This type of fraud occurs when a criminal uses a fraudulently obtained card or card details, along with stolen personal information, to open or take over a card account held in someone else’s name.
This type of fraud can be split into two categories:
Application Fraud – Application fraud occurs when criminals use stolen or fake documents to open an account in someone else’s name. Criminals may try to
steal genuine documents such as utility bills and bank statements to build up useful
personal information. Alternatively, they may use counterfeit documents for identification purposes.
Account Takeover – This involves a criminal fraudulently using another person’s credit or debit card account, first by gathering information about the intended victim, then contacting their bank or credit card issuer whilst masquerading as the genuine cardholder. The criminal will then arrange for funds to be transferred out of the account, or will change the address on the account and ask for new or replacement cards to be sent to the new address.
The cost of card ID theft
Card ID theft fell by 20% in the past year to £38.2 million, and now accounts for just under 9% of overall card fraud losses.
- Application fraud fell by 9% in the past year to £10.1 million.
- Account takeover fell by 23% in the past year to £28.1 million.