Cases of attempted current account fraud at all-time high

Current account fraud is on the rise, according to new research by data and credit-checking firm Experian .
The study shows that fraud of this type is at a three-year high, with 44 out of every 10,000 current account applications made in the first three months of 2012 found to be fraudulent.
The rate represents an increase of 23 per cent on the final quarter of 2011 and is the highest since 2009, when Experian started collecting data on current account fraud.
According to its research, the most common type of current account fraud involved individuals trying to pay for goods or services through an account that did not have enough funds to cover the payment.
Providing false information, including not revealing bad credit histories, in an attempt to open a new account or obtain an overdraft was also found to be a commonly used tactic amongst fraudsters.
Total cases of attempted fraud across the financial services industry rose by 16 per cent during the first quarter, with around 19 in every 10,000 applications for financial services deemed to be fraudulent.
Rises in credit card fraud and insurance fraud were recorded, but fraudulent loan applications fell to its lowest ever level, with four in every 10,000 applications deemed to be fraudulent – down 38 per cent on the previous quarter. Attempted mortgage and savings fraud also fell compared to Q4 2011.