A recent fraud survey from a UK consortium reveals an alarming evolution in criminal tactics, indicating that while traditional methods are being disrupted, fraud is not only growing but becoming increasingly sophisticated.

Mismatched Trends Highlight Adaptation

Cifas, the organization behind the findings, reports a significant increase in fraud cases, with a record number of reports recorded through the first six months of this year. While identity fraud has declined by 7% year-over-year, Cifas warns that this reduction does not indicate success but reflects criminals’ shifting strategies.

The main focus now is on account takeover, particularly facilitated by advanced tools often driven by AI. Cybercriminals are employing these sophisticated methods to bypass detection more effectively than ever before, especially in the context of mobile devices.

Rise of Misuse of Facility

In addition to these trends, Cifas also noted a sharp rise in first-party fraud cases—where legitimate customers misuse their accounts for fraudulent activities. This type of fraud has seen a 35% increase according to the data, and it is increasingly viewed as less severe by some consumers.

Justifiable or Commonplace Behavior

A separate study from FICO corroborates this view, revealing that nearly one-third of respondents believe falsifying credit applications can be justified in certain situations. Furthermore, first-party fraud has become the most prevalent type globally as inflation and rising interest rates force people to find alternatives.

These financial pressures have driven many consumers into desperate measures. Notably, Cifas found an increase in individuals selling their identities after being promised financial rewards. However, while this might offer a temporary solution, it can lead to long-term consequences such as damage to credit scores and legal repercussions.