Fraud prevention service, Cifas, reports that identity fraud was the most prevalent type of fraud reported last year.
Cifas found that reports to the National Fraud Database (NFD), where member organisations record instances of fraud, increased by 13% in 2024, also making it the highest number on record. Of the 421,000 cases recorded on the database, almost 250,000 related to identity fraud.
Identity theft and fraud can happen to anyone. Read on to learn what to do if you become a victim.
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What is identity theft and fraud?
Identity theft is when a fraudster steals parts of your identity, such as your name, address and phone number, in order to commit identity fraud.
Typically, this data is gathered through social media, data breaches of organisations which hold information on you, or through phishing messages where you’re persuaded to hand over your data or when you click a dodgy link and malware is downloaded to your devices.
Identity fraud is when fraudsters go on to use this information they’ve gathered about you to their own gain by obtaining goods or services in your name. This can be done through opening a bank account, obtaining credit cards, loans and state benefits and acquiring passports and driving licences, all under your name.
AI fuelling identity fraud increase
Cifas reports that cases of account takeover, where fraudsters hijack accounts using compromised data, drastically increased by 76% in 2024, with over 74,000 cases recorded.
There were also increases in fraudsters impersonating victims through personal store cards, personal bank accounts, personal credit cards and motor insurance.
Criminals hijacking mobile phone accounts made up half of all account takeover cases, rising by 105%. Cases of Sim-swap fraud, where criminals steal your mobile number and link it to their own Sim, also skyrocketed with 3,000 cases reported, a 1,055% increase.
There was also an increase in cases of false applications, when fake information is used to obtain documents. Cifas noted that artificial intelligence (AI) has helped with the speed, sophistication and scale of false documentation, as well as aiding the ability to pass verification checks.
What to do if you’re a victim of identity theft and fraud?
If you’re worried that your personal details have been stolen and you could become the victim of identity fraud, you should check your credit file to see if any new accounts have been opened in your name that you don’t recognise.
If you believe you have been a victim of identity theft, Cifas offers a protective registration service that places a flag alongside your name and personal details in its secure National Fraud Database, costing £25 for two years. Organisations that are members of the database will see that you’re at risk and take extra steps to protect you, preventing fraudsters from using your details to apply for products and services.
You should contact your bank, credit card company and the local police on the non-emergency phone number, 101, as soon as possible if you find you’re the victim of identity fraud. You can also report the fraud via Action Fraud, the police’s fraud-reporting service.
Visit our guide for tips on how to avoid identity theft and fraud.
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