Sharp jump in current account fraud

Fraud cases have almost doubled in the last three months according to Experian.

There was a surge in fraudulent current account applications in the second quarter of 2015, according to Experian.

The number of fraudulent applications shot up from 81 in every 10,000 during the first quarter to 151 in every 10,000 applications by the end of the second quarter.

Current account fraud comes in two main forms. First-party current account fraud is where someone lies about their own circumstances to try to get hold of a current account, while third-party current account fraud involves a criminal using stolen information to try to open an account under someone else's name.  

And it's this identity theft which is the most prominent form of current account fraud, making up 49% of fraud cases in the first quarter and  69% in the second quarter. The good news is that the figures relate to detected and prevented fraud, so they’re blocked before any harm is done.

Nick Mothershaw, UK&I director of identity & fraud at Experian, said: "This sudden surge is alarming and indicative of a widespread organised attack on financial service providers."

Mortgage fraud falling

Fraudulent mortgage applications, by contrast, have seen a sharp decrease. In the first quarter, there were 83 frauds in every 10,000 applications, but by the second quarter this had dropped to 70 in every 10,000. This is the first time since Q3 2013 that the quarterly fraud rate for mortgages dropped below 80 for every 10,000 applications.

This is the lowest level of attempted mortgage fraud since 2013.

Keep yourself safe from ID fraud

There are plenty of simple steps which you can take to protect yourself from falling victim to identity fraud.

• Always shred or destroy documents that contain personal information before you throw them away;
• Keep an eye on your post so you know when to expect important documents, and when to act if they don’t arrive;
• Use secure, unique passwords - preferably different codes for different online accounts like financial services and email. Try not to allude to a password on social media either. Names of pets and children are very common passwords;
• Check your bank statements regularly to make sure there aren’t any dodgy transactions;
• Never respond to cold calls or emails which ask for account details and passwords;
• Register to vote at your current address so that thieves can’t use your old address to open new accounts and run up debts in your name;
• Redirect your mail via the Post Office if you move house;
• Don’t store account names and passwords on your smartphone;
• Check your credit report for fraudulent applications.

If you’re unlucky enough to be subject to identity fraud, get in touch with your bank, the police and Action Fraud as soon as you can. Read more at Identity theft: what to do if you're a victim of ID fraud.

Get sorted with a high-interest current account

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