In Focus Consumer Credit
Takeover fraud figures spike
New research has revealed a spike in retail account takeover fraud of 96% in 2019
Mike Haley Chief executive officer, Cifas
Last year, we warned consumers about the dangers of online fraud in the lead-up to Black Friday, when many shoppers were poised to take to the internet in search of a good deal. The research, released as part of the Cifas
Faces of Fraud campaign, showed that there was an overall increase in online fraudulent conduct of 9% in the first nine months of 2019, compared to the same period last year.
The main increase was due to account
takeover – for instance where individuals claim another person’s mobilephone upgrade to obtain expensive handsets to sell on – which saw a 35% increase compared to last year, making up nearly half of the cases recorded by the telecoms industry. However it was instances of retail account
takeovers that soared the highest this year – 96% compared to the previous year. This occurs when someone takes over a person’s
online account – for example an online shopping account – and changes details such as the delivery address, usually with the intention of sending goods to themselves. Most individuals gain access to their victims’ accounts using personal data extracted in phishing or smishing schemes. Unsurprisingly, it was younger people who
were the most common victims of identity fraud on online retail accounts, with under- 21s having the highest proportion compared to other age groups. In total, 10% of victims under 21 had their details used for online retail and 17% for telecoms. Although younger people tend to be more
savvy about fraud schemes, they are also more likely to be targeted online simply as they are more active in online spaces.
Extra vigilent With online fraudulent conduct seeing a sharp increase last year, shoppers need to be extra vigilant. Fake social posts, online advertising or e-mails are extremely common ways for criminals to ‘phish’ for the personal data that they can use to steal someone’s identity or take over their account. Consumers need to be wary of sharing
The majority of online fraudulent conduct
was made up of identity fraud, where individuals pose as unwitting victims or create a fictitious persona to apply for goods and services online. Identity fraud accounted for 53% of online fraud, representing a 71% increase on last year. Telecoms companies were hit hard by
fraudulent conduct, with an overall increase of 21% compared to the previous year.
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Although younger people tend to be more savvy about fraud schemes, they are also more likely to be targeted online simply as they are more active in online spaces
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suspicious posts on social media, or clicking links. Some easy ways to spot fraudulent activity is to verify the e-mail address, or hover over the link to check its authenticity. Also, keep a close eye on your bank
balance for any transactions that you are not familiar with, and inform your bank as soon as you spot any activity you do not recognise. CCR
January 2020
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