 "Identity theft tops list of frauds, says Experian")
Identity theft is the main reason for fraudulent transactions in the financial sector, says a report launched by Experian India.
“In India, identity theft accounts for 77 per cent of the fraud cases in Q1 2015. Among various financial products, auto loans, mortgage loans and credit cards have seen the largest number of fraud cases,” added the report.
Mohan Jayaraman, Managing Director, Experian Credit Information Company of India, and Country Manager, Experian India, said among all financial products, consumer good loans continued to see the most frauds, followed by credit cards. “Consumer good loans have the highest number of frauds, as for most of these loans the processing is done over-the-counter as compared to, say, mortgage loans where financial institutions take up to 2-3 days or even more.”
The report was based on trends in frauds between the first quarter of 2014 and of 2015.
However, even mortgage portfolio had seen a 50 per cent increase in fraud incidences.
The report also said falsification of address proof was the most popular method among fraudsters, and hiding of adverse credit was the most common behaviour in the automotive loan category.
“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. Fraudsters are well-connected, highly skilled and endlessly resourced individuals,” added Jayaraman.
