The level of fraud, including misuse of good and bad credit credit cards, increased during 2011, reaching the highest figure on record. This troubling trend was revealed in the latest report from nonprofit fraud prevention organization CIFAS.
There was a nine percent increase in the overall fraud level and a nearly one-fifth increase in fraudulent use of a credit card, mobile phone, or bank account.
During 2011, CIFAS members reported the most instances of fraud, over 236,500. Identity fraud was involved in more than 48 percent of these cases. Fraudulent use of identifying information increased by 10 percent in the UK between 2010 and 2011.
This trend is not limited to the region, as identity theft is a global issue.
The findings also revealed an 18 percent increase in facility takeover fraud, which occurs when an unauthorized individual accesses a bank or credit card account and uses it fraudulently. In a five-year period, facility takeover fraud has increased by almost 300 percent.
Though some of the activities are committed by organized criminal groups, others are committed by people in dire financial situations.
Experts point to ongoing economic uncertainty as one reason for increasing levels of fraud. As personal financial situations are affected by future austerity measures, economic crimes like these will remain a threat.
CIFAS Communications Manager Richard Hurley warned consumers to protect their personal data. Whether they have good or bad credit cards, UK consumers should guard their account information.
Consumers should not provide credit card details and other financial information to websites when they are using smartphones or public Wi-Fi hotspots. After checking their credit card and bank accounts online, they should log off of the sites.
Credit card holders should also be alert to phishing emails that direct them to a seemingly legitimate website that requests credit card details.