Cifas and RUSI highlight growing threat to UK security from identity fraud

• Alarming rise in identity fraud costs the UK an estimated £1.8 billion every year 

• Industry concerns about ability of AI and deepfake technologies to enable organised criminals to evade financial sector controls   

• New report calls on Government to put forward a proper response in its forthcoming Fraud Strategy – including support for victims and greater intelligence sharing between public authorities and industry 

Identity fraud continues to grow and now costs the UK an estimated £1.8 billion each year. It is one of the most common case types filed to the Cifas National Fraud Database by its 750-plus industry members – accounting for 64% of all filings in 2023 with more than 237,000 identity fraud cases recorded. 

Findings from a cross-industry working group hosted jointly by Cifas, the UK’s leading fraud prevention service, and the Royal United Services Institute (RUSI) – and published in a report today (2 December), Who Do You Think You Are: Recommendations on the Future Response to Large-Scale Identity Fraud – highlight the industry’s growing concern that these figures are set to soar as ever more criminals abuse AI technologies to steal identities and create flawless fake identity documents that evade controls in the financial industry. 

Industry contributors are urging the Government to take the problem seriously and prioritise the issue in its forthcoming Fraud Strategy.  

The report highlights the serious consequences of identity fraud and the lack of Government support available to victims. As well as impacting access to future credit and months of burden to restore accounts and ‘repair’ their online identity, many victims suffer psychologically from identity fraud and disengage from the digital economy. 

In response, the paper calls for a government-funded identity repair service like those in the US, Australia, and New Zealand.   

As businesses fight attacks on their services from organised crime groups, the report asks Government to enable industry access to the information they need to protect themselves. Allowing verification of Government-issued identity documents and allowing the sharing of intelligence by the Public Sector on false identity documents used in the defrauding of public bodies will be key to combatting the threat from the fraudsters. 

The report makes a number of recommendations including:  

• A review of the law on identity theft to ensure it provides an adequate deterrent to fraudsters. 

• Greater law enforcement action against the criminal marketplaces where the tools to commit mass-scale identity fraud are sold.  

• Assurances that the Government’s new digital identity scheme holds identity providers accountable for counter-fraud controls and victim support. 

Kathryn Westmore, Senior Research Fellow at RUSI, said: ‘Identity fraud is a pervasive threat, facilitating not just fraud for financial gain but many other types of serious criminal activity. Driven by new technologies and enhanced digitalisation, the sheer scale of the issue is ever-increasing and demands that the UK prioritises its response.’ 

Commenting on the findings, Helena Wood, Director of Public Policy at Cifas and co-author of the report, said: ‘Identity fraud victims suffer considerable administrative, financial, and also psychological harms following the fraudulent use of their identity. However, there is no support when repairing the damage that has been done. It is imperative that the Government’s Fraud Strategy treats this threat with the seriousness it deserves.’ 

Download ‘Who Do You Think You Are: Recommendations on the Future Response to Large-Scale Identity Fraud’ here. 

ENDS  

Notes to editors  

About Cifas 

Cifas is the largest not-for-profit fraud prevention service in the UK. It has more than 750 members who represent various industries including banking, retail, insurance, and telecoms. Cifas protects businesses and individuals from fraud through effective and secure data and intelligence sharing between the private, public and third sectors. Additionally, the independent organisation offers a range of products and services to help businesses prevent fraud and delivers specialist counter-fraud training through its Cifas Fraud and Cyber Academy and Digital Learning programme. 

Cifas’ data is included in the Office of National Statistics England and Wales Crime Statistics of police recorded crime and it works alongside law enforcement agencies in tackling fraud. In 2023, Cifas members prevented more than £1.8bn of fraud losses. Website | LinkedIn | X 

About RUSI 

The Royal United Services Institute (RUSI) is an independent think tank engaged in cutting-edge research on defence, security, and international affairs.  

Contact us at press@cifas.org.uk