Latest news with #Cifas
Daily Mail
21-05-2025
- Business
- Daily Mail
Half of fraud now comes from customers ripping off companies
Over half of fraud reported by firms in the UK now stems from their own customers, rather than professional fraudsters. Known as 'first-party' or 'friendly' fraud, this is now the most common type of fraud reported by companies and accounts for 51 per cent of instances, a report by risk analysts Lexis Nexis Risk Solutions reveals. First-party fraud is when customers give a company false personal or account information for financial gain. This could include lying on a loan application, claiming a genuine credit or debit card purchase is fraudulent to get a refund, or claiming goods ordered online were not delivered when they were. The findings were drawn from an analysis of over 104billion global transactions over the past 12 months, including across ten of the UK's largest banks. It represents a significant shift in the make-up of fraud attacks, with first-party fraud now the leading type in the UK – up 33 per cent on last year. It has surpassed both account takeover fraud and scams which have been the dominant forms of fraud since 2020. One in eight people admit to having perpetrated one or more types of first-party fraud within the last 12 months, according to research from fraud prevention agency Cifas. Almost half of people believe it is reasonable to commit first party fraud, suggesting a normalised view of this type of fraudulent activity. 'It represents a notable shift in global fraud patterns, with consumers now emerging as the single largest source of human-initiated fraud,' says Stephen Topliss, vice president of fraud and identity at LexisNexis Risk Solutions. First-party fraud is exacerbated by periods of inflation and the rising cost of living. Increased liability on firms for shouldering losses through scams, driven by regulation, is also likely having an impact. Buy Now, Pay Later (BNPL) providers and financial institutions are understood to be among the organisations reporting an uplift in first-party fraud. Payments services giant Mastercard, which services the likes of NatWest and Lloyds Bank, forecasts that chargebacks - refund requests from debit and credit card holders for payments they don't recognise - are set to rise 23 per cent by 2028. This is due in part to the global rise in digital transactions. But 45 per cent of the current chargeback volume is fraudulent, according to Mastercard, with 21 per cent of this being due to first-party fraud and 25 per cent being down to third-party identity theft. This means it is quickly becoming one of the largest types of fraud merchants are battling. Other forms of fraud still remain a threat, however. Account takeover fraud – fuelled by phishing activity – accounts for 15 per cent of reported fraud in the UK. Common amongst this is password reset fraud, where a victim receives a password reset email and inadvertently surrenders their login details to a fraudster. One in ten password reset attempts in the UK was a fraud attack last year, rising to over one in four reset attempts initiated on a desktop computer. But more challenging to firms is the rise in cybercriminals embracing AI in sophisticated scams. On a global level, the attack rate on communication, mobile and media companies has increased by 15 per cent year-on-year, and global financial services firms saw an 18 per cent uplift in automated bot attacks. For this reason, Topliss believes we could now be at a tipping point for a 'global fraud storm' powered by AI. He says: 'While many organisations have improved their defences over the past few years, we also know that cybercriminals are embracing new innovative, AI-enhanced capabilities and we will likely see these extensively tested and executed over the coming months. 'Our analysis of attacks over a longer multi-year period shows that significant attacks often come in waves and this latest set of figures could indicate the imminent arrival of the next, AI-enabled wave of global attacks.'
