SHARING OUR INSIGHT:
FRAUD TRENDS AND RESEARCH IN 2016
In 2016 we continued to share our data and insights on key fraud trends through statistics and research.
In 2016, Cifas members recorded the following volumes on the National Fraud Database:
| Product |
2015 |
2016 |
% Change |
| Asset conversionThe unlawful sale of an asset subject to a credit agreement - for example where a person has bought a car on finance and sold it on before paying it off. |
| Asset conversionThe unlawful sale of an asset subject to a credit agreement - for example where a person has bought a car on finance and sold it on before paying it off. |
258 |
381 |
47.7% |
| Application FraudWhen an application for a product or service has been made with material falsehoods (lies), often using false supporting documentation (but where the name provided has not been identified as false). |
| Application FraudWhen an application for a product or service has been made with material falsehoods (lies), often using false supporting documentation (but where the name provided has not been identified as false). |
41,186 |
31,559 |
-23.4% |
| False insurance claimFalse insurance claims occur when an insurance claim, or supporting documentation, contains material falsehoods (lies). |
| False insurance claimFalse insurance claims occur when an insurance claim, or supporting documentation, contains material falsehoods (lies). |
366 |
496 |
35.5% |
| Facility Takeover FraudWhen a fraudster abuses personal data to hijack the running of an existing account or product. |
| Facility Takeover FraudWhen a fraudster abuses personal data to hijack the running of an existing account or product. |
15,497 |
22,525 |
45.4% |
| Identity FraudWhen a fraudster abuses personal data or identity details in order to impersonate an innocent party, or creates a fictitious identity, in order to open a new account or take out a new product. |
| Identity FraudWhen a fraudster abuses personal data or identity details in order to impersonate an innocent party, or creates a fictitious identity, in order to open a new account or take out a new product. |
169,592 |
172,919 |
2.0% |
| Misuse of facility fraudThe misuse of an account, policy or product, where the identity/owner has not been identified as false. Examples include paying in an altered cheque, knowingly making a payment that will bounce or allowing an account to be used to transfer criminal funds (acting as a 'money mule' to aid money laundering). |
| Misuse of facility fraudThe misuse of an account, policy or product, where the identity/owner has not been identified as false. Examples include paying in an altered cheque, knowingly making a payment that will bounce or allowing an account to be used to transfer criminal funds (acting as a 'money mule' to aid money laundering). |
94,001 |
96,803 |
3.0% |
| Total |
320,900 |
324,683 |
1.2% |
“In 2016, identity fraud reached
record levels in the UK.”
In 2016, Cifas members recorded the following volumes on the Internal Fraud Database:
| Product |
2015 |
2016 |
% Change |
| Account fraud |
| Account fraud |
50 |
31 |
-38.0% |
| Being bribed |
| Being bribed |
2 |
1 |
-50.0% |
| Dishonest action by staff to obtain a benefit by theft or deception |
| Dishonest action by staff to obtain a benefit by theft or deception |
188 |
172 |
-8.5% |
| Employment application fraud (Successful) |
| Employment application fraud (Successful) |
34 |
39 |
14.7% |
| Employment application fraud (Unsuccessful) |
| Employment application fraud (Unsuccessful) |
313 |
159 |
-49.2% |
| Unlawful obtaining or disclosure of commercial data |
| Unlawful obtaining or disclosure of commercial data |
2 |
0 |
-100.0% |
| Unlawful obtaining or disclosure of personal data |
| Unlawful obtaining or disclosure of personal data |
36 |
31 |
-13.9% |
| *Please note, the total of internal fraud types will exceed the total number of cases as an internal fraud cases can cover more than one fraud type |
| Total cases |
585 |
409 |
-30.1% |
Intelligence and research
Cifas continued to produce a range of intelligence assessments, research reports and alerts for its members throughout the year.
ALERTS
Be aware alerts – in 2016, Cifas launched a new service for members called “Be Aware”. The service allows members to share information about trends or fraudster techniques faster than ever before, through a brief update that is sent out to all subscribers of the service. This gives members the information they need to stay a step ahead.
Problem profile bulletins and fraud threat alerts – produced to provide intelligence on key fraud enablers and MOs, including potential prevention measures, these assessments help organisations assess how well equipped they are to tackle specific threats. In 2016 Cifas issued eight Problem Profile Bulletins and Fraud Threat Alerts spanning a range of fraud threats: from cyber enabled frauds and scams, to insider fraud techniques, to the use of a variety of false identity documents.
INTELLIGENCE ASSESSMENTS
Quarterly fraud threat update – this more detailed intelligence assessment summarises the main fraud threats and trends as reported to Cifas during the previous calendar quarter, across all business sectors represented in the Cifas membership. The assessment is produced to help inform members about how fraud threats are changing; to inform preventative or remedial action which members might take to help reduce fraud losses; and for use in raising awareness of key fraud risks internally.
RESEARCH
Fraudscape and Employee Fraudscape – Cifas’ key annual publications, these explore the trends from our databases and invite expert third party commentary on the main fraud threats.