Fraud Hits Record Level In 2011 – Fraud Rises 9% In 2011 Compared To 2010 But False Insurance Claims FallThe UK’s Economic Problems Have Contributed To Record Levels Of Fraud, According To The UK’s Fraud Prevention Service.

CIFAS, a not-for-profit membership association dedicated to fraud prevention, recored over 236,500 cases of frauds during 2011– the highest number ever recorded. That was a 9% rise on 2010.

ID fraud and facility takeover fraud, where a trickster takes over a person’s mobile phone, bank account and credit card, were two types of fraud on the rise.

However, the good news for insurers, who took a tough approach to fraud last year, is that the number of false insurance claims fell 26.3% in 2011 compared to 2010. Cases fell to 396 from 537.

Research by Insurance Times has shown that 70% of industry respondents believe insurance fraud increased last year.

For example, Allianz Insurance recorded a rise in household fraud last year and predicts it will get worse.

“Last year we detected an increase in household insurance fraud, now at 24%,” said fraud manager Mihir Pandya.

“Within an environment of rising costs and unemployment this is a trend that we only feel will get worse before it gets better.”