“Fake credit card applications surged towards the end of 2021”


Credit card application fraud attempts rose at the fastest rate in five years in the last three months of 2021, according to a credit reference agency.

The fraud rate detected for cards increased by 42% between October and December 2021 compared to the previous quarter, marking the highest rate since 2017.

The data, taken from the National Fraud Hunter Prevention Service, was analyzed by Experian.

Nearly three-quarters of detected cases involved fraudsters using the victim’s current address to apply for credit, Experian said.



These numbers should serve as a warning about the importance of people taking care of their personal information.

Eduardo Castro, Experian

Eduardo Castro, Managing Director, Identity & Fraud, Experian UK & Ireland, said: “Genuine credit inquiries are trending up as we enter the busy Christmas shopping season, but the extent to which fraudsters have attempted to enjoy it this year is truly eye-opening.

“These numbers should serve as a warning about the importance of people taking care of their personal information. We need to be more vigilant online.

“For example, over-sharing of personal data on social media platforms is easy, but the consequences can be dire, with almost three-quarters of the cases we found using the victim’s current address.

“Meanwhile, businesses need robust fraud prevention systems to protect customers, and technology helps in the battle. Identifying fraudulent activity at the point of enforcement frees up time and resources for anti-fraud teams to investigate more complex cases. »

The rate hike can also be partly attributed to financial services fraud teams using a sophisticated combination of technologies, Experian added.

This allowed lenders to deny questionable applications quickly and efficiently, rather than flag them for manual review.

New forms of authentication, such as biometric systems, are also increasingly being used, he added.

Previous 5 Ways to Improve Your Credit Score in 2022
Next Omnicom's Annalect gets exclusive access to a wealth of information on consumer card purchases