Experian ID Fraud Tracker exposes huge rise in savings scams

Experian ID Fraud Tracker exposes huge rise in savings scams

Experian is warning consumers to be more vigilant than ever with their personal data over the festive season, as savings account fraud has rocketed to twice the rate it was two years ago.

The number of fraudulent applications for financial products, such as credit cards and current accounts, has risen 50% in the same period, as fraudsters have become increasingly savvy at using stolen information.

Experian’s latest quarterly ID Fraud Tracker also shows that between July and September this year 57 in 10,000 savings account applications were reported as fraudulent – the highest it has ever been.

In addition, fraudsters are using saving accounts as a Trojan horse into banks, moving on to credit products as they are cross-sold. The accounts could also be used for money laundering, the company insists.

While savings topped the charts for the highest increase in fraud rate, credit card applications were close behind, increasing by nearly 35% in the past two years.

Nick Mothershaw, fraud expert from Experian, commented: “Forewarned is forearmed when it comes to protecting your identity, so we’re hoping these figures will be a wakeup call for people to be extra watchful of potential fraudulent activity. With fraudsters using savings accounts as a route in to access other financial products, they could become a safe haven for ID thieves. We’re urging people to think twice before sharing any personal information, keep a close eye on their accounts and to take a more active role in keeping their identities safe.”