 |
|
|
|
© Business-Money.com Ltd 2013 |
|
|
|
The overall rate of fraud at point of application across the UK’s financial services sector increased by 4% in 2011, to more than 17 in every 10,000 applications, according to research from Experian. This overall increase was also driven by growth in insurance and current account fraud. Insurance fraud rates reached 11 in every 10,000 applications and claims in 2011, an increase of 23% during the past year. The rate of current account fraud increased to 36 frauds in every 10,000 applications in 2011, up from 23 in every 10,000 in 2010. Nick Mothershaw, UK and Ireland director of identity and fraud at Experian, commented: “About 70% of financial services application fraud in the UK is down to first parties misrepresenting their circumstances. Products such as mortgages and insurance, that have seen fraud soar during the last year, have a significant first-party fraud element to them. This kind of fraud tends to originate from financially stressed segments of society. “It is vital that financial service firms accurately validate and verify the identities of the people they interact with, and use every technique at their disposal, which includes validating income claims and checking for signs of an adverse credit history. This is essential to restrict the significant damage that fraud can do to the bottom line.” Other Business Money News
| ||||||||||||||||||||||||
Business
Money delivers news, reviews, research, comment and
analysis to financial intermediaries, bankers, lenders,
and SME decision makers and
supports these finance
professionals with timely, relevant and accurate market
intelligence and sources of business funding.
