experianExperian UK reports current account fraud almost doubles due to extensive large scale organized attacks

There has been a huge surge in large-scale targeted fraud attacks in Q2 2015.  Current accounts saw the rate of fraudulent applications soar from 81 in every 10,000 during Q1 2015, to 151 in every 10,000 applications by the end of Q2.

Identity theft is at the heart of these attacks. In Q1 2015, 49 per cent of all current account fraud was identity theft, but by Q2 2015 this figure had risen to 69 per cent.

Nick Mothershaw, UK&I Director of Identity & Fraud at Experian, comments: “We’ve seen current accounts slowly become the main target for criminals over the past year, but this sudden surge in fraud is alarming and indicative of a widespread organised attack on financial service providers.

“The good news is that these figures relate to detected and prevented fraud so these large scale attacks are being blocked before the damage is done. However, it does reveal the fervour with which fraudsters are targeting current accounts and the dangers for both the individuals whose identities are stolen and the organisations trying to protect them.”

Despite the growth in current account fraud there has also been a sharp decrease in the rate of fraudulent mortgage applications.  In Q1 2015, the fraud rate stood at 83 in every 10,000 applications, but by Q2 2015, this had dropped to 70 in every 10,000. This is the first time since Q3 2013 the quarterly fraud rate for mortgages has dropped below 80 in every 10,000 applications.

For those wishing to stay up to date with the latest insights, visit Experian’s interactive fraud dashboard here.  Launched earlier this year, it is the first of its kind in the UK and shows fraud rates by financial product as well as regional hotspots and high profile fraud facts.

Source: Experian UK