While the vast majority of consumers stay honest, UK businesses still face a battle against first-party fraud as financial pressures persist – according to new data from global information and insights company TransUnion.

Despite sustained cost of living pressures, with data showing that almost half of people (43%) feel their household income is not keeping up with inflation, 74% of consumers still say they would be unlikely to give false information to get a preferential rate on a financial product. However, 19% of adults admit they would consider providing incorrect details to get better rates – with the rest being unsure.

Chad Reimers, General Manager of Fraud & Identity at TransUnion in the UK, continues: “First-party fraud is a perennial issue for organisations and that’s why it is essential to have effective data and technology solutions in place to facilitate trust between consumers and providers. TruValidate from TransUnion delivers an accurate and comprehensive view of each consumer by linking proprietary data, personal data, digital attributes and device identifiers, meaning you can protect your business by identifying anomalies and misrepresentation while still offering a personalised, friction-right experience for customers to help achieve safe, smart top-line growth.”

The link between financial insecurity and falsifying information

Demonstrating the link between financial insecurity and potentially falsifying information, Gen Z and Millennial consumers are significantly more likely to be driving this trend than other age groups. In order to get a better rate, 44% of 18–24-year-olds indicate that they would consider giving incorrect personal details, while 38% of 25-34-year-olds say the same.

The trend also indicates that consumers may lack awareness of alternative, legal ways to get better deals. This can include taking more time to shop around, accessing pre-approved deals for financial products, or crucially, checking your credit score and taking simple steps to improve it.

In fact, 86% of people who used a credit monitoring service in the past say that it ended up helping them with their finances in at least one way. This includes identifying action steps to improve credit scores (31%), checking for fraudulent credit applications using their ID (27%), or identifying opportunities to refinance their current loans or obtain a lower rate on a credit card (19%) – all of which can eliminate the need to consider giving false information.

What consumers consider acceptable to falsify

In terms of what types of false information are seen as most acceptable by consumers to give to financial providers, one in six (16%) say they have no problem with opening an account with a different email address to access a preferential rate or offer for new customers.

Meanwhile, 11% don’t see an issue with putting yourself as a named driver on a vehicle for someone else, even though you don’t drive it. A similar proportion (9%) think the same about receiving money from a third party into your bank account and forwarding on to someone else in exchange for commission. Just 7% say they think it is acceptable to exaggerate or downplay your income in an application.

However, it is important for consumers to remember that even changing a small detail or two can technically count as committing fraud, which comes with big legal and financial risks to the individual but also drives up the costs of doing business to organisations, leading to increased prices of goods and services.