Urgent Surge: Identity Fraud in Insurance Jumps 211% Since 2017

UPDATE: New research reveals a staggering 211% surge in identity fraud within the insurance industry since 2017, marking it as the fastest-growing sector for fraud. The report, conducted by global identity and fraud intelligence leader GBG, underscores an urgent shift in criminal tactics, with insurance fraud cases skyrocketing from 4,215 in 2017 to 13,108 in 2024.

This alarming trend comes as plastic card fraud continues to dominate overall cases, accounting for 39.25% of all identity fraud incidents reported in 2024. The communications sector also witnessed a significant rise, with fraud cases increasing by 114.77% since 2017, now constituting 15.20% of total cases.

The analysis highlights a dramatic evolution in how fraudsters target victims, emphasizing the need for immediate action from both consumers and industry leaders. The report relies on data from Cifas, detailing identity fraud case counts across various sectors and showcasing a clear trend toward more sophisticated fraud schemes.

In the past year alone, the communications sector experienced a 72.72% increase in fraud cases, reinforcing its position as a primary target for criminals. Meanwhile, online retail fraud faced a surprising 25.41% drop in cases, marking a significant deviation from its long-term upward trajectory.

Key statistics reveal the following shifts in identity fraud cases from 2017 to 2024:
– **Insurance Fraud:** Jumped from 4,215 to 13,108 (211%)
– **Communications Fraud:** Increased from 16,973 to 36,453 (114.77%)
– **Plastic Card Fraud:** Rose from 58,788 to 94,111 (60.09%)

Despite the overall growth in fraud cases, some sectors saw declines. Mortgage fraud cases fell by 33.33%, dropping from 45 to 30, suggesting improvements in security measures within that area.

As these figures indicate, the landscape of identity fraud is shifting rapidly, posing serious implications for consumers and businesses alike. The insurance sector’s rise in fraud incidents is particularly concerning, as it now comprises 5.47% of all identity fraud cases, up from just 2.42% in 2017.

With fraud tactics evolving, experts advise consumers to stay vigilant and implement stronger security measures to protect personal information. The time to act is now, as these developments signal a pressing need for heightened awareness and prevention strategies across all sectors.

As the situation continues to develop, stakeholders are urged to monitor trends closely and adapt to the changing landscape of identity fraud. The implications for businesses, consumers, and the economy are profound, highlighting the urgent need for collective action to combat this escalating threat.