Cifas research reveals nearly half of UK adults feel first party fraud is acceptable

• 25-34-year-olds most likely to commit first party fraud
• A fifth of individuals don’t believe money muling is illegal
• Falsely claiming non delivery of a package is ‘most common’ fraud

The latest research from the UK’s leading not-for-profit fraud prevention service, Cifas,  shows that nearly half (48%) of adults believe it is ‘reasonable’ to commit first party fraud.

First-party fraud, when someone knowingly misrepresents their identity or provides false information for financial or material gain, is on the rise. Examples include exaggerating salaries on mortgage applications, ordering goods online and falsely claiming they have not been delivered to obtain a refund, or agreeing to use their bank account to transfer illicit funds (known as money muling).

Cifas’ latest Fraud Behaviours Survey presented 2,000 UK adults with 10 different first party fraud scenarios. Respondents were asked if they thought the actions described were reasonable or unreasonable, legal or illegal, and whether they themselves had done the same, or knew someone who had, over the last 12 months.

REVEALED – The most common first party frauds:

1. Retail non-delivery – falsely claiming an item of clothing had not been delivered, even if it had been worn, to obtain a refund (19%)
2. Falsifying CV qualifications – lying on a CV and/or job application to land a role (18%)
3. Single Person Discount fraud – deliberately continuing to claim Single Person Discount to reduce a council tax bill, even where people had moved their partner into their home permanently (16%)

Nearly a quarter (23%) of respondents said that selling a car on a hire purchase agreement and continuing to make repayments to the finance company after it was sold – known as asset conversion fraud – was the ‘most reasonable’ type of first party fraud ahead of money muling (17%).

Alarmingly, over a third of individuals (36%) did not regard asset conversion fraud as illegal. Similarly, more than 1 in 5 people (22%) thought that money muling was legal, and 19% believed the same for mobile phone insurance fraud.

Those aged 25-34 (19%) were the group most likely to be involved in first party fraud according to the survey responses.

Mike Haley, CEO of Cifas, said: ‘First party fraud is too often seen as a victimless crime. But the truth is very different. It is a growing threat and causes significant harm to individuals, businesses, and communities, and can result in severe repercussions for perpetrators.

‘It is only through effective, cross-sector collaboration and education that we can collectively improve public awareness and ensure consumers have a greater understanding of the true dangers of first party fraud and its lasting impact.’

Discover more from the latest Cifas Fraud Behaviours report.

Cifas has a range of solutions and services, such as APP Victim Check, Beneficiary Checks, Vision and Insider Threat Protect – as well as Cifas Fraud and Cyber Academy courses and a Digital Learning programme – to help tackle fraud and financial crime.

ENDS

Notes to Editors

For more information, please contact Hayley Paterson, Cifas Press and PR Manager, on 020 4551 7072 or press@cifas.org.uk.

Survey methodology

The survey was carried out by Opinion Matters on behalf of Cifas with a nationally representative sample of 2,000 UK people between 22-28 May 2024.

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 Opinion Matters

Opinion Matters is an independent market research agency that create bespoke market research solutions for businesses, organisations, and agencies worldwide.  Opinion Matters abides by and employs members of the Market Research Society which is based on the ESOMAR principles.

Contact us at press@cifas.org.uk