London leads rise in credit card fraud as banks turn taps back on

Tim Wallace
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LONDON and the commuter belt have led a sharp rise in fraudulent credit card applications as banks make the plastic more freely available, data firm Experian reported today.

False applications dropped in the credit crunch as lenders became reluctant to issue new cards and cut credit limits.

But now the credit taps are back on, fraudulent applications have almost doubled.

In the first half of this year, 25.15 in every 10,000 credit card applications were false, up from 14.05 a year earlier and 11.41 in the first half of 2011.

“Identity theft mostly happens in and around London, in flats of multiple occupancy where fraudsters have easy access to the post,” Experian’s Nick Mothershaw told City A.M.

“And now credit limits are rising for those with high net worth, ID theft is moving back to the leafy suburbs and London’s commuter belt where fraudsters see higher rewards.”

False car loan claims also rose from 17.14 to 21.37 in every 10,000.