Cifas, the UK’s foremost fraud prevention service, has highlighted a concerning increase in SIM swap fraud, with cases soaring by 1,055% in 2024. This surge was part of the annual Fraudscape report, which cast a shadow over the mobile and telecoms industry.
In 2024, the National Fraud Database (NFD) recorded nearly 3,000 cases of unauthorized SIM swaps. Criminals use this method to hijack a victim’s phone number by transferring it to a new SIM without consent. This enables them to intercept calls and messages, including crucial two-factor authentication codes. Consequently, they can engage in further fraudulent activities, such as taking over app accounts and committing identity theft.
The Fraudscape report detailed a staggering 421,000-plus cases filed to the NFD in 2024. Being the UK’s largest fraud database, it reveals the telecom sector as a major target. Identity fraud linked to mobile products surged 87%, resulting in over 16,000 new cases.
Moreover, facility takeover fraud, where criminals seize control of individual accounts, rose by 76%. The most affected sectors were telecoms and online retail. Nearly half of all account takeover cases involved mobile phone accounts, and unauthorized mobile upgrades spiked by 96%.
Elderly consumers find themselves targeted, with those aged 61 and over constituting 29% of account takeover cases. In this demographic, fraud filings increased by 90% year-on-year.
Simon Miller, Director of Policy, Strategy, and Communications at Cifas, stated: “Our latest figures underscore the urgent need for collaboration and the sharing of data and intelligence across sectors to tackle fraud. In the mobile and telecoms sector, criminals are exploiting vulnerabilities in the system to assume control of people’s mobile identities – with devastating consequences.”
The organization underscores the importance of enabling its diverse members, spanning telecoms, banking, retail, and insurance, to share vital information. This collaboration helped prevent £2.1 billion in losses last year.
To combat these trends, Cifas advises consumers to monitor mobile accounts for unexpected changes and alerts related to security PINs or passwords from their telecom providers. Additionally, businesses should strengthen identity verification measures and continue sharing threat intelligence. This cross-industry cooperation is vital to staying one step ahead of fraudsters.