth (21%) in the last three years. Amongst the hustle and bustle of the festive season in which British consumers are set to spend £28 billion, online criminals will be looking out for more ways to exploit people’s information to commit fraud and take out financial products like credit cards and loans in their name.

The study also reveals:

·       83% of all fraud committed in the run up to Christmas 2023 was identity fraud

·       Those most likely to fall victims in the Christmas period were younger people aged 25-39

·       Identity fraud cases rose by 12.5% in the first six months of the year, when compared to the same period in 2023

Paul Weathersby, chief product officer, identity & fraud, Experian UK&I, said: “Our figures reveal that the UK fraud epidemic is showing no signs of abating, impacting victims of all ages, especially during Christmas.

“Personal information is readily available for purchase on the dark web and fraudsters are typically more active during these months, using a multi-channel approach to seduce people into giving up their information through emails, text messages and phone calls.

“As we all enjoy the Christmas festivities, it’s crucial to remain vigilant. To avoid becoming another victim, people must think twice when using their information to buy presents and gifts.”

Ahead of the Christmas holidays, Experian is raising awareness about the dangers of identity fraud and importance of keeping your information safe.

It has launched its latest Christmas fraud awareness social media campaign. Offering consumer tips on how to keep their personal information safe, the campaign video features Father Christmas deploying his helpful ‘Elf Squad’ in order to protect his identity.

Figures from UK Finance reveal that Authorised Push Payment (APP) fraud, where a victim is tricked – typically through a phone call, text message, or email – into transferring money to a fraudster cost consumers £213 million in the first six months of 2024, with nearly three quarters (72%) of cases originating online.

However, financial services companies stopped £710 million of unauthorised fraud thanks to increasingly sophisticated fraud-prevention technology.

Weathersby adds: “Financial services companies take fraud extremely seriously and it’s positive to see new technology and services having a real impact in fraud prevention.

“However, the challenge is always evolving as criminals look for new ways to exploit people’s information, so there is no room for complacency.”

Experian is a market leader in fraud prevention technology and has prevented more than £9.5bn in fraudulent applications over the last five years.

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NOTES

To watch our latest Christmas Film, ‘Elf Squad’ visit: experian.co.uk/Santa

How to protect yourself from identity fraud

·       Don’t share too much personal information on social media, such as mother’s maiden name, home address or when you’re away. It’s also important make sure your security and privacy settings are up to date across all platforms and devices.

·       When you move home, always re-register on the electoral roll as soon as you can. This helps ensure your details are no longer registered at your previous address, making it more difficult for a fraudster to commit fraud there using your identity. It’s a good idea to set up mail redirection for a while too.

·       Make sure you have a strong, unique password for each online account you have. This means fraudsters are less likely to gain access to multiple accounts, even if they do manage to compromise one account.

·       Ensure your home Wi-Fi has a strong password, never sign in to password-protected accounts on unsecured public Wi-Fi and make sure you have up-to-date antivirus software

·       If you receive emails or text messages, always be cautious about attachments, links or telephone numbers. If in doubt, visit the firm’s website independently or contact them using details you already have, such as the telephone number on the back of any payment card.

·       Be careful when sending money to third parties from your bank account. Consider starting with a token payment, such as £1, and then getting confirmation of safe receipt from the genuine recipient before transferring the remainder.

·       Keep your private documents safe at home and be careful traveling with important ID documents. Always destroy mail or documents with personal information once no longer needed.

·       Check your free credit report at least once a year and keep an eye out for anything suspicious. Your report will show any recent applications for credit or other new accounts. You can also monitor your free Experian Credit Score. Any significant score changes could signify fraud.

What to do if you’re a victim of ID fraud

·       Check your free statutory credit report, with all three credit reference agencies. You can then identify all information that does not belong to you and raise the alarm.

·       Contact any relevant lenders to inform them of the fraudulent information

·       Ask Experian, or another credit reference agency, to dispute the fraudulent information with all relevant companies and lenders. A notice of dispute will also be added to the fraudulent information.

·       Add a password to your credit report. this is called a ‘Password Notice of Correction’ and should be unique and only known to you.

·       Add self-registration details with Cifas, the UK’s fraud prevention service. A credit reference agency can sometimes do this for you.

·       Contact Action Fraud, the UK's national reporting centre for fraud and cybercrime.

About Experian

Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realise their financial goals and help them to save time and money.

We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.

We invest in talented people and new dvanced technologies to unlock the power of data and innovate. As a FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 22,500 people across 32 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.

 

 

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