UK asset finance fraud surges 61% as criminals shift tactics

Rising Threats in UK Asset Finance Fraud

Identity fraud within the asset finance sector in the United Kingdom has experienced a significant increase, with a surge of over 60% since 2017. This alarming trend has been highlighted by GBG, a global provider of identity and fraud intelligence solutions. Although the asset finance sector is smaller in volume compared to banking and insurance, its rapid growth in fraud cases raises concerns among lenders and lessors.

Between 2017 and 2024, the number of identity fraud cases in the asset finance sector rose from 970 to 1,560, representing a 60.82% increase. This makes it the third-fastest growing sector for identity fraud over the seven-year period. While it accounted for only 0.65% of total fraud cases in 2024, the upward trajectory suggests that fraudsters are increasingly targeting niche finance segments that may be more susceptible to synthetic identities or weak digital onboarding processes.

Gus Tomlinson, Managing Director at GBG, emphasized that criminals are diversifying their strategies. “While plastic cards and bank accounts remain the biggest targets, we're seeing significant upticks in sectors like asset finance, insurance, and communications — areas that haven't traditionally been the focus,” he stated.

Broader Trends in Identity Fraud

The GBG analysis, which examined identity fraud trends across nine sectors between 2017 and 2024, revealed some startling figures. Insurance fraud saw the most dramatic rise, increasing by 211% with cases jumping from 4,215 to 13,108. The communications sector followed closely, with an 114.77% increase in fraud cases during the same period.

Plastic card fraud remains the most common form of identity fraud, with over 94,000 cases reported in 2024. This represents a 60% increase from 2017 and now constitutes nearly 40% of all fraud cases. Bank account fraud, while growing at a slower rate of 12.42%, still accounts for more than 24% of all fraud cases.

In contrast, more traditional finance areas have seen declines. Mortgage fraud dropped by 33.33%, and loan fraud fell by 22.16%. These decreases may indicate improvements in fraud detection or a shift in criminal preferences toward sectors with faster access to funds or less stringent verification processes.

Volatility in Recent Trends

Interestingly, asset finance fraud recorded a dramatic year-on-year drop of 80.09% between 2023 and 2024. This could suggest that fraud prevention measures have been strengthened or that criminals have redirected their attention elsewhere. In contrast, the communications sector experienced a 72.72% surge in the same period, highlighting its growing vulnerability in the digital age.

Methodology and Data Insights

GBG’s analysis is based on identity fraud case data collected from 2017 to 2024 across multiple sectors, including the Cifas Fraudscape. The study tracks changes in fraud volume, percentage share, and sector rankings, providing insights into both long-term trends and short-term year-on-year shifts. The data encompasses over 239,000 identity fraud cases recorded in 2024, up from approximately 174,500 in 2017.

As the landscape of identity fraud continues to evolve, it is clear that sectors such as asset finance, insurance, and communications are becoming prime targets for criminals. With the increasing use of digital platforms and the rise of synthetic identities, financial institutions must remain vigilant and adapt their fraud prevention strategies accordingly.