The level of identity fraud prevented in the first three months of the year has soared by 10%, new insights from Experian reveal.
Nearly £130 million of third-party fraud was stopped by financial institutions in Q1 of 2025, up from £118 million compared to the same period in 2024.
Third-party fraud is when someone’s personal information is used without their consent to apply for financial products, such as credit cards and loans, in the victims’ name.
When looking at financial products, there has been a steep rise in the level of prevented current and savings accounts openings. Fraudsters attempt to open these accounts for a variety of reasons including using as a vehicle to house and then move on laundered money, build trust with the provider and then apply for credit products or use the account’s overdraft facility and quickly transfer to another account.
Prevented fraudulent savings account openings rose by 92% and current accounts by 5% in Q1, compared to the same time a year ago.
Today Experian is warning people to make sure they do all they can to secure their personal information to avoid becoming a victim.
John Webb, consumer affairs expert, Experian UK&I, said: “Being a victim of identity fraud isn’t just distressing, it can cause problems when you come to apply for credit. Doing everything you can to protect yourself from fraudsters will put you in the best position.
“In addition, if a company that holds your information is the victim of a cyber-attack, you might be concerned about fraudsters getting hold of your data. If you’re worried then be cautious about emails, phone calls or texts. It’s also a good idea to check your free credit reports regularly to spot any fraudulent activity.”
The figures also reveal that banks and other financial providers are successfully identifying more fraudulent activity thanks to increasingly sophisticated fraud prevention technology. AI solutions are increasingly being deployed in the battle, while a multi-layered approach which incorporate biometric and behavioural technology is helping companies lead the fight against fraud in 2025.
Experian UK&I is a market leader in fraud prevention technology and has prevented more than £9.5bn in fraudulent applications over the last five years.
Source: Experian Issues New Warning as Identity Fraud Soars in 2025 | Financial IT
