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Impersonation and sophisticated new scams remain a serious threat to the public, according to a report published by the UK Fraud Prevention Service today.

While overall fraud figures are down, CIFAS warns identity fraud is still prevalent and many cases go undetected. So what are the fraudsters up to now?

The CIFAS analysis of fraud trends during 2010 reveals a 7% reduction in the overall level of fraud, when compared with the previous year. However, further key findings reveal a more worrying reality and CIFAS Head of Communications, Kate Beddington-Brown, warns there may be worse to come: "While any decrease in the level of confirmed fraud is good news, how much other fraud is being attempted remains far from clear.

"Fraud levels rose during the recession and - as the UK continues to edge its way out of it - fraud appears to have gone down. It is far too early, however, to know the true extent of fraud as further economic challenges are yet to emerge and are sure to have an impact."

Identity fraud
Figures reveal that identity fraud shows no sign of falling with over 102,500 reported cases identified in 2010, while a 4.73% rise in the number of victims of impersonation to over 89,000, demonstrates that fraudsters are increasingly targeting real people rather than using 'fake' identities. The rise may seem relatively small, yet it follows a 32% hike in 2009 and identity frauds comprised nearly 50% of all frauds recorded by CIFAS Members last year.

Facility takeover, also known as account takeover, fraud fell by 5.5% from 2009 yet CIFAS highlights that this masks the phenomenal increase of 250% since 2007. Beddington-Brown explains: "Whether it is organised criminals obtaining people's account numbers through online criminal forums, or unauthorised use of someone's bank card over the telephone, account takeover fraud is clearly not a passing trend. These figures show that account takeover is most definitely now a favoured method of obtaining funds fraudulently."

Serious questions
The overall fall in fraud also raises some serious questions about how much fraud is not being spotted, which could stem from stricter lending criteria and fraudulent applications being rejected before fraud checks take place. There are also concerns that organised criminal gangs, known for exploiting new opportunities, could be working on new techniques to catch consumers out.

Peter Hurst, CIFAS Chief Executive, comments: "Fraudsters adapt their methods in response to changes in the economy, and technology - finding and exploiting any area of weakness that they can. As a result, these 2010 fraud figures must not be viewed in isolation. Any reduction in levels of fraud is good - but how much more remains concealed, only to be revealed during further changes in our economic climate, can only be estimated.

It is also feared that the reduction could be short-lived, and as spending cuts, tax increases and unemployment levels all take their toll a second wave of fraud could soon be unleashed.