Complaints to the Financial Ombudsman Service regarding identity fraud remained 18% higher than pre-pandemic levels last year, with this figure continuing to climb, according to data obtained by ID-Pal.
The number of identity fraud cases soared during the height of the pandemic, with 2020levels finishing 44% higher than 2019.
Despite seeing a decrease the following year as normality returned post pandemic, numbers continue to grow – with 2022 on track to achieve a 10% increase in complaints compared to 2021.
Colum Lyons, CEO and founder of ID-Pal, said: “Fraudsters thrive on instability, so as the cost-of-living crisis grows, it follows that fraud will also increase.
“Therefore, it is critical that financial institutions protect their organisation, team and customers from fraud of any type without adding friction to their services in doing so.
“The results of our request show just how easy it is for criminals to commit identity fraud.
“If they succeed in opening up bank accounts these are then used for illegally sourced funds. Once a criminal is done with an account, they can disappear.”
Through identity fraud, criminals can open or take over existing bank accounts; apply for and obtain credit cards, loans and state benefits; place orders; take out mobile contracts; and apply for and obtain genuine identity documents, including passports and driving licenses in their victims’ names.
As the cost-of-living crisis takes hold, fraud rates are expected to rise again throughout this quarter and into 2023.
These figures show the importance of financial institutions and other organisations putting proper controls in place to stop this fraud at the source.
Lyons added: “The results also show that identity fraud cases have reduced since the pandemic, proving the dial can be moved in the right direction.
“Newer generations of fraud prevention technology exist that are adaptable and customisable, like ID-Pal, so the excuse that the solution to prevent fraud can’t be integrated into an organisation easily is no longer acceptable.”
