Identity theft: Fraud cases in auto, mortgage loans and credit cards segment rise
Frauds due to applicants submitting fraudulent contact information has risen by 3% contributing to 18% of all detected frauds
Although there has been a marked decrease in number of repeated fraud cases, identity theft or fictitious identity continues to be a threat to the Indian industry. According to a Fraud Report 2016 launched by Experian India, identity fraud in India accounted for 77 percent of the fraud cases in the first quarter of 2015.
The provider of application fraud detection services using National Hunter in its report showcased the fraud trends in the country's banking and financial services industry. The report said of the various financial products, auto loans, mortgage loans and credit cards witnessed the largest number of fraud cases from identity theft representing 85 percent of the total detected frauds in Q1 2015.
“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, said Mohan Jayaraman, managing director, Experian Credit Information Company of India and country manager, Experian India.
"Fraudsters are well-connected, highly skilled and endlessly resourced individuals. There are several components of fraud – accessing data (hacking), creating fake documentation (identify theft), account takeover (purchasing goods illegally) and distribution (sale of goods or data on the black market), hence, it is important for us to think of fraud as an industry," added Jayaraman.
The report further states that frauds due to applicants submitting fraudulent contact information has risen by 3 percent contributing to 18 percent of all detected frauds.
Amongst, all financial products, consumer loans continue to record the highest fraud incidence rates followed by credit cards. The mortgage portfolio has observed a 50 percent increase in the fraud incidence rate, said the report.
The Experian report also highlights that falsification of address proof is the most popular behavior seen amongst fraudsters, and hiding of adverse credit is the most common behavior especially in the automotive loan category followed by mortgage fraud.
In case of mortgage loans, it has been seen that fraudsters also have used false employment status to avail the loan.
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