Current account fraud at new high

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Around four in 10 current account frauds involved payment abuse, a study suggests // Around four in 10 current account frauds involved payment abuse, a study suggests
Around four in 10 current account frauds involved payment abuse, a study suggests
Current account fraud has reached its highest level in at least three years, mainly due to people lying about the state of their finances, a study has suggested.
A rate of 44 in every 10,000 current account applications were found to be fraudulent in the first quarter of this year, a 23% rise on the last three months of 2011, Experian said.
The rate is the highest since Experian's records began in spring 2009 and was the biggest driver behind a 16% jump in financial services fraud rates generally compared with the previous quarter.
Nineteen in every 10,000 applications for financial services generally were found to be fraudulent in the first three months of this year.
The study found that current account fraud often involved "financially stressed" people exaggerating or hiding aspects of their personal circumstances, such as not revealing bad credit histories when trying to open an account or apply for an overdraft.
Around four in 10 current account frauds involved payment abuse, including people trying to make payments from accounts when they knew they did not have enough money to cover the costs.
Attempted insurance fraud increased by 37% quarter-on-quarter to reach its highest point since late 2009, with 13 in every 10,000 applications and claims detected as fraudulent.
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