SHARING OUR INSIGHT:
FRAUD TRENDS AND RESEARCH IN 2016

In 2016 we continued to share our data and insights on key fraud trends through statistics and research.

In 2016, Cifas members recorded the following volumes on the National Fraud Database:

Product 2015 2016 % Change
Asset conversionThe unlawful sale of an asset subject to a credit agreement - for example where a person has bought a car on finance and sold it on before paying it off.
Asset conversionThe unlawful sale of an asset subject to a credit agreement - for example where a person has bought a car on finance and sold it on before paying it off. 258 381 47.7%
Application FraudWhen an application for a product or service has been made with material falsehoods (lies), often using false supporting documentation (but where the name provided has not been identified as false).
Application FraudWhen an application for a product or service has been made with material falsehoods (lies), often using false supporting documentation (but where the name provided has not been identified as false). 41,186 31,559 -23.4%
False insurance claimFalse insurance claims occur when an insurance claim, or supporting documentation, contains material falsehoods (lies).
False insurance claimFalse insurance claims occur when an insurance claim, or supporting documentation, contains material falsehoods (lies). 366 496 35.5%
Facility Takeover FraudWhen a fraudster abuses personal data to hijack the running of an existing account or product.
Facility Takeover FraudWhen a fraudster abuses personal data to hijack the running of an existing account or product. 15,497 22,525 45.4%
Identity FraudWhen a fraudster abuses personal data or identity details in order to impersonate an innocent party, or creates a fictitious identity, in order to open a new account or take out a new product.
Identity FraudWhen a fraudster abuses personal data or identity details in order to impersonate an innocent party, or creates a fictitious identity, in order to open a new account or take out a new product. 169,592 172,919 2.0%
Misuse of facility fraudThe misuse of an account, policy or product, where the identity/owner has not been identified as false. Examples include paying in an altered cheque, knowingly making a payment that will bounce or allowing an account to be used to transfer criminal funds (acting as a 'money mule' to aid money laundering).
Misuse of facility fraudThe misuse of an account, policy or product, where the identity/owner has not been identified as false. Examples include paying in an altered cheque, knowingly making a payment that will bounce or allowing an account to be used to transfer criminal funds (acting as a 'money mule' to aid money laundering). 94,001 96,803 3.0%
Total 320,900 324,683 1.2%

“In 2016, identity fraud reached
record levels in the UK.”

In 2016, Cifas members recorded the following volumes on the Internal Fraud Database:

Product 2015 2016 % Change
Account fraud
Account fraud 50 31 -38.0%
Being bribed
Being bribed 2 1 -50.0%
Dishonest action by staff to obtain a benefit by theft or deception
Dishonest action by staff to obtain a benefit by theft or deception 188 172 -8.5%
Employment application fraud (Successful)
Employment application fraud (Successful) 34 39 14.7%
Employment application fraud (Unsuccessful)
Employment application fraud (Unsuccessful) 313 159 -49.2%
Unlawful obtaining or disclosure of commercial data
Unlawful obtaining or disclosure of commercial data 2 0 -100.0%
Unlawful obtaining or disclosure of personal data
Unlawful obtaining or disclosure of personal data 36 31 -13.9%
*Please note, the total of internal fraud types will exceed the total number of cases as an internal fraud cases can cover more than one fraud type
Total cases 585 409 -30.1%

Intelligence and research

Cifas continued to produce a range of intelligence assessments, research reports and alerts for its members throughout the year.

ALERTS

Be aware alerts – in 2016, Cifas launched a new service for members called “Be Aware”. The service allows members to share information about trends or fraudster techniques faster than ever before, through a brief update that is sent out to all subscribers of the service. This gives members the information they need to stay a step ahead.
Problem profile bulletins and fraud threat alerts – produced to provide intelligence on key fraud enablers and MOs, including potential prevention measures, these assessments help organisations assess how well equipped they are to tackle specific threats. In 2016 Cifas issued eight Problem Profile Bulletins and Fraud Threat Alerts spanning a range of fraud threats: from cyber enabled frauds and scams, to insider fraud techniques, to the use of a variety of false identity documents.

INTELLIGENCE ASSESSMENTS

Quarterly fraud threat update – this more detailed intelligence assessment summarises the main fraud threats and trends as reported to Cifas during the previous calendar quarter, across all business sectors represented in the Cifas membership. The assessment is produced to help inform members about how fraud threats are changing; to inform preventative or remedial action which members might take to help reduce fraud losses; and for use in raising awareness of key fraud risks internally.

RESEARCH

Fraudscape and Employee Fraudscape – Cifas’ key annual publications, these explore the trends from our databases and invite expert third party commentary on the main fraud threats.