Yahoo
17-05-2025
- Business
- Yahoo
Couple trace fake firms to single block of flats
A couple found they were the victims of identity fraud after their address was changed without their consent and fake companies and accounts set up in their name. An investigation by the couple then led them to discover a number of companies listed as being based at the same address, a block of flats in Solihull, in the West Midlands. Sophie, whose name has been changed to protect her identity, said they faced months of stress and felt they had a lack of support from Companies House. A spokesperson from the government agency, said: 'Prior to the introduction of the Economic Crime and Corporate Transparency Act there were limited powers to validate the information that was delivered to her. "New powers under the Act allow us to act more quickly if people inform us personal information has been used without their consent.' Sophie told the BBC she first discovered something was wrong when her husband's postal vote did not come through for their local elections in 2023. They contacted the council, who told them their address had been changed without the pair knowing about it. Sophie then received a letter from a trade company asking her husband to confirm a business account for a company that was not theirs. Acting quickly, the pair contacted Action Fraud and the UK fraud prevention group Cifas to flag the issue. This then led to them receiving several letters from bank and credit companies telling the couple attempts were being made to set up accounts in their name. Sophie's husband was also listed as the director of another company. As the couple have a legitimate business themselves, she said they wanted to act quickly and contacted Companies House about the fraudulent companies. To knowingly register false information with the agency is a crime under the Companies Act. But the process of getting a person's name removed from a business was "not straightforward", according to Sophie. "They first write to the registered address and ask the named director to provide further proof of their ID," she added. "They are given several weeks to respond, during which time the business can still trade. "If they get no response, they will then move to dissolve the business, which again takes time. "I had to send a lot of details to them, which is ironic since they clearly didn't ask for details at the beginning when the companies were being set up." Sophie sought legal advice to see if the efforts could be speeded up but was told it would cost £2,000-4,000 in advice fees with another £10,000-15,000 if the matter went to court. "It took around four to five months to get his name removed, a lot of time. This chasing down has taken hours and hours of our time," she said. Sophie contacted her local police force about what had happened but said she did not receive a response. A spokesperson for West Midlands Police said they investigated allegations of identity fraud in Solihull in 2023 but "no suspects were identified". Sophie said her efforts to look into their situation led to her finding that the registered address of all the fake companies was a block of flats in Solihull. The block consists of about 30 apartments but Sophie said there were 24 different businesses registered there. They ranged from ones dealing in sweets and confectionary to others which said they were removal services and construction. "This highlights how easy it is to do, since the registration of adjacent addresses is lazy and obvious," she said. In most of the cases, Sophie found the names used to set up the companies belonged to a pensioner. "A lot of these people, particularly those in their seventies, they won't have a clue what is happening and wouldn't necessarily have the resources to chase it down," she said. "This could be hugely stressful for people and could actually end up costing them a lot of money. "We had to register for CFA's (Counter Fraud Authority) which aren't free, we pay for that now because we feel we need to check our credit score but that option wouldn't be open to everybody." Sophie said she believed their case was not unique. "This seems to be such an easy thing to do and there's really no comeback," she said. "It almost feels like, well, you might as well give it a go." The Economic Crime and Corporate Transparency Act became law in 2023 and was aimed at giving Companies House greater powers to remove invalid registered office addresses. But Sophie said she wanted to see more thorough checks of who was setting up new firms. "I think there must be thousands of people in the country who are directors of companies and don't even know," she said. "They need better identification for when you're setting up a company. Far better checks and balances when you're setting up a company. "It shouldn't be this easy." Contact the organisation concerned - whether it be a bank, credit card company or something else and let them know what's happened Report it to Action Fraud - individuals or businesses who have fallen victim to identity fraud should report it to Action Fraud on 0300 123 2040 or on their website. Get victim support - if you have been a victim of fraud, you can contact Victim Support for free, confidential advice and support Report fraudsters If you have information about those committing identity crime please tell independent charity Crimestoppers anonymously on 0800 555 111 or at their website Query suspicious mail - be suspicious of any unsolicited emails, even if it appears to be from a company you know of BBC Action Line also has links to organisations that may be able to help if you have been affected by a scam or fraud. You can find out more about how to stay Scam Safe here. Follow BBC Birmingham on BBC Sounds, Facebook, X and Instagram. Bogus firms registered at 16 addresses in one street The leafy street where 80 fake firms have swiped addresses 'We never knew our home was on the scammer's list' Woman 'left panicked' as bogus firm uses her address Companies House Action Fraud
