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Digital Fraud at a low in the South West in 2021

Feyaza Khan
Authored by Feyaza Khan
Posted: Monday, August 9, 2021 - 11:19

The South West has one of the lowest instances of digital wallet fraud, as phone and online payments skyrocket in the UK.

Fourthline, which is a digital identity and verification specialist, has released findings from its Digital Identity Fraud Analysis Tool.

It looked specifically at the different ways fraudsters have attempted to create mobile wallet accounts in the UK between January and June this year. 

It found that due to the reliance and shift to online storage, there are more opportunities for fraudsters to use counterfeit or tampered ID to create illegal digital wallet accounts. 

As the real identity behind these fraudulent accounts is unknown, the accounts can be used to launder money; for bribery purposes, wider scams and tax evasion; as well as making purchases and transferring money.

The study also found that driving licenses made up more than 55% of all fraud attempts, followed by passports and non-UK national ID cards.

It also revealed London is a hotspot for counterfeit ID with 34% of the crimes recorded there, followed by Yorkshire and Humber. The areas with the lowest instances of fraudulent digital activity were in the South West (less than 2%) and North-East (less than 1%). 

According to UK Finance, nearly 40 percent of 25-34-year-olds and close to 30 percent of 16-24-year-olds are registered to use mobile wallets. 

Co-Founder of Fourthline, Krik Grunning, has called on digital wallet users to be more vigilant, saying: “The shift to storing our identity in digital wallets brings greater convenience and control of our sensitive personal data. Yet fraudsters are pushing to exploit the freedoms digital wallets provide. Compliance at account sign up is crucial to pinpointing digital wallet fraud and preventing fraudulent account openings.”


 

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