IDENTITY FRAUD HOW COMMON IS IT? 

Identity Fraud Reported To Cost The UK Over £1.8 Billion

Identity fraud continues to grow and reports show that it now costs the UK an estimated £1.8 billion each year. It is one of the most common case types filed to the Cifas National Fraud Database by its 750-plus industry members – accounting for 64% of all filings in 2023 with more than 237,000 identity fraud cases recorded.

Cifas A Fraud Prevention Service

With the UK’s largest cross-sector fraud sharing databases, Cifas is a not-for-profit organisation working to reduce and prevent fraud and financial crime. Identity fraud is a growing concern in the UK, with a significant increase in reported cases. In 2024 Cifas a fraud prevention service, reported a substantial rise in identity fraud cases, with 421,000 reported, a 12.5% increase from the previous year, according to Security Brief UK.

Identity Fraud 

Identity fraud is the most common case type filed to the Cifas National Fraud Database, accounting for 59% of all filings in 2024. Cifas states its mission is “to detect, deter and prevent fraud in society by harnessing technology and working in partnership”.[1] Cifas operates two core fraud prevention databases that are claimed to be the largest in the UK: the National Fraud Database and the Internal Fraud Database. Its systems are also used by banks and building societies to access Home Office immigration data through a specialist portal.[2]

National Fraud Database (NFD)

The National Fraud Database (NFD) is the most comprehensive database of fraud risk data and intelligence in the UK. Hundreds of thousands of records are added every year by member organisations, and currently there are approximately two million records on the Database. This data and intelligence is shared in real time and online: 24 hours a day, seven days a week.

Key statistics and trends:

Increased reporting: Cifas recorded a significant rise in identity fraud cases, with 421,000 reported in 2024, a 12.5% increase from the previous year.

Financial impact: Identity fraud costs the UK an estimated £1.8 billion each year, according to Cifas newsroom.

Victim statistics: 24% of UK citizens have been victims of identity fraud, according to Stop ID Fraud which is the highest figure in Europe.

Digital nature of fraud: A significant portion of reported fraud cases are related to internet-based interactions, according to FinTech Global.

Targeting of youth: Criminals are increasingly targeting young adults, with social media playing a key role in recruiting “mules” for fraud activities.

Examples of how identity fraud is used:

  • Opening bank accounts or obtaining credit cards, loans, state benefits, driving licences, or passports in someone else’s name.
  • Using stolen personal details to commit other crimes, such as medical fraud or filing for benefits.
  • Social engineering, SIM swap, and synthetic fraud are increasingly sophisticated methods used by identity fraudsters.

References: [1] Cifas  |[2] Cifas  |  Security Brief |  Wikipedia |

Download Identity Victims’ Checklist

PDF Identity theft is when your personal details are stolen and identity fraud is when those details are used to commit fraud. The government has put together a checklist to help on the steps to take to repair your identity and prevent revictimisation. The purpose of the checklist is to provide victims and organisations with consistent helpful messaging and advice on what do when identity theft has occurred and how to prevent it from happening again.

Download victims’ checklist from the Home Office Site : Identity theft victims’ checklist