Instances of a certain type of fraud have increased by 157 per cent during the first six months of this year, Cifas has stated.

According to the fraud prevention organisation, facility takeover fraud - in which scammers impersonate individuals in order to take over bank accounts - has risen dramatically during the period, something which the group identified as a very worrying trend.

Kate Beddington-Brown, Cifas head of communications, said that while it was difficult to identify the exact cause of the dramatic increase in this type of data theft, people were being targeted by an array of methods such as emails and telephone calls, as well as phishing scams, which attempt to trick consumers into providing personal information by using fake emails and websites. The interception of credit cards to take over accounts and fraudulently order goods was also a popular method of attack.

“We must all be vigilant in the way we respond to requests for information, the attention we pay to our statements and the expected arrival dates of new credit and debit cards,” she commented.

For those unfortunate enough to fall victim to identity theft, there is a likelihood that the loss of funds could impact on their ability to meet payment obligations such as mortgages, credit cards and personal loans.

Other statistics released by the group also show that such spending commitments may have taken an increased toll on people’s finances in recent months. The firm noted that there was also a substantial increase in the number of people who were choosing to submit falsehoods on applications for credit cards, insurance products and loans. When compared to the first half of 2007, this year’s results showed that the number of people including material falsehoods in such documents had increased by 12 per cent. Furthermore, the group indicated that these fraudsters are becoming more astute in the lies that are told. The assertion was made after data showed a 47 per cent increase in the ratio of successful and unsuccessful untruthful loan, credit card and insurance applications.

As such, the group indicated that the fraud departments at many loan and credit card providers may be coming under increasing strain.

Peter Hurst, Cifas chief executive, commented: “Those who think that lying on application forms will give them any advantage need to realise that their efforts are counterproductive. Fraud data sharing and the linking of individuals’ address histories by credit reference agencies means that such lies are identified, applications are turned down and the details recorded. Telling the truth, even if it is slightly less palatable, remains the best policy.”

For those who have been unable to secure credit due to an unfavourable debt and repayment record, applying for a bad credit loan may prove an attractive option. In applying for this type of loan, people may find they are able to manage their finances more securely and avoid damaging their credit history further by failing to meet repayment commitments. Another attractive course of action open to consumers is to seek advice from an accredited expert. In an effort to provide support for the growing number of struggling Britons, the Financial Services Authority has recently announced the launch of its Financial Capability Action Plan, which provides free assistance to consumers.

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