CIFAS RESEARCH REVEALS INCREASE IN SHOPPERS COMMITTING NON-DELIVERY FRAUD
10 January 2023
Research carried out by Cifas, the UK’s leading fraud prevention service, has revealed that an increasing number of online shoppers are committing fraud against retailers.
The rise in online shopping in recent years has resulted in a significant and growing level of non-delivery fraud. This type of fraud occurs when a shopper places an order, receives the goods and then fraudulently claims to not have received the delivery in order to claim a refund.
In a recent survey carried out by Cifas, 1 in 5 people (20%) admitted that they or someone they knew had committed non-delivery fraud over the last twelve months - up from 18% the previous year. The largest proportion (36%) of these people were aged between 25-34, followed by 16–24-year-olds at 33%.
Surprisingly, nearly a fifth of those surveyed (18%) didn’t believe it was illegal to falsely claim the non-delivery of a purchase, and this was up from 17% just twelve months earlier.
As the cost-of-living crisis takes hold, Cifas has seen a rise in individuals committing fraud to not only claim refunds, but also to obtain financial products such as mortgages and bank loans. Individuals who make false statements around their level of income often support these claims with fake bank statements and HMRC tax returns.
Between January-September 2022, nearly 18,000 records of false applications were filed to the Cifas National Fraud Database - up nearly half (45%) when compared to the same period in 2021. The largest proportion of these impacted the banking sector, but there were also marked increases in attacks on the asset finance, loan and mortgage sectors.
Fraud costs the UK economy billions of pounds every year, and individuals found guilty of committing fraud and prosecuted face penalties, including a potential prison sentence.
Mike Haley, CEO of Cifas, said: ‘We know that many people are struggling with the rise in the cost of living, but however tempting, fraud is never a solution. Anyone found to have committed fraud faces serious consequences which may impact their financial and employment futures, and in some instances result in a prison sentence.
‘However harmless it may seem, carrying out fraud is too big a risk to take with your future’
Notes to Editors
Interviews are available.
For more information, please contact Corinne Gladstone, Cifas Head of Strategic Communications, on 020 4551 7072 or email@example.com.
Back to newsroom >
CIFAS RESPONDS TO FRAUD AND THE JUSTICE SYSTEM REPORT
12 January 2023
Responding to the publication of UK Parliament’s report - Fraud and the Justice System: Government Response to the Committee’s Fourth Report of Session 2022–23, Mike Haley, CEO of Cifas, said:
FRAUD FOCUS – ROYAL MAIL SCAMS, VISA FRAUD AND A RISE IN LOAN-FEE FRAUD
20 December 2022
Cifas, the UK’s leading fraud prevention service, is highlighting the latest fraud threats, and warning the public to stay vigilant of the ever-changing tactics that scammers are using to extract money and information.