According to the latest data from the Office for National Statistics (ONS) in the Crime Survey for England and Wales (CSEW), consumer and retail fraud has risen by 19%. This means that around 963,000 incidents were reported.
Chad Reimers, the General Manager of Fraud & ID at TransUnion, said that the new figures from the ONS showed no major change in the total number of fraud incidents for the year ending June 2024. However, he pointed out that consumer and retail fraud increased by 19%.
Fraud Reports Highlight Rising Risks And Need For Stronger Controls
Chad said this is in line with what they have seen in their own reports. Reimers mentioned that in their recent State of Omnichannel Fraud Report, they saw risky transactions go up by 33% in the retail sector.
There was also a 10% rise in fraud cases in the communities sector, which includes online marketplaces and dating sites. He added that other reports, like those from UK Finance and Cifas, also showed an increase in fraud cases.
For example, UK Finance reported a 16% rise, while Cifas saw a 15% increase. Reimers said this shows there is still a need for more awareness among consumers and that organizations need to put stronger controls in place to prevent fraud.
He explained that this could be done by using different data signals and technologies to track and monitor fraud.
Fraudsters Target Retail And E-Commerce As Crime Rates Increase
Reimers also shared that the fraud landscape is changing. He said that over the past year, fraudsters have started targeting the retail and e-commerce sectors more. This is happening through things like chargebacks, delivery fraud, and scams involving phone deliveries.
He explained that fraudsters often use these techniques to trick consumers into using mule accounts or becoming victims of push payment scams. Reimers emphasized that businesses need to create customer journeys that are based on data.
This will help them identify possible fraud risks while also building trust with consumers. He said it is important for companies to have a full understanding of customers, including their digital information and the devices they use.
Meghan Elkin from ONS also commented on the increase in crime. She said that crime has risen over the past year, but some of this might be because the previous survey still included times when there were COVID-19 restrictions. She mentioned that it is still too early to know if this is just a short-term change or if it is part of a longer trend.
Elkin noted that while many types of crime stayed the same, there were clear increases in robbery, violence with injury, and consumer and retail fraud. She pointed out that police figures also showed a rise in robberies, and shoplifting has stayed at record levels.