Study: Britons suffer greatest financial losses to identity theft
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A new study shows Britons are experiencing higher financial losses due to identity fraud than people in other developed nations.
According to a recent survey by Adyen, a financial technology platform, over 20 percent of Britons have been victims of impersonation in the past year, with an average loss of £268 per person. This is the highest loss per person among the 26 countries surveyed.
Identity fraud is the theft of a person’s personal information to commit a crime, such as opening credit accounts in their name or making unauthorised purchases.
The study also showed that Norway was the second worst-hit country, with victims losing an average of £256 each. This was followed by Denmark, where victims lost an average of £232. In the United States, 42 percent of respondents said they had experienced identity fraud, losing an average of £230. While India had the highest proportion of victims (nearly half of those surveyed), the average loss was much lower at £40.
These findings are consistent with recent data from UK Finance. While the number of other types of scams has declined in the UK, identity fraud nearly doubled in the past year.
Another survey also supports the findings of this study. A poll published in September by the Global Anti-Scam Alliance (GASA), in association with Cifas, found that 10 percent of Britons had lost money to scams or identity theft in the previous 12 months. The total financial losses were estimated at £7.5 billion.
“Payment fraud is endemic across the UK, driven by new sources like push-payment scams, as well as traditional identity theft. Newer technologies like AI have contributed to creating a breeding ground for scammers,” said Alexa von Bismarck at Adyen.
According to Von Bismarck, UK retailers are easy targets for fraudsters, with only half of businesses using an effective fraud system.
Anyone can be a victim
Fraudsters in the UK have become increasingly sophisticated, exploiting current events such as COVID-19, Brexit, and the popularity of WhatsApp and Bitcoin to scam people via text messages and emails. Even the most careful people can be victims of identity theft.
Paul Davis, a 41-year-old fraud prevention expert at TSB, was recently the victim of identity fraud. Scammers used weaknesses in some firms’ security checks to open a mobile phone contract, an iPad contract, and an Argos credit card in his name.
“For me, it was an inconvenience that I was quickly able to sort,” said Davis in an interview with The Times.
“But for many households, it understandably causes panic and concern to discover that you appear to owe hundreds, sometimes even thousands of pounds.”
Luckily, Davis was able to act quickly when he realised he was being defrauded last November. He cancelled all the accounts in his name, thanks to his experience dealing with such cases.
Eric Fergusson, a director of an e-commerce company, was another victim of identity fraud. He received a letter from O2 confirming a new mobile phone contract he had never opened. After multiple complaints, O2 eventually closed the accounts.
Protecting yourself against identity theft
Identity theft is a serious concern for everyone, especially high-net-worth individuals, as they have more assets to steal. Fraudsters are more likely to target these individuals because they believe they can profit more significantly. In order to reduce the risk of identity theft, take the following precautions:
First, keep personal documents secure, like your passport and bank statements. If you want to throw away old papers with your name and address on them, shred them.
Then, regularly watch your credit report and review your bank statements for anything suspicious, especially those you don’t remember doing.
Lastly, be cautious about sharing personal information on social media. Ensure online purchases are secure by checking for contact details, a padlock symbol, and “https” in the web address.
If you need extra protection to keep your data safe, you can hire the help of security companies like Marengo. These companies offer specialised solutions to safeguard your digital as well as your physical data.
Source:
https://www.thetimes.co.uk/article/britons-lose-most-when-fraudsters-steal-identity-mnqxx2tfm
https://www.thetimes.co.uk/article/scams-uk-news-vodafone-o2-ipad-contract-bank-fraud-3gjp3nd9k
