According to Nick Mothershaw, director of fraud and identity solutions at Experian, “Attempted fraud is on the increase and the nature of the threat is changing. Organised criminal fraudsters are moving into the mass-market, looking beyond those with obvious wealth towards lower-value but more vulnerable targets. At the same time, financial stress brought about by the recession is driving increasing numbers of people to commit fraud to maintain their lifestyles.”
As a result of these changes in economic and threat disposition, financial institutions could be faced with rising fraud attacks during 2010. The report suggests that UK mortgage and insurance providers could be hit to the tune of £1.2 billion and £2.5 billion worth of fraud respectively in 2010. What happens over on that side of the pond does not tend to stay there. Expect similar numbers in North American markets as the fraud schemes are refined and prove themselves lucrative.