BBC News
17-05-2025
- Business
- BBC News
Companies House: Couple trace fake firms to Solihull block of flats
A couple found they were the victims of identity fraud after their address was changed without their consent and fake companies and accounts set up in their investigation by the couple then led them to discover a number of companies listed as being based at the same address, a block of flats in Solihull, in the West whose name has been changed to protect her identity, said they faced months of stress and felt they had a lack of support from Companies House.A spokesperson from the government agency, said: 'Prior to the introduction of the Economic Crime and Corporate Transparency Act there were limited powers to validate the information that was delivered to her. "New powers under the Act allow us to act more quickly if people inform us personal information has been used without their consent.'Sophie told the BBC she first discovered something was wrong when her husband's postal vote did not come through for their local elections in contacted the council, who told them their address had been changed without the pair knowing about then received a letter from a trade company asking her husband to confirm a business account for a company that was not theirs. Acting quickly, the pair contacted Action Fraud and the UK fraud prevention group Cifas to flag the then led to them receiving several letters from bank and credit companies telling the couple attempts were being made to set up accounts in their husband was also listed as the director of another the couple have a legitimate business themselves, she said they wanted to act quickly and contacted Companies House about the fraudulent knowingly register false information with the agency is a crime under the Companies the process of getting a person's name removed from a business was "not straightforward", according to Sophie."They first write to the registered address and ask the named director to provide further proof of their ID," she added."They are given several weeks to respond, during which time the business can still trade."If they get no response, they will then move to dissolve the business, which again takes time."I had to send a lot of details to them, which is ironic since they clearly didn't ask for details at the beginning when the companies were being set up." Sophie sought legal advice to see if the efforts could be speeded up but was told it would cost £2,000-4,000 in advice fees with another £10,000-15,000 if the matter went to court."It took around four to five months to get his name removed, a lot of time. This chasing down has taken hours and hours of our time," she contacted her local police force about what had happened but said she did not receive a response.A spokesperson for West Midlands Police said they investigated allegations of identity fraud in Solihull in 2023 but "no suspects were identified".Sophie said her efforts to look into their situation led to her finding that the registered address of all the fake companies was a block of flats in block consists of about 30 apartments but Sophie said there were 24 different businesses registered ranged from ones dealing in sweets and confectionary to others which said they were removal services and construction."This highlights how easy it is to do, since the registration of adjacent addresses is lazy and obvious," she said. 'Hugely stressful' In most of the cases, Sophie found the names used to set up the companies belonged to a pensioner."A lot of these people, particularly those in their seventies, they won't have a clue what is happening and wouldn't necessarily have the resources to chase it down," she said."This could be hugely stressful for people and could actually end up costing them a lot of money."We had to register for CFA's (Counter Fraud Authority) which aren't free, we pay for that now because we feel we need to check our credit score but that option wouldn't be open to everybody."Sophie said she believed their case was not unique."This seems to be such an easy thing to do and there's really no comeback," she said."It almost feels like, well, you might as well give it a go."The Economic Crime and Corporate Transparency Act became law in 2023 and was aimed at giving Companies House greater powers to remove invalid registered office Sophie said she wanted to see more thorough checks of who was setting up new firms."I think there must be thousands of people in the country who are directors of companies and don't even know," she said."They need better identification for when you're setting up a company. Far better checks and balances when you're setting up a company."It shouldn't be this easy." What to do if you've been a victim of identity fraud Contact the organisation concerned - whether it be a bank, credit card company or something else and let them know what's happenedReport it to Action Fraud - individuals or businesses who have fallen victim to identity fraud should report it to Action Fraud on 0300 123 2040 or on their victim support - if you have been a victim of fraud, you can contact Victim Support for free, confidential advice and supportReport fraudsters If you have information about those committing identity crime please tell independent charity Crimestoppers anonymously on 0800 555 111 or at their websiteQuery suspicious mail - be suspicious of any unsolicited emails, even if it appears to be from a company you know ofBBC Action Line also has links to organisations that may be able to help if you have been affected by a scam or fraud. You can find out more about how to stay Scam Safe here. Follow BBC Birmingham on BBC Sounds, Facebook, X and Instagram.
