UK sees sharp rise in ID fraud: Essential safety tips

The first half of 2024 saw a significant increase in identity fraud across the UK, with over 127,000 cases recorded, according to consumer watchdog Which?

The total number of fraud cases reported to the Cifas National Fraud Database (NFD) between January and June 2024 reached 214,000—a 15% rise compared to the same period in 2023.

Identity fraud, in particular, has emerged as the most commonly reported type of fraud, highlighting a growing concern for both individuals and institutions.

According to Which?, the surge in identity theft is part of a broader trend that includes other types of fraud, such as facility takeover.

This type of fraud, where criminals gain control of someone else’s account, has seen an alarming increase.

Over 37,000 cases of facility takeover were reported to the NFD in the first half of 2024, marking a 99% jump compared to the same period last year.

These incidents frequently involve phishing emails and texts containing malicious links, which trick victims into revealing their account information. A significant proportion of these takeovers occurred in the online retail (36%) and telecom (40%) sectors.

Growing Threats and Rising Numbers

Misuse of facility cases, another form of fraud where an account is misused by its genuine holder (often involving activities like money muling), also saw a notable rise.

More than 37,000 cases were reported in the first half of 2024, up 9% from the previous year.

Cifas attributes these increasing numbers to the complex nature of modern fraud tactics and emphasises the importance of collaboration across sectors to combat the threat.

“It’s only through greater collaboration and sharing of critical data and intelligence across all sectors—including law enforcement, the private sector, and government agencies—that the UK’s fraud emergency can be tackled,” a Cifas spokesperson stated.

A coalition led by Which?—including banks and telecoms companies—is calling on the government to facilitate better data sharing among businesses to detect fraud earlier and protect customers more effectively. The coalition argues that by sharing indicators of fraudulent activity, businesses will have more information at their disposal to prevent attacks before they occur, thereby enhancing customer protection.

Understanding Identity Theft and How to Avoid It

Identity theft occurs when personal details are stolen, often following a data breach or even through methods as simple as rummaging through mail for sensitive documents.

When these details are used to obtain goods or services in the victim’s name—such as opening a bank account or signing a phone contract—this constitutes identity fraud.

To safeguard against identity fraud, experts recommend several proactive measures:

1. Protect Personal Information: Never disclose account, personal, or payment details in unsolicited calls, emails, or texts.
2. Use Strong Passwords: Create strong, unique passwords for online use and consider using a password manager.
3. Install Antivirus Software: Protect your devices with reputable antivirus software.
4. Manage Physical Documents Carefully: Keep important documents secure and shred those containing sensitive information.
5. Be Alert for Missing Mail: Notify your bank if expected statements or new cards don’t arrive.
6. Redirect Mail When Moving: Arrange for mail redirection with Royal Mail when relocating.
7. Be Cautious on Social Media: Avoid accepting unknown friend requests and set profiles to private.
8. Check App Authenticity: Only download apps with positive reviews and from trusted sources.
9. Avoid Public Wi-Fi for Sensitive Transactions: Use secure connections when accessing sensitive information online.

If you become a victim of identity fraud, immediate action is crucial. Contact your bank or credit card company and report the incident to your local police on the non-emergency number, 101. You can also report the fraud to Action Fraud, the UK’s national reporting centre for fraud and cybercrime.