NESTA Crime Online - University of Brighton Repository
NESTA Crime Online - University of Brighton Repository
NESTA Crime Online - University of Brighton Repository
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Source: Elaborated from CIFAS online, UK’s Fraud Prevention Service. www.cifas.org.uk<br />
Available statistics indicate that identity fraud is on the rise. Attempted identity frauds<br />
rose 21.5 per cent from 2005 to 2006 and 12 per cent from the first half <strong>of</strong> 2007 to<br />
2008. 57 Moreover, from 2007 to 2008 CIFAS members reported a 159 per cent increase<br />
in account takeover fraud. 58 However, detection and prevention techniques seem to be<br />
increasingly efficient, since the number <strong>of</strong> attempted ID frauds detected before an<br />
account was opened increased during 2006 by almost 40 per cent. This means that a<br />
higher proportion <strong>of</strong> the victims whose identities had been compromised never had any<br />
money stolen from their accounts, or products taken out in their name. 59<br />
While the impact <strong>of</strong> identity fraud is not easy to gauge, 60 the Identity Fraud Steering<br />
Committee (IFSC) 61 estimated the cost <strong>of</strong> ID fraud to the UK economy at £1.2 billion in<br />
2007, the equivalent to £25 per person. Major updates in accounting and calculation<br />
methodology make this figure incomparable with previous estimates <strong>of</strong> £1.3 billion in<br />
2002 and £1.7 billion in 2006 from the Cabinet Office. 62<br />
Other reports suggest that identity fraud activity may only represent a small fraction <strong>of</strong><br />
total online fraud. For instance, the 2008 Symantec security threat report 63 indicated<br />
that identity theft information for sale, as advertised on underground servers,<br />
represented only 7 per cent <strong>of</strong> all the categories for sale in 2007, and 10 per cent <strong>of</strong> the<br />
type <strong>of</strong> information most demanded by cybercriminals. Since full identities consist <strong>of</strong> a<br />
combination <strong>of</strong> multiple pieces <strong>of</strong> information (name, address, mother’s maiden name,<br />
57 According to CIFAS; see www.cifas.org.uk.<br />
58 When a fraudster impersonates an individual in order to 'take over' his/her bank account.<br />
59 See www.cifas.org.uk.<br />
60 Cabinet Office, (2002), “Identity Fraud: a study”.<br />
61 The Identity Fraud Steering Committee (IFSC) was set up by the Home Office in 2003 to work with public<br />
and private sector organisations to identify and implement cost effective measures to counter identity fraud.<br />
See www.identity-theft.org.uk/committee.asp.<br />
62 The initial figure added overlapping figures from CIFAS and APACS, and included other payments not directly<br />
related to identity fraud. Home Office Identity Fraud Steering Committee (IFSC), “New Estimate <strong>of</strong> Cost <strong>of</strong><br />
Identity Fraud to the UK Economy”, available at http://www.identity-theft.org.uk/cms/assets/cost <strong>of</strong> identity<br />
fraud to the UK economy2006-07.pdf.<br />
63 Symantec (2008), “Symantec Report on the Underground Economy”, July 07–June 08.<br />
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