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A recent analysis of fraud trends during 2007 by CIFAS - the UK’s Fraud Prevention Service – has revealed an escalation in most variants of fraud. No less than 77,593 cases of identity fraud, which includes instances of false identity and identity theft, were reported during this period.
The threats posed by fraud are diverse and increasingly complex. CIFAS Chief Executive, Peter Hurst, comments “The rise in fraud should be of concern to us all. It is widely accepted that the proceeds of fraud fund both low-level and serious crime. On the one hand, fraud is known to be funding terrorist activities, the trafficking of young women into sexual slavery and the importation of drugs. On the other, it funds the purchase of drugs on our streets, fuelling anti-social behaviour and causing road deaths, while prostitution changes the character of local communities.”
Peter Hurst warns: “The impact on those affected should not be underestimated. Although innocent victims of identity crime are not required to foot the bill for a genuine fraud, the psychological damage can be severe and long-lasting.” However, he points out that in the case of investment scams and boiler room frauds victims can lose everything. Nor should it be forgotten that the financial institutions involved are also victims of fraud as they have to bear the cost, the charges we all pay for financial services have to be increased to cover fraud losses, so it is the community as a whole that suffers.
The figures reveal a sharp increase in facility takeovers. Also known as account takeovers, these crimes occur when the fraudster impersonates a victim in order to assume control of one or more of their bank or savings accounts. The number of cases of Facility Takeover filed by CIFAS members during the first quarter of 2008 has risen by an astonishing 146%, compared to the same period in 2007.
CIFAS feels that the increase could be due, at least in part, to the increasing sophistication of online ‘phishing’ - the use of spoof emails and websites designed to deceive recipients into divulging personal financial data such as credit card numbers, bank account numbers, user names and passwords - to facilitate the takeover. Phishing emails are becoming increasingly targeted and more cleverly worded, and CIFAS stresses everyone should be on their guard.
“Fraudsters are becoming increasingly astute in their methods. With some awareness of how lending decisions are made, they are therefore ‘tailoring’ their applications in an effort to beat the system. Following the economic downturn, with lenders increasingly using stricter lending criteria, fraudsters may be realising that large scale fraud is no longer an option so they are cutting their cloth accordingly.
“Furthermore, the alarming rise in facility takeovers suggests that, rather than creating new identities and accounts, fraudsters are increasingly siphoning off what is already available from their victims’ accounts.
So far, so threatening, but until recently Identity Fraudsters had easy access to ID card printing solutions that would allow for easy replication of identification documents. The Metropolitan Police has now launched an initiative to combat identification card crime. Called ‘Project Genesius, its main objective is to form a close working relationship between law enforcement and the printing Industry focused specifically on the supply of printing equipment that could be used for the manufacturing of false identities.
Project Genesius is a key part of ‘Operation Maxim’, which is a London-wide programme involving a dedicated team of Police and Immigration Officers and staff from Identity & Passport Service (IPS) and the Crown Prosecution Service (CPS), working together on pro-active intelligence-led operations targeting people involved in organised immigration crime, human trafficking and identity document abuse.
The ongoing liaison with the printing equipment industry is designed to prevent specialist machinery from coming into the hands of criminals involved in making false identity documents.
The illicit use of this equipment is a serious matter. Det Insp Nick Downing, Head of Project Genesius, said; “We have a joint responsibility to eradicate the abuse of card printers and associated equipment. By working together we will make it harder for organised criminals to obtain such equipment, which undermines both the industry’s reputation and the security of the United Kingdom.”
Operation MAXIM has obtained convictions for a wide range of immigration related offences during 2006-2007, including the conviction of a man for a visa scam whereby many people entered the UK on false documentation; sham marriages where young women, who thought they were going to be models, ended up as part of a criminal operation; and also disruptions of a number of illegal passport factories in London. A joint operation with the Identity and Passport Service uncovered people falsely endorsing passport applications and photographs.
The Met Police initiative is being supported actively and enthusiastically by Blazepoint Limited, who are major suppliers of leading brand Plastic ID Card Printers to the UK market. Rob Keywood, Blazepoint’s Director of Commercial Sales, comments; “As a prominent supplier of this technology we understand the importance of maintaining the industry’s reputation. By sharing relevant intelligence and identifying good practise in new customer profiling we hope to play our part in minimising economic fraud gained through the abuse of printing equipment.”
Rob Keywood urges suppliers of plastic ID card printer and consumables to use the latest profiling and data matching techniques to identify fraudsters before equipment is supplied. “There is no doubt that the battle against fraud will only be won if we all work together. Simple credit referencing is not sufficient and suppliers need to be vigilant, with enhanced profiling practices, and act upon any suspicions about the legitimacy of an enquiry.”
Contact James Munger-Styles for advice in complete confidence Email: or call +44 (0)1865 892 030.