Businesses warned to protect data as fraud rockets

Businesses are being urged to "recognise the threat' of fraud after a 9% jump in reported cases last year.

More than 236,500 frauds were identified by Cifas, the UK fraud prevention service, in 2011, an increase of 9% on the previous year and the highest number of frauds ever identified by the organisation's members.

Identity fraud accounted for 113,000 of last year's incidents, up 10% from 2010's levels.

Facility takeover fraud, where the perpetrator uses a victim's credit card, bank account or mobile phone, has increased by 300% in the last five years, Cifas said.

"All organisations must recognise this threat, and review how they try to prevent such frauds," said CIFAS communications manager, Richard Hurley.

"This could be by reviewing their security procedures and increasing identification requirements when dealing with applications, or by ensuring that individuals regularly change passwords and PIN numbers.

"It is time for every one of us to start treating data in the same way that we would guard a prized possession."