Umair
A fraud prevention service has reported seeing a record number of cases filed by firms to its database last year.
Cifas said 421,000 cases were filed to the database in 2024 – with identity fraud making up the bulk of reports.
The National Fraud Database helps firms who are members of Cifas to share intelligence and understand fraud trends and emerging threats.
Cifas was set up in 1988 and its members have been filing fraud risks since then.
More than 700 organisations are members of Cifas, including those in banking and finance, building societies, insurers, retailers, telcommunications firms, the automotive sector, gambling and gaming firms and public sector organisations.
Some 59% of cases filed to the database last year related to identity fraud.
Criminals are also using AI (artificial intelligence) to help them build false identities, so they can take advantage of people at speed and scale, Cifas said.
There has also been a rise in identity fraud cases involving personal store cards, bank accounts, credit cards and motor insurance, with people aged in their 60s and upwards particularly likely to be targeted.
Mobile phone accounts have also been a particular target for fraudsters, including unauthorised sim swaps. Sim swap fraud happens when criminals transfer someone else’s phone number to their sim card, enabling them to receive calls and texts intended for the fraud victim.
This enables criminals to change passwords and access accounts.
Online retail is also a target for fraudsters, with criminals frequently changing account details or redirecting orders to alternative addresses.
Cases of false applications also increased in 2024, with false documents being a common theme, particularly across the bank account and insurance sectors.
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With the growth of AI, the increasing sophistication and volume of false documentation poses a challenge to fraud prevention, Cifas said.
It added that organisations across multiple sectors have reported the same templates in circulation with criminals making “simple edits” to personal details and transactions.
Cifas also said that more than 34,000 cases of suspected money mule activity were reported to the database last year.
While this was an 8% decline compared with 2023, organisations continue to see muling as a significant issue, with people aged under 30 years old accounting for six in 10 (61%) cases, Cifas added.
Money mules allow cash from criminal activity to pass through their accounts, often in exchange for a portion of the money. People doing this risk ending up with a criminal record and could find it hard to access financial products in future.
Mike Haley, Cifas CEO, said: “Our data highlights the relentless rise in fraud and the ever-evolving tactics used by criminals to exploit victims. Identity fraud, account takeovers, and false applications continue to climb, exposing vulnerabilities across multiple sectors.
“These figures serve as a stark warning that the fight against fraud is far from over. Industry collaboration, cross-sector data and intelligence sharing and support and education for consumers to help keep them safe are more critical than ever before.”
Alexander Iosad, director of government innovation policy at the Tony Blair Institute said: “A digital ID, based on government-verified credentials, would enable people to prove who they are in more settings, more securely, with full control, and without the ability to counterfeit.”
