Highlights areas most at risk of ID fraud and identifies need for retailers to tighten up verification processes
Highlights areas most at risk of ID fraud and identifies need for retailers to tighten up verification processes
Callcredit Information Group has published research identifying the areas in the UK most at risk of ID fraud, with Sunderland topping the list of 121 localities across the British Isles, according to Callcredit’s geo-demographic fraud product, GeoFraud.
With six of the top ten fraud hotspots located in the North of England, the study shows that retailers in the North in particular need to improve their verification procedures to bring down their risk of exposure to fraudulent practices. Fraud costs the UK £30 billion a year, according to the National Fraud Authority (NFA). And delivery fraud is one of the most common types of fraud faced by retailers, where the delivery is sent to the wrong address or recipients might deny receiving delivery.
London and the North figure heavily
Based on data including known fraud cases, house prices, the electoral roll, unemployment data and geo-demographic data, Callcredit Information Group has assessed the fraud status of these 121 localities that make up the UK. Over half of the top ten cities on the list are based in the North, including Manchester, Wolverhampton, Oldham and Middlesbrough, while East and South East London also figured high on the top ten list, in second and fourth place respectively.
John Cannon, Callcredit head of financial crime product strategy, commented: “The modern retail world in which we do business requires customer interaction to be done faster, more remotely and through ever-increasing technological channels. This diversity presents opportunity for fraudsters to commit theft against retailers while almost detaching themselves completely from the moral aspect of the criminal act. The research highlights the need for retailers to ensure they have adopted sufficient fraud defences, such as verifying customer identity, verifying card payment details, confirming the customer owns the card being used to make payment and checking the delivery address is not a fraud hot spot.”
The research highlighted the severe impact that fraudulent activity is having on both online and high street retailers across the UK. Last conducted in 2008, the study shows that Sunderland, previously ranked as the 15th most ‘at risk’ area, has become significantly more exposed to fraud over the past two years.
