Recession 'pushes up incidents of identity fraud'
Commercial insurance
4th February 2010
The number of people falling victim to identity fraud rose by 31 per cent during 2009, new data reveals.
Figures from CIFAS - The UK's Fraud Prevention Service show that overall fraud levels increased by nine per cent compared with 2008, with large numbers of identity scams and false insurance claims pushing up the data.
According to a report by the organisation, the rise "has a direct link to the recession" and application fraud has fallen in the wake of tighter lending conditions causing scammers to turn to stealing identities instead.
"Fraudsters adapt their methods in response to changes in the economy, finding and exploiting any area of weakness," CIFAS Chief Executive Peter Hurst warned, advising organisations to arm themselves against criminals.
Those seeking a UK insurance policy are advised that under new powers being granted to the Information Commissioner's Office by the government, fines of up to £500,000 could be imposed for the worst breaches of the Data Protection Act.
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