An analysis of trends during 2007 by CIFAS – the UK’s Fraud Prevention Service – has revealed an escalation in most variants of fraud. No less than 77,593 cases of identity fraud – including instances of false identity and identity theft – were reported during this period. Pretty frightening statistics, then.
The threats posed by fraud are diverse and increasingly complex. CIFAS chief executive Peter Hurst comments: “The rise in fraud should be of concern to us all. It’s widely accepted that the proceeds of fraud fund both low-level and serious crime. On the one hand, fraud is known to be funding terrorist activities, prostitution and the importation of drugs. On the other, it supports the purchase of those drugs, fuelling anti-social behaviour and causing road deaths. For its part, prostitution changes the character of local communities.”
Psychological and material impact
Hurst continues: “The impact on those affected should not be underestimated. Although innocent victims of identity crime are not required to foot the bill for a genuine fraud, the psychological damage can be severe and long-lasting.” However, Hurst points out that in the case of investment scams and ‘boiler room’ frauds, victims can lose everything.
The CIFAS figures reveal a sharp increase in facility takeovers. Also known as account takeovers, these crimes occur when the fraudster impersonates a victim in order to assume control of one or more of their bank or savings accounts. The number of cases of facility takeover filed by CIFAS members during the first quarter of 2008 has risen by an astonishing 146% when compared with the same period in 2007.
CIFAS feels that the increase could be due, at least in part, to the burgeoning sophistication of online ‘phishing’ – the use of spoof e-mails and web sites designed to deceive recipients into divulging personal financial data such as credit card numbers, bank account numbers, user names and passwords – to facilitate the takeover. Phishing e-mails are becoming increasingly targeted and more cleverly worded, and CIFAS stresses that everyone should be on their guard.
“With some awareness of how lending decisions are made,” adds Hurst, “fraudsters are ‘tailoring’ their applications in an effort to beat the system. Following the economic downturn, with lenders using stricter lending criteria, fraudsters may be realising that large-scale fraud is no longer an option so they are cutting their cloth accordingly.”
Police target equipment supply
Until recently, identity fraudsters had easy access to ID card printing solutions that would allow for easy replication of identification documents. Now, though, the Metropolitan Police Service has launched an initiative to combat identification card crime.
Dubbed ‘Project Genesius’, its main objective is to form a close working relationship between law enforcement and the printing industry focused on targeting the supply of equipment that could be used for the manufacturing of false identities.
Project Genesius is a key part of ‘Operation Maxim’, a London-wide programme involving a dedicated team of police and immigration officers and staff from the Identity and Passport Service (IPS) and the Crown Prosecution Service (CPS), working together on proactive, intelligence-led operations targeting people involved in organised immigration crime, human trafficking and document abuse.
Ongoing liaison with the printing equipment industry is designed to prevent specialist machinery from falling into the hands of criminals who make false identity documents.
A very serious matter
The illicit use of such equipment is a serious matter. Detective inspector Nick Downing, the head of Project Genesius, states: “We really must make it as difficult as possible for organised criminals to obtain the equipment they need, otherwise we are undermining both the industry’s reputation and the security of the United Kingdom.”
Operation Maxim obtained convictions for a wide range of immigration-related offences during 2006-2007, trapping a man for a visa scam whereby many people entered the UK on false documentation, exposing sham marriages (where young women who thought they were going to be models ended up as part of a criminal operation) and disrupting a number of illegal passport factories in London.
Fighting fraud together
The Metropolitan Police Service initiative is being supported actively and enthusiastically by Blazepoint. By sharing relevant intelligence and identifying Best Practice in new customer profiling, we hope to play our part in minimising economic fraud gained through the abuse of printing equipment.
Suppliers of plastic ID card printers and consumables must use the latest profiling and data matching techniques to identify fraudsters before equipment is supplied. Simple credit referencing isn’t sufficient.
Equipment suppliers must be vigilant, use enhanced profiling practices and act upon any suspicions over the legitimacy of an enquiry.
