Identity Threat, the Major Villain in Country’s Financial Frauds
A report by the data and analytical tools service provider Experian said that identity theft or fictitious identity cases contribute to around three-fourths of all detected fraud cases related to financial products in India.
“Amongst various financial products, auto loans, mortgage loans and credit cards have seen the largest number of fraud cases from identity theft, represented by 85% of the total detected frauds in the first quarter of 2015,” in a report based on the trends in fraud cases that occurred between Q1-2014 to Q1-2015.
Mohan Jayaraman, Managing Director, Experian Credit Information Company of India and country manager, Experian India said, “With the rise of social media and information shared in the public, identity fraud continues to be a threat to the industry. Individuals need to be alert on the information they share publicly as well as be alert to phishing emails and calls soliciting personal details.”
According to the report, frauds due to applicants submitting fraudulent contact information has risen by 3%, contributing to 18% of all detected frauds. Amongst all financial products, consumer loans continue to record the highest fraud incidence rates, followed by credit cards.
Mortgage category witnessed a 50% increase in fraud incidence rate in the period. “Falsification of address proof is the most popular behaviour seen amongst fraudsters, and hiding of adverse credit is the most common behaviour especially in the automotive loan category, followed by mortgage fraud,” the report noted.