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A million reasons financial institutions need to wake up to ID fraud

New research from the FCA reveals that 1.15 million potential new customers were turned away by financial institutions over the last 12 months due to the risk of financial crime. UK banks have also ended 375,000 relationships with existing customers over the same period for the same reasons. Find out the number one reason why...

The report named the risk of identity theft and phishing as the most common forms of fraud, whilst computer hacking, malware and credit card fraud were also highly cited. As was the risk of fraud by 120,000 ‘politically-exposed’ account holders. These are people identified by financial institutions to be in a position to abuse their role for financial gain.

Staff and automated systems flagged close to a million incidences of attempted fraud with 363,000 of these being reported to the National Crime Agency. This included 2,100 suspected terror-related transactions.

The study found that the fraud type for which customers were most often identified as the victim were pension fraud, account take over, debit card fraud and deceased fraud, where the personal information of people that have passed away was used in an attempt to set up accounts or generate credit.

Financial institutions are now accessing applications on the propensity for fraud risk and those considered high risk – i.e. people that have had their identities stolen in the past - are being turned away. However, as this report shows the risk for fraud doesn’t just apply to the living, but also to the deceased. The problem with deceased fraud is that it tends to go unnoticed for longer than account-take over, pension fraud and debit card cloning. For further information on how to identify deceased identity fraud please don't hesitate to contact us.


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