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Inaccurate Info in Current Accounts

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Applications For Current Accounts Have More Fibs Than Previous Three Years As people Hit Hard Times.

In the last three years fraud has reached its highest now, with more and more people lying about there financial situation, in order to open current accounts or secure overdrafts.

In the first quarter this year, a study done by Experian found that 44 in every 10,000 current account applications were fraudulent. In comparison to the last three months of last year this is a 23per cent increase.

Often people involved in current account fraud are 'financially stressed' they see nothing wrong with exaggerating or not revealing aspects of their financial circumstances, such as not mentioning bad credit histories.

Payment abuse accounts for around four out of ten frauds, this is when people try to make payments from accounts when they know very well the funds are not available to make the payments.

Since its highest point in late 2009, attempted insurance fraud has increased thirty seven per cent quarter on quarter with thirteen in every ten thousand applications and claims being detected as fraudulent.

Credit card fraud has also been on the increase it is now fourteen in every ten thousand applications in comparison to ten. Over the same period identify fraud has been on the increase, to eight in every ten thousand jumping from five.

UK director of identity and fraud services at Experian, Nick Mothershaw said: 'Credit cards have seen a resurgence in identity fraud, while a growing number of financially stressed individuals consider misrepresenting their personal or payment information when applying for insurance, contributing to a significant fraud upswing in the first quarter of 2012.'

Experian's records began in spring 2009 and since the records began misrepresentation of people's financial circumstances is at its highest. Financial services fraud rates had jumped sixteen per cent since the previous quarter and the main reason behind this is the misrepresentation of people's finances.

Although credit card and current accounts applications are on the increase, the number of fraudulent loan applications was at the lowest point recorded by Experian. The number had dropped by thirty eight per cent on the previous quarter.

There was also a drop in attempted mortgage fraud and savings account fraud in comparison to the previous quarter.

This information is based on information from fraud prevention systems National Hunter and Insurance Hunter, Experian manages this on behalf of its clients.



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