Insurance fraud has increased by seven per cent over the last 12 months, according to new research.
Global information services firm Experian published figures yesterday (April 9th) that show insurance fraud rates reached 12 in every 10,000 applications and claims in 2012. This is six times the rate in 2006, when just 1.85 per 1,000 applications were fraudulent.
It also revealed the vast majority (86 per cent) of insurance fraud was first-party led, with younger, low-income workers living in tightly packed urban communities making up 22 per cent of these cases.
Nick Mothershaw, UK and Ireland director of identity and fraud at Experian, said it is vital that banks, online retailers and authorities within the financial services sector maintain their vigilance and accurately assess the likelihood of fraud.
“Fraud prevention and detection tools which allow organisations to detect, monitor and assess risk will help firms identify anomalies within applications and check for signs of adverse credit history,” he continued.
Credit card fraud was also found to be on the rise, with 15 in every 10,000 applications last year deemed to be fraudulent.