The Monthly Threat Update produced by the National Fraud Intelligence Bureau (NFIB) aims to provide a brief assessment of key threats that are currently happening in the UK and highlight any predicted trends likely to occur.
Identity theft is when your personal details are stolen and identity fraud is when those details are used to commit fraud.
Criminals commit identity theft by stealing victim’s personal information. This is often done by taking documents from victim’s rubbish or by making contact with the victim and pretending to be from a legitimate organisation. Fraudsters can use identity details to:
The Home Office estimated that in 2008 alone, ID fraud cost £1.2 billion in the UK.
The Home Office has adopted a model to fight ID fraud based on four pillars:
Holiday fraud occurs when a person pays for a holiday, flights or accommodation that doesn’t exist or hasn’t been booked. The Association of British Travel Agents (ABTA) estimated the loss for all holiday fraud in 2012 was £1.5 million.
The growth of the internet and an increase in the number of travel options has made it easier for fraudsters to trick consumers. A typical holiday fraud offence may start with a victim searching online for cheap deals before coming across a fraudulent or cloned website set up by an offender.
Fraudsters also advertise holiday villas or apartments that don’t exist. Most scams occur on websites where owners advertise their accommodation directly. The victims then pay money as a security deposit directly into the fraudster’s bank account.
Fuel cards are traditionally used for business vehicle fuelling to help save time and money. Fuel cards offer a discount on petrol and diesel prices at the pump.
Many employees use their business fuel card for their own advantage, such as filling up their personal vehicles.
Suspects have used hire vans which pull up close to the pump, fill up empty plastic containers and re-sell the fuel at full price or the fuel is stored in garages.
Fraudsters can also clone the magnetic strip on the rear of the card and the data can be transferred over onto a fake card.
The threat can be managed by:
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.