The identity frauds recorded by the private and public sector members of CIFAS – the UK's Fraud Prevention Service during the first three quarters of 2012 suggest that the Internet is the key enabler.

Among the key findings are that 83% of the 95,060 identity frauds recorded during the first nine months of 2012 were attempted or carried out online. This is up from 71% during the same period in 2011. The percentages of all the other main channels used to commit identity fraud have fallen (with the exception of broker applications which saw a minor increase).

The scale of the problem posed by Internet enabled identity fraud is alarming, but possibly not surprising, as CIFAS’ Richard Hurley explains: “The fact that the Internet has revolutionised our society and the ways in which individuals and businesses conduct themselves is hardly news. The convenience and speed that it can offer – when compared with previous business models or ways of conducting transactions – is one of the Internet’s prime benefits. It is easy to forget, however, that the convenience it offers genuine customers is also provided to those less scrupulous. Fraudsters and criminals mimic consumer behaviour, so as more of our transactions take place online, so will more of the fraud. This is a warning, therefore, to consumers and organisations that changing their own practices and behaviour is one way in which they can avoid falling victim to fraudsters.”

Such figures also underline the need to be increasingly Internet savvy and careful with our details. As more genuine business and fraud takes place online, it is reasonable to assume that it is the same channel that is providing fraudsters with the information they need to attempt identity fraud (ie. data). “While Internet enabled fraud is increasing, it is worth remembering that fraudsters only conduct these frauds to get hold of goods or services. We all have to consider, therefore, what online transactions or accounts we have that might prove to be most attractive to financial criminals," Hurley notes.

“Initial analysis of fraud figures in 2012 demonstrates that plastic card accounts and mail order goods suppliers are favoured targets for fraudsters. In turn, this challenges customers and organisations either to change the ways in which they conduct business online (and accept the risks that online transactions can clearly pose), or lose the convenience that the Internet offers and introduce lengthier, more stringent verification of all applications and transactions.”

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