New research conducted by the UK’s leading fraud prevention service has discovered that an increasing number of online shoppers are committing fraud against retailers. Cifas said that the rise in online shopping in recent years has resulted in a significant and growing level of non-delivery fraud.
This type of fraud occurs when a shopper places an order, receives the goods and then fraudulently claims to not have received the delivery in order to claim a refund. A recent survey by Cifas, suggests that one in five people (20%) admitted that they or someone they knew had committed non-delivery fraud over the last 12 months - up from 18 per cent in the previous year.
The largest proportion (36%) of these people were aged between 25-34, followed by 16-24-year-olds at 33 per cent. Some 18 per cent of those surveyed didn’t believe it was illegal to falsely claim the non-delivery of a purchase.
Cifas said that during the ongoing cost of living crisis, it has seen a rise in people committing fraud to not only claim refunds, but to also obtain financial products such as mortgages and bank loans.
People who make false statements around their level of income often support these claims with fake bank statements and HM Revenue and Customs (HMRC) tax returns.
Between January and September 2022, nearly 18,000 records of false applications were filed to the Cifas National Fraud Database - up nearly half (45%) when compared to the same period in 2021.
The largest proportion of these impacted the banking sector, but there were also marked increases in attacks on the asset finance, loan and mortgage sectors.
Fraud costs the UK economy billions of pounds every year, and individuals found guilty of committing fraud and prosecuted face penalties, including a potential prison sentence.
Commenting on the findings, Mike Haley, CEO of Cifas, said: “We know that many people are struggling with the rise in the cost of living, but however tempting, fraud is never a solution. Anyone found to have committed fraud faces serious consequences which may impact their financial and employment futures, and in some instances result in a prison sentence.
“However harmless it may seem, carrying out fraud is too big a risk to take with your future.”
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