ID of 478 bank customers stolen daily
NEARLY 500 bank customers a day are having their identities stolen and used to take out loans, credit cards and mortgages, a report reveals.
Criminals are opening bank accounts and setting up car cover and phone contracts in their victims’ names and running up huge bills, the financial crime prevention organisation Cifas warned.
Last year there were 174,523 cases of identity fraud – or 478 a day – which is a 125 per cent increase on a decade ago.
The rise is down to identity fraudsters increasingly seeking ‘soft targets’ by taking out loans, mobile phone contracts and car cover in their victims’ names, rather than setting up bogus bank accounts which have tighter security requirements, Cifas said.
Identity fraudsters obtain victims’ financial details from their mail or bank statements, hacking into their email or buying their details from the dark web, where credit card and account numbers are available for just a few pounds.
They can then piece the information together to convince a firm or bank that they are the real customer.
Most of the time victims do not realise they have been targeted until a bill arrives for something they did not buy or they experience problems with their credit rating. They may also face a battle with their bank to receive a refund if they cannot prove they were a victim of ID fraud.
Politicians and consumer experts called for a crackdown. Tory MP Conor Burns said: ‘These figures are a stark warning about the extent of fraud. We are at risk of seeing a silent epidemic of ruthless targeting of the elderly and vulnerable, with unsuspecting victims losing everything.’
James Daley, of the consumer website Fairer Finance, said: ‘Consumers need to be increasingly careful about their personal information. It doesn’t take much for a criminal to obtain enough information to commit identity fraud.
‘There should be pressure on industries that have seen an increase in fraud to introduce measures to make it harder to steal customers’ identities.’
The figures show the practice of opening bank accounts in unwitting customers’ names is still the biggest form of identity fraud, with 51,544 cases in 2017. However, the total had fallen by 8 per cent on the previous year.
By contrast, the number of incidents of fraudsters taking out phone contracts rose by 47 per cent to 16,973. Cases of using stolen identities to take out insurance policies also jumped from 248 to 4,215.
According to the Office for National Statistics, there were 4.7 million incidents of fraud and computer misuse in the 12 months to September 2017. Experts warn consumers to protect themselves from fraud by never revealing security details such as their PIN or banking password.
Mike Haley, Cifas deputy chief executive, said: ‘As some targets become harder to crack, criminals are turning to what they consider to be softer ones.’