• >> 2011 Press Releases
• >> 2010 Press Releases
• >> 2009 Press Releases
• >> 2008 Press Releases
• >> 2007 Press Releases
• >> 2006 Press Releases
• >> Press Contacts

RECESSION APPEARS TO BE PUSHING MORE CONSUMERS INTO COMMITTING FRAUD

Equifax offers comment on the CIFAS Quarter 1 2009 Figures

London, April 29th 2009 - An unfortunate consequence of the economic downturn is an increase in fraud. And leading ID fraud expert, Equifax, believes that the latest figures from CIFAS, the UK's Fraud Prevention Service, provide a very clear indication that even this early into the recession, fraud is certainly on the increase.

The first quarter report by CIFAS, released this week, shows several key trends in fraudulent activity:

• A 75% increase year on year in facility takeover - where the fraudster steals funds from legitimate accounts
• A staggering 88% increase in cases of identity fraud where funds where actually granted to the fraudsters
• A 40% increase in people being impersonated compared with the same period in 2008
• A 43% surge in false insurance claims

There is, however, a positive sign in terms of lenders' ability to spot application fraud. Year on year there was a nearly 24% drop in the level of application fraud reported to CIFAS.

Neil Munroe, External Affairs Director, Equifax, believes that the financial downturn, with job losses and pay freezes affecting more and more families, may be pushing some people into thinking fraud is the only option to solve their financial worries. "People become increasingly desperate when their financial circumstances get worse - and if they are finding they are being refused credit at every turn - they may think stealing someone else's identity may be the only option.

"We would, of course, strongly advise that anyone who is facing severe financial difficulties looks at all the options to get help from legitimate means rather than turn to crime. There are a number of organisations that can help people assess their financial situation and talk to lenders to negotiate reduced payments whilst they get themselves back on track. This surely must be a better option than taking a road to crime."

ENDS

For further press information please contact: Elinor Puzey, Louise Fowler, Cecile Stearn or Wendy Harrison at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: elinor@harrisonsadler.com