Mortgages have highest fraud rate
In every 10,000 applications 79 were found to be fraudulent, yet this is still down from 82 recorded in August last year.
Of those applications uncovered to be fraudulent 96% were classed as first party fraud (i.e. applications made by the genuine customer).
Nick Mothershaw, UK&I director of identity and fraud at Experian, said: “The level of detected fraud across financial products suggests that the threat of fraud remains as prevalent today as ever, if not more so.
“Investing in the latest fraud prevention systems remains of paramount importance for providers to protect against first party misrepresentation and the tactics of identity thieves.
“As people spread their financial products across a wider range of digital platforms, they must also remain vigilant to ensure their personal details remain out of the clutches of identity thieves.”
In terms of loans 16 in every 10,000 applications were found to be fraudulent, compared to 7 in every 10,000 applications in August 2013, an increase of 129%.
Loans proved to be a primary target for identity thieves, with 78% of applications uncovered being third party fraud attempts (where a victim’s identity is stolen by a third party) compared to 61% the year before.
More fraud is detected overall, as 35 fraudulent applications were detected per 10,000 in August. This incorporates applications for current accounts, credit cards, savings accounts and automotive finance.