Fraud complaints to the Financial Ombudsman Service (FOS) soared during the Covid-19 pandemic, reaching levels 44% higher in 2020 compared to 2019.
This finding comes from a Freedom of Information request by ID-Pal.
The number of fraud complaints decreased in 2021, but it is still 18% higher than the pre-pandemic levels in 2019.
ID-Pal stated that the number of complaints is back on the rise. It stated that if the pace of fraud complaints continues at its current pace, there will be a 10% rise in complaints compared to 2021.
The company added that as the cost-of-living crisis takes hold, fraud rates are expected to rise again throughout this quarter and into 2023.
Identity fraud occurs when personal details are stolen and used to commit fraud. Through identity fraud, criminals can open or take over existing bank accounts, apply for and obtain credit cards, loans and state benefits, place orders, take out mobile contracts, and apply for and obtain genuine identity documents, such as passports.
ID-Pal CEO and founder Colum Lyons said, “Fraudsters thrive on instability, so as the cost-of-living crisis grows, it follows that fraud will also increase. Therefore, it is critical that financial institutions protect their organisation, team and customers from fraud of any type without adding friction to their services in doing so.”
Lyons said, “The results also show that identity fraud cases have reduced since the pandemic, proving the dial can be moved in the right direction. Newer generations of fraud prevention technology exist that are adaptable and customisable, like ID-Pal, so the excuse that the solution to prevent fraud can’t be integrated into an organisation easily is no longer acceptable.”
Earlier in the year, ID-Pal teamed up with payment solution provider Lerex Technology. Through the deal, ID-Pal has supplied its identity verification, e-verification and AML tools to Lerex.
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