ITV News
12-05-2025
- Business
- ITV News
Sim-swap fraud rises by 1,000% as criminals seek to exploit growth of two-factor authentication
The number of sim-swap frauds in the UK has increased by more than 1,000%, as criminals try to exploit the increasing reliance on businesses using two-factor authentication to protect their customers' data. The National Fraud Database says it has seen a 1,055% increase in the number of reports of sim-swap fraud, rising to almost 3,000 cases in 2024 from just 289 in 2023. Sim-swap fraud involves hijacking a person's mobile phone number and transferring it to a new sim without their consent. Once transferred, fraudsters can then receive texts and calls to that number, including important security checks like two-factor authentication. It is one of several tactics used in takeover fraud, where criminals take control of individual accounts to defraud their victims. Cifas, who operate the National Fraud Database, say this kind of takeover fraud had soared by 76% and older consumers remain the main target. It says the retail and telecoms sectors were particularly vulnerable. It is believed that sim-swap fraud one of the techniques used in the recent cyberattack on Marks and Spencer and the Co-op. News website Bleeping Computer reported the hackers gained access to both the Co-op's and M&S's networks by impersonating employees, contacting the retailers' IT helpdesks and tricking helpdesk staff into resetting passwords. Simon Miller, Director of Policy, Strategy, and Communications at Cifas said: "These figures are startling. In the mobile and telecoms sector, criminals are exploiting vulnerabilities in the system to assume control of people's mobile identities, with devastating consequences.'Phones are absolutely central to our lives. "Scammers are obtaining people's data through the dark web and then using it to get through the phone companies' systems because they have the full body of data that a company would expect." There are fears that the growth in the eSim, which effectively removes the need for a physical simcard will make sim swap fraud easier to carry out. How does a SIM swap scam work? First, the scammer will need to gain some data on the victim, which will usually be through buying hacked databases or phishing scams. Once they have enough data, including the victim's phone number, they will contact the victim's service provider and impersonate them. The fraudster will then trick the provider into swapping the victim's mobile number onto a sim card in the thief's possession. The thief now has access to the victim's phone number, meaning they can use it for outbound calls for further phishing purposes. But most importantly, they can now receive calls and texts to that number, including security checks like two-factor authentication that are used by numerous businesses as an extra layer of protection. With this, the fraudsters will be able to access many aspects of the victim's life. They will also be able to benefit from the victim trying to access their accounts when they realise something is wrong because they will be pushed a two-factor login code that will be sent straight to the scammer. Ian Finlay said he was on a cruise near Australia, and noticed something was wrong when his credit card was declined during one of the port stops. He told ITV's This Morning, he assumed it was a glitch, but then soon noticed some transactions on his current account that he had not authorised. He noticed fraudsters were paying for meals on his credit card and booked a holiday to New York on his current account. When Mr Finlay got home, he realised it was "something bigger" than a card scam and all of his finances had been affected with his savings account also raided. Eventually, he realised that combining the money spent in his name and money removed from his accounts totalled around £50,000. When he was asking "what I had done wrong" he realised he had done nothing wrong, he said: "Your mobile phone company has sent a duplicate sim to an address not connected to your account that somebody has put in a phone and then they've got everything they need to know about you." He added: "The added implication is that we are now also pushed into two-stage authentication. I was sat trying to look at my accounts, trying to get into them, getting a message saying we'll forward you a code. "That never arrived, I now know that was being skimmed off by the scammer, they were then using it to get into my account and do even more damage." How can you protect yourself against sim-swap fraud? There are several things you can do to avoid being the victim of sim-swap fraud. Consumer magazine Which? Has five tips. First, secure your mobile account. Ask your provider about any extra security that can be added to the account, like unique pins or authenticator apps that can be added on top of standard password verification. Second, turn on two-factor authentication. While sim-swapping fraud can specifically get around SMS-based two-stage authentication, if it was not already active on your account, then the fraudster would have an even easier time accessing it. You can also use several security apps to carry out the authentication, which does not rely on a mobile number and is what Which? recommends. Third, reduce information on your social media profiles. For the fraud to work, the criminal needs access to enough data to convince a mobile carrier they are you. Information like place and date of birth is often used as security questions and should not be visible on social media profiles. Fourth, if you ever receive information about your sim being changed or you unexpectedly lose phone service, contact your carrier immediately. Fifth, as soon as you've contacted your mobile carrier, contact your banks and ask them to freeze your accounts and change all your passwords.
