"Sophisticated, predatory" criminals behind fraud jump.
The number of recorded frauds rose by 25% in 2014, according to fraud prevention agency Cifas.
In 2014 there were 276,993 reported cases of fraud, up from 221,075 in 2013.
And it is identity theft that remains the big problem, accounting for 41% of all frauds last year. The number of older victims is also on the rise, with a 15% increase in the number of over-55s having their identity stolen.
The role of technology
The types of fraud being committed are changing as criminals adapt to changing technology and security. While identity fraud is on the rise, there has been a significant drop in criminals taking over accounts – this is where they hack your existing accounts. This is because it has become a lot harder to take over existing accounts due to better security, so fraudsters have shifted their focus to using other people’s identities or creating entirely false identities in order to open accounts.
Identity fraud rose by 27% in the first quarter of 2015 with 34,151 cases reported in just three months.
“The frauds we are recording point to increasingly sophisticated, predatory and organised criminals. This is crime on an industrial scale,” said Simon Dukes, chief executive at Cifas.
Cifas has made a number of recommendations for how to fight fraud, including research into the exact point at which our data is being compromised and a review of sentencing guidelines to make sure criminals are punished appropriately. But we also need to take steps ourselves to better protect our personal information and prevent ourselves from becoming victims.
“If we are to see a drop in reported fraud this year, we really need to get to grips with the problem of identity fraud, both as a crime in its own right and as a major facilitator for other types of fraud,” said City of London Police Commander Steve Head.
“The way to do this is by both targeting the offenders and have law enforcement, Government and the private sector working together to raise awareness of the threat and provide clear guidance on how to prevent it.”
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Protecting yourself
As cases of fraud rise, it is more important than ever to take steps to protect yourself and your personal information.
Here are five simple steps to protect yourself from identity fraud:
Create strong passwords
[SPOTLIGHT]Use a mix of upper and lowercase letters, numbers and symbols to make it hard for a criminal to crack your password. Aim for at least 10 characters in your password and don’t use the same one for everything.
One way to create a secure password is to think of your favourite song then just use the first letters of your favourite line, replacing some letters with symbols that resemble the letters. So, the opening line of Close to You by the Carpenters ("Why do birds suddenly appear every time you are near") could become ¥Db$a3T¥an.
Update your security software
Make sure you have firewalls, anti-virus and anti-spyware programmes installed on your computer and regularly update them.
Be discreet
Don’t share all your personal information on social networking websites. Keep your birthday and where you live to yourself for a start.
Memorise passwords and PINs
Avoid writing them down and don’t tell anyone what they are.
Invest in a shredder
Shred all your financial documents before you throw them away so someone can’t access all your personal information simply by going through your rubbish.
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More on scams:
Online banking fraud rose 48% in 2014