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The Analysis News & Opinions


UK businesses under increasing attack by criminals


Last month, Cifas released its annual Fraudscape report, detailing the latest data and intelligence recorded by Cifas members during 2021. The report reveals that a new case of fraudulent conduct was fi led by organisations every 90 seconds on average,


with over


360,000 cases recorded to the National Fraud Database – an increase of 16% on 2020. As a result, Cifas members saved around £1.3bn through prevented fraud losses in 2021.


Identity fraud Cases involving identity


fraud increased


by nearly a quarter (22%) in 2021 when compared to the previous year, with over 226,000 cases recorded to the National Fraud Database. Banking and plastic cards were hit hardest


by criminals abusing stolen details to apply for products and services. Fraudsters also focused their attention on


loan products which saw a 39% increase in fraudulent activity, and are likely to continue to be targeted as a response to the rise in living costs.


Money muling A fi fth of cases recorded to the National Fraud Database in 2021 relate to the misuse of facilities, which has grown by 17% to over 79,000 cases. A large number of misuse cases related to


bank accounts, with nearly three-quarters (72%) showing behaviours indicative of money mule activity, which increased by nearly a quarter (24%) to over 50,000 cases. Of these cases, a large number were aged 21 to 30 years – up 32%. There was is also a notable rise in those aged under 21, with cases up by 19%.


Facility takeover The majority of the remaining cases fi led to the National Fraud Database were recorded for facility takeover fraud, with 37,000 instances recorded to the Database. Criminals focused their eff orts on gaining access to existing accounts,


particularly in


relation to online retail and telecoms products. 2021 also saw a shift towards gaining access


May 2022


to existing plastic card accounts, which rose by nearly a fi fth (19%).


Insider threat Nearly 270 cases involving employee or job applicant fraud were fi led to the Internal Fraud Database in 2021. Two out of fi ve of these were in relation


to dishonest actions by staff , such as by stealing


cash or equipment from their


employer. There was also a 10% growth in unsuccessful attempts made by job applicants who had lied in their application, with most of these individuals attempting to hide adverse credit or employment histories. Mike Haley, chief executive of Cifas, said:


“Our latest fi gures show that businesses and consumers are currently facing a tsunami of fraud, and unfortunately I think things may get worse before they get better. “The predicted rise in the cost of living will give criminals new opportunities to com-


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mit fraud, and I expect that consumers will be bombarded by increasingly sophisticated phishing attempts, including fake job off ers, money-making opportunities and off ers that are too good to be true. “Businesses will also fi nd themselves under


greater attack from fraudulent activity, with criminals increasingly looking for vulnerabili- ties in systems and processes. “An attempt of identity fraud is made, on


average, every two and a half minutes against businesses, and sadly when these attempts are successful, criminals can go on to use the proceeds to commit other criminal off ences – and even fi nance terrorist activity.’ Amber Burridge, head of fraud intelligence


for Cifas, said: “Members of the public are at more risk than ever of falling victim to fraud and scams. It is important they take proactive steps to


protect themselves by thinking


carefully when receiving an unsolicited call or email asking for money or fi nancial details.”


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