Identity theft accounts for 33% of fraud cases – TSB

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Identity theft fraud has accounted for 33% of fraud cases so far this year, according to a TSB study.

The TSB classifies impersonation fraud as an attack in which a criminal impersonates a company, business, organization, or individual as a key part of the scam.

The category accounted for more than half (52%) of TSB clients’ transactions with fraudsters by value in 2021.

New industry figures highlight the pervasive threat of fraud – with over £2bn of cases reported to Action Fraud in less than a year.

Identity theft fraud is a key driver of these losses, as cases have increased by more than 300% since 2019, he claims.

The average case in the industry records a loss of nearly £4,000 as consumers are bombarded with scam calls, texts and emails every day.

Bank impersonation fraud is rampant across the industry – accounting for 24% of all fraud losses in UK Finance’s latest fraud data, as all banks face identity theft identify.

At TSB, this represents 21% of all losses. TSB is one of 12 banks to join the 159 service to provide customers with a way to hang up and verify the legitimacy of a call via this phone number.

The TSB is also cautioned against friends and family fraud, which has had the second highest number of cases, overall. This results in over £1,200 in losses per case, many of which are cost-of-living related, as fraudsters send emotional text messages or email requests for financial aid, while pretending to be a relative or a friend.

Further figures released today show £6.7bn of cases have been reported to Action Fraud since April 2019.

Under the Fraud Reimbursement Guarantee, TSB fraud losses are almost one-fifth (19%) lower than the industry average.

Paul Davis, Director of Fraud Prevention at TSB, said: “Households are bombarded with fraudulent calls, texts and emails every day – we urge them to remain suspicious of everything unsolicited contact, to avoid becoming victims of fraud at a time when the impact would be felt the hardest.

“We continue to be the only bank to protect customers against losses due to fraud, through our Fraud Money Back Guarantee, which is as important today as it ever has been for the life of our clients.”

Phil Andrew, Managing Director of StepChange, said: “In difficult times, fraud and financial hardship go hand in hand. The pandemic has left many households with little or no ability to weather financial shocks and, as the rising cost of living begins to take its toll, its vital consumers are protected from those seeking to exploit vulnerabilities. financial and others.

“People who have lost money to fraudsters need fast and efficient help and support, so it is especially welcome to see reimbursement assistance offered to victims of fraud.”

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