First party fraudsters the main offenders
Attempted insurance fraud decreased by 16% between April and June 2012, the latest research by data services provider Experian has revealed.
Ten out of every 10,000 applications for insurance products were fraudulent during that period compared to 12 out of 10,000 over the same period in 2011.
Experian’s latest fraud index revealed that main offenders were first-party fraudsters, who accounted for 86% of all attempted fraud.
Overall, there was a 3% year-on-year decline in attempted fraud across all financial services products.
Automotive finance and insurance providers experienced the biggest falls, while the mortgage industry suffered a 23% jump in fraud in the second quarter of 2012 and savings accounts were up 109%.
Experian UK and Ireland director of identity and fraud services Nick Mothershaw said: “Robust fraud prevention relies on thorough and efficient validation of customers’ identities and the information presented on the application form.
“It is vital that finance providers share comprehensive and timely information about finance applications and known frauds to help combat this common threat to the industry.”
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