Company Directors at Greater Risk of Identity Fraud – Cifas and LexisNexis Risk Solutions Report Reveals

Company Directors at Greater Risk of Identity Fraud – Cifas and LexisNexis Risk Solutions Report Reveals
15.06.2017 09:00 am

Company Directors at Greater Risk of Identity Fraud – Cifas and LexisNexis Risk Solutions Report Reveals

Fraud Detection

new collaborative report, released today by Cifas, the UK’s leading fraud prevention service, and LexisNexis® Risk Solutionsan information solution provider that helps organisations assess, manage and predict risk and part of RELX Group, highlights that company directors are one of the most at-risk groups for identity fraud. Nearly 19% of identity fraud victims are company directors, this is despite company directors comprising less than 9% of the UK’s population.

Furthermore, the report also identifies a trend where identity fraudsters targeting company directors are attempting to obtain credit files as a pre-cursor to committing identity fraud. Nearly half (47%) of recorded identity frauds involving the fraudulent procurement of credit files from company directors took place in London and the South East, with 28% coming from the capital. This contrasts sharply with comparatively safe regions such as Wales and the North East which accounted for just 2% of these fraud cases respectively.   

The report utilises research spanning three and a half years of impersonation data extracted from the Cifas National Fraud Database, which contains the details of impersonation recorded by its member organisations, and further qualified with additional data provided by LexisNexis Risk Solutions.

Not only were company directors statistically more likely to be victims of fraud, but as with other victims they were also found to be at risk from multiple impersonations, with 17% of director-level victims suffering impersonation fraud more than once across the three and a half year period. This comes at a time when identity fraud is at an all-time high, having risen by over 68% since 2010 to almost 173,000 individual cases in 2016.

The report also shows that company directors who fell victim to fraud were likely to be younger than other groups who were impersonated. Nearly a third (28%) of director-level fraud victims were in their 30s. This contradicts any notion that identity fraudsters deliberately target older people based on their perceived affluence and status in life and instead find greater success with younger generations who are likely to have a typically larger digital footprint.

Lady Barbara Judge CBE, Chairman of Cifas, commented on the report:

“With almost one in every two crimes a fraud or cybercrime, company directors are increasingly aware of the need to have the right systems and processes in place to protect their staff and customers from this growing threat. This research reveals that they themselves are at increased risk of identity fraud in comparison to the rest of the UK. 

“There will always be more publicly available information about you if you run your own business compared to other individuals. I however would encourage company directors to do as much as possible to separate their personal and company personas. Limit the personal information you share on social media and professional networking sites, and proactively check your credit file and your accounts. The quicker you spot that your details have been used fraudulently, the easier it will be to limit the damage caused.”

Related News

Financial scam warning as cybercriminals exploit COVID-19 pandemic fears

GoCompare is urging people to stay safe online as official statistics show a dramatic increase in phishing and online shopping scams, with cybercriminals looking to capitalise... Read more »

Chargebacks911 Launches Partner Onboarding App for Gateways, Fraud Filters and Merchant Service Providers

Chargeback dispute management specialist, Chargebacks911, today launches a new onboarding product for partners that allows merchants to connect to their technology platform... Read more »

Enfuce Futureproofs its Enterprise Fraud Monitoring with Featurespace

Featurespace™, the world leader in financial crime risk management for fraud and Anti-Money Laundering,... Read more »

Leading French banking group engages AxiomSL’s comprehensive Global Shareholding Disclosure (GSD) solution

AxiomSL, the industry’s leading provider of risk and regulatory reporting solutions, announces an agreement with a global... Read more »

CICC and Keesing Technologies partner to prevent identity fraud in Caribbean region

Caribbean Identity Compliance & Consultancy (CICC), a specialist provider of custom built Anti-Money-Laundering (AML) and... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel