The analysis of fraud trends during the first half of 2009 also reveals a 74% increase in identity fraud compared with the same period in 2008.
Commenting, Richard Hurley, CIFAS communications manager, said: "The traditional focus on the ways in which fraudsters operate draws attention away from the number of fraud victims being recorded, and these figures surely underline the very real human cost of fraud in the recession."
The 74% increase in the level of identity fraud (which includes both victims of impersonation and the creation of a fictitious identity by the fraudster) indicates that, while this period of recession has revealed new methods of fraud, fraudsters return to ‘old favourites' with a vengeance. It is worth noting that forged or altered UK passports are the most commonly used document in support of fraudulent applications.
As previous CIFAS fraud trends releases have noted, the economic slowdown goes hand in hand with the rise in fraud. The escalation in the numbers of victims, identity frauds and facility takeover frauds in the first half of 2009 confirms this.
Within the bad news, however, there is some much-needed good news. A 25% decrease in cases of application fraud (where fraud is committed by including material lies on application forms for finance, insurance or other products) demonstrates that the fight against fraud is succeeding on this front, as fewer people try to commit fraud through attempts to exaggerate income or hide bad credit histories.
In addition, an 11% increase in the financial losses avoided through fraud data sharing by CIFAS Members has been reported in the first six months of 2009, when compared with 2008.
Richard Hurley, CIFAS Communications Manager, explains: "Talk of an economic recovery may be premature but there is some good news. While fraud and fraudsters continue to wreak havoc on businesses and consumers alike, it is very reassuring to see that fraud departments are doing an excellent job in a period of unprecedented activity, accurately identifying frauds and preventing further losses."
