2 Million Brits Become Victims Of Financial Identity Fraud

According to FICO’s new Fraud, Identity, and Digital Banking Report, thieves and fraudsters stole and used nearly two million Brits to open financial accounts in 2023. The firm discovered that around 4.3% of the respondents, roughly 1.9 million in the UK, had become victims of identity theft.

This decreased compared to the 7.7% of respondents stating that they had fallen victim to identity theft in 2022. On the other hand, 5.4% of respondents indicated that their identity may have been used to open a financial account. 

Sarah Rutherford, the senior director of Fraud Marketing at FICO, has noted that the number of people who’ve been victims of identity fraud could be even higher. She stated:

“It’s also important to note that our data merely indicates those who ‘know’ their stolen identity has been used for financial fraud. Most people don’t find out immediately about fraud in their name – if ever.

“And, of course, a fraudster is unlikely to only use a stolen identity once, so the value of the fraud will be considerable too,”

FICO’s research noted that 30% of UK citizens worried about this type of crime, followed by credit cards getting stolen and used at 24% and their bank accounts being taken over by a fraudster at 20%.

Consumers Need Fraud Protection

According to FICO’s research, strong fraud protection measures can offer various commercial benefits to organizations. 34% of the respondents ranked good fraud protection as their top factor when choosing a financial provider. In comparison, 73% of respondents ranked it as one of their top three considerations.

Biometrics was also chosen as the most desired authentication choice, with 87% of the respondents saying it can help provide excellent security. Fingerprint scanning was voted the best authentication method, with 38% of respondents preferring that, compared with 34% choosing face scans and 25% choosing iris scans. Only 17% believed that usernames and passwords can provide the best protection.