Credit Application Fraud

Credit Application Fraud

Credit application fraud on the rise in Australia.

A compilation of recorded and acknowledged fraud events throughout Australia during the years 2012 and 2013 has shown an increase of credit application fraud by 27%.

This data comes from Veda, Australia’s largest credit reporting agency who has access to several forms of confirmed credit application fraud data.

There are four sections of credit application fraud which are  1) false personal details,  2) fabrication of identity,  3) identity takeover and 4) undisclosed debts.

Of these four areas identity takeover grew the most with an staggering increase of 103% from 2012 through to 2013.

Veda believes that ABS figures show that this fraudulent activity costs Australian businesses around 1.4 billion per year.

Naturally this cost is not going to be absorbed by all businesses, especially banks, and will be factored into the end cost of products and services to consumers. So in the end we all pay as consumers for the actions of credit application fraud.

It is claimed that part of the explanation of this growth in credit application fraud is the growth in technology and how criminal minds are using as much to their advantage. Criminal activity must be savvy to survive and will adopt any new tools of trade it can acquire for their devious purposes.

Just to put things in perspective, back in 2007 identity take over accounted for around one quarter of all identity fraud in Australia. Now in 2013 it accounted for around 90% of all identity fraud! Yes technology has come along way and unfortunately dragged bad elements along with it.

Naturally financial institutions need to increase their security measures within technology in order to limit growing number of credit application fraud incidents. It is essential if the channels used by criminals are to be tightened up and staying on top of fraudulent behaviour and tactics.

If you believe you are ever the victim of credit application fraud, immediately contact any lenders or credit providers whom you are subscribed to and advise them. Next thing is to have your Veda file assessed to check for unauthorised activity. This can be assessed within one hour on our site by clicking here. You’ll then want to seek legal advice or contact the police.

 

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