Daily Record
29-04-2025
- Business
- Daily Record
Council Tax fraud rises as more people falsely claim single person discount to save money
Cifas, the UK's leading fraud prevention service, is urging people to consider consequences of Council Tax fraud when battling rising costs, as new research highlights an alarming trend in individuals dishonestly claiming the Single Person Discount. The Single Person Discount provides a 25 per cent reduction on Council Tax bills for households with only one adult. However, a recent Cifas survey of 2,000 UK adults found that one in 6 (16%) admitted to either falsely claiming the discount themselves or knowing someone who had done so in the past year. With rising Council Tax bills for most households across Scotland this year, Cifas' Fraud Behaviours Survey found that dishonestly claiming the Single Person Discount remains one of the 'most common' types of first-party fraud, alongside falsifying CV qualifications (18%) and retail non-delivery fraud (19%). The Cifas study also found that: Ahead of 'National Honesty Day' on April 30, Cifas is calling on people to act with integrity. Commenting on the findings, Rachael Tiffen, Director of Public Sector for Cifas, said: 'First-party fraud isn't a harmless crime - it's harmful. At a time when many households are feeling the squeeze of rising council tax bills, it's more important than ever to recognise that council tax fraud, including false claims for Single Person Discount, puts vital local services at risk. It can also result in serious consequences for those individuals who act dishonestly. 'Fraud against the public purse diverts funding away from the very communities that need it most. We understand times are tough, and that's why it's so important to support residents during challenging times without resorting to fraud. Ensuring people can report suspected fraud quickly and anonymously remains crucial.' Overall, nearly half (48%) of respondents said it was 'reasonable' to commit first party fraud. Discover more from the latest Cifas Fraud Behaviours Survey. You can view the full results here. Every local authority across Scotland has increased annual Council Tax bills for the 2025/26 financial year. The rises have been coupled with councils taking more rapid enforcement action, with West Dunbartonshire Council changing its policy earlier this month. Under its new rules, final Council Tax notices will no longer be issued to those who miss a payment, with only a single reminder notice sent, requiring action within 21 days. Anyone who fails to comply will lose their right to pay by instalments, meaning they will owe the full-year balance. The council will then make an application to the Sheriff Court to obtain a summary warrant, including a 10 per cent financial penalty, without any further notification. Advice Direct Scotland, which runs the free service, said stricter recovery policies are likely to have the biggest impact on vulnerable people. The charity revealed last month some households were already facing Council Tax debts of up to £15,000, before the April increase. Advice Direct Scotland are urging Scots struggling to pay their Council Tax bills to get help, before missing any payments or increasing existing debt. The charity is also aware of other Scottish councils moving more quickly to recover debt, with those who are already struggling with energy and living costs most likely to be affected. Advice Direct Scotland is able to support anyone affected by Council Tax recovery changes, and can guide worried households through the process if they miss a payment. Council Tax arrears are a 'priority debt', meaning they should be addressed before other debts to avoid harsher enforcement measures, such as bank or wage arrestment. Councils can seize benefits and take other actions to recover the owed payments, risking the loss of homes or tenancy agreements if left unresolved. Advice Direct Scotland urges anyone who has missed a payment to contact their council immediately and request to pay in smaller amounts, rather than waiting to be contacted. John Baird, head of debt services at Advice Direct Scotland, said: 'Any changes to the recovery process for missed Council Tax payments are most likely to affect people who are already struggling to pay their bills. The removal of final notices and the swift progression to summary warrants, including a 10 per cent penalty, could have serious implications for some. 'It is understandable that councils want to streamline the recovery process, but it is crucial that they also consider the potential consequences for individuals facing financial hardship. 'These new systems may lead to increased stress and worry, particularly for those who are unable to pay within the 21-day window or negotiate alternative payment arrangements.' He added: 'We urge local authorities to ensure adequate support and clear communication is provided to residents, especially those in poverty, to help them navigate these changes and avoid severe penalties. Our team is here to help anyone who is struggling, regardless of their personal circumstances, so please reach out and contact us.' Experts are available at or on 0808 196 2316.
