The UK’s Fraud Prevention Service

CIFAS and Fraud …It’s all going on

Barry BrennanFraud and Underwriting Manager

Lloyds Banking Group

AAT Birmingham Branch-February 2012

Tonight’s Presentation

• The fraud climate• How CIFAS fights fraud• Fraud types and trends• Combating staff fraud• Future challenges

The scale of the problem

Some facts and figures:

British Crime Survey 2010-2011

• 2,051,048 burglary/thefts • 145,841 fraud/forgery offences

The NFA estimates the cost of fraud to the UK economy to be:

Over £38 billion per year! (2011)

603 data breaches reported to the ICO in 2010

• 388 + by the public sector• 192 + by the private sector• 23 by others (e.g. charities)

That means?

£765 per year for every man, woman and child in the UK

Other bodies fighting fraud

There are many other bodies whose work is fundamental to the fight against fraud in the UK, e.g.

• The police

•NFA: National Fraud Authority

• NFIB: National Fraud Intelligence Bureau

• Action Fraud: National Fraud Reporting Centre

(and latest scam details)

• FSA:Financial Services Authority

• Credit Reference Agencies: e.g. Callcredit, Equifax, Experian

• Private Sector Associations: e.g. UK Payments, ABI, IFB, IFIG

How CIFAS fights fraud

• The CIFAS National Fraud Database

• Formed by 8 retailers in 1988

• Police advice: “treat fraud as NON-COMPETITIVE”

How CIFAS fights fraud

• A UK wide membership association

• A “not-for-profit” association funded by its Members

• All Members share information on confirmed frauds

CIFAS Membership

260+ Members:

• Banks/Building societies• Mortgage lenders• Credit cards• Retail credit (store cards)• Mobile phones• Asset finance (vehicles)• Insurance• Mail order• Share dealing• Public sector (5 so far) SLC,

UKBA, LSC,FSA, Big Lottery Fund

Participating Agencies:

• Fraud prevention agencies: Callcredit, Equifax, Experian, EDA and Synectics

Affiliate Members

• Companies who are not able to join CIFAS, but work closely with CIFAS and its Members

Benefits reported by Members

Over £4.1 billion worth of fraud was prevented through

use of CIFAS over last 5 years

What is ID Fraud

• Identity Fraud can include:

• Identity Theft: Stealing an identity without victim’s knowledge or consent, eg name, DOB, address.

• Use of a fictitious identity.

• These details are then used to obtain goods or services and/or as part of more serious, organised crime

• Companies can also be victims of identity fraud

Where does threat come from?

• Information hacked or “gone missing”/stolen/lost in transit/disclosed in error 

– unencrypted laptops, computer discs, memory sticks

– paper records

• Internal Fraud

– Resentful or recession hit employees

• Organised Fraud

– Threat or bribery of existing employees

– Infiltration of organisations

Where does threat come from?

• Direct attacks on individuals

– Theft/burglary/mugging– Phishing - email attacks– Smishing – text attacks– Vishing – VoIP attacks– Internet/online banking attacks– Compromised cash points

• Family Members

Celebrity Victims of Identity Fraud

• Oprah Winfrey• Robert de Niro• Tiger Woods• Will Smith• Steven Spielberg• Jennifer Lopez• Jeremy Clarkson• Alistair McGowan

Tips to protect your own identity!

• Shred all documents before discarding

• Examine all bank/credit card statements

• Regularly check your credit file

• Redirect post when moving and monitor receipt of post

• Treat your personal data as ‘confidential’

• Limit info on social networking sites

If you’ve been a victim

• Don’t Panic!

• Check your credit file

• Check your bank and card statements – contact your bank to inform them of any fraud on your account

• Take out Protective Registration - – places warning on credit file to alert organisations to

threat of your identity being used fraudulently

• Contact the credit reference agencies ‘one stop shop’• Report to www.actionfraud.org.uk

Protecting your business’ identity

• Protect your corporate ID as you would your own!

• Register for PROOF with Companies House– (PROtected Online Filing) scheme

• Provide a service address to Companies House

• Check your customers/suppliers– Companies House, ID checks, Corporate Credit

Agencies etc

Advice on ID Fraud

www.identitytheft.org.uk

• Advice for consumers

• Advice for businesses

Other sites:

www.getsafeonline.orgwww.oft.gov.ukwww.actionfraud.org.uk

Why?

But what makes people turn to fraud?

Recent trends in fraud generally

Recession has side effects

• Desperate people turn to fraud to make ends meet• 25% increase in fraud over past 5 years• Credit crunch means fraudsters turn away from application

fraud to, say, identity fraud• Growth in fraudsters persuading innocent individuals to let

them use their bank account (fraudulently) for a small fee – (mules) leaving the mule without funds and in trouble

• Significant increase in mail order fraud • More people selling vehicles still owned by finance company• Rise in those claiming falsely to be ID fraud victims – or ID

frauds committed by close family …

And in 2011 - 12

The two most anticipated frauds are:

- Olympic ticketing frauds- Olympic accommodation frauds

Fraudsters always looking for the latest opportunity

If you think it might be a fraud

Check:

www.actionfraud.org.uk

What next?

CIFAS and fraud prevention in the UK still have many challenges to face:

– Technology as a fraud enabler– Recession and unemployment as fraud drivers– Changing behaviour of fraudsters

Thank you

Thank you

www.cifas.org.uk