The increasing risk of identity fraud at Christmas

It has been another busy year for fraudsters. With consumers seemingly targeted by an ever-increasing range of tricks and scams designed to part them from their money or personal information, the risk has never been greater.

New insights from Experian show that identity theft has risen by more than a fifth (21%) over the course of 2022. The trend becomes more severe during the festive period, with cases rising by up to 15% in November and December over the last four years, as fraudsters take advantage of the increase in online transactions, and a reduction in business resources to investigate potential fraud, to attempt to access credit with stolen personal details.

The extent of the problem is significant. Experian’s anti-fraud services prevented more than £1.8bn of fraudulent transactions in 2021, highlighting the size of the risk fraud poses to both businesses and their customers. It has never been more important for organisations to confirm the legitimacy of their customers' information and ensure they are not being duped by a fraudster using stolen personal information.

Fortunately, technology is helping to fight the battle. New, cutting-edge technologies incorporating machine learning are bolstering efforts, while regulations like the Payments Service Directive 2 (PDS2) are also having a positive impact. Awareness among consumers about keeping their personal information safe is growing all the time.

To continue to raise that awareness, Experian has launched a new social media campaign encouraging people to look after their personal information and for businesses to think about their fraud risk, all through the view of a sceptical little girl who really wants to make sure that Father Christmas is who he says he is.

That risk will only continue to grow in 2023, costings victims significantly. Fraudsters never rest – not even over Christmas – and the issue is that they are always looking to find new and inventive ways to exploit any opportunity.

At this time of year, we expect there to be a surge in delivery scams for example - it’s an ongoing battle which both businesses and consumers need to be aware of. It’s critical businesses and consumers remain vigilant and prepared for new and emerging threats and scams as we enter the new year and beyond.