Affluent households are being targeted by fraudsters looking to take out a credit card in their name.
This is just below the five-year high which was recorded in the last quarter of 2021.
Experian said victims are most likely to be aged 50 to 59 with higher incomes and higher borrowing power, while younger families aged 40 to 44 are also being targeted.
Credit card application fraud is when a scammer uses stolen personal information to apply for a credit card or other form of loan.
In nearly three-quarters of cases analysed, the fraudster used the victims’ current address to apply for credit.
Although victims should get the money back, this isn’t always guaranteed.
Experian said people should be wary of keeping their personal information safe, particularly when using online apps and social media.
Eduardo Castro, an analyst at Experian, said: “The fraud rate is among the highest recorded in the past three years. The rapid rise in digital activity has created new opportunities for fraudsters, exposing businesses and consumers to increased risks of fraud and identity theft.
“Its crucial people do what they can to keep their personal information secure and look after their financial health.”
Fraud teams are using a sophisticated combination of technologies, such as fraud probability scores to successfully identify and prevent fraud, without impacting the experience of genuine customers.
This has allowed lenders to automate more of the application process and decline questionable applications rapidly and efficiently, rather than flagging it for manual review.
New forms of authentication are also becoming prevalent. PIN numbers sent to a person’s mobile phone have become typical, while biometrics systems – both physical and behavioural – are becoming more familiar and accepted by consumers too.
How to reduce the risk of identity fraud
Don’t share too much personal information on social media, such as your mother’s maiden name and home addressWhen you move home, set up mail redirection for at least three months. Always re-register on the electoral roll as soon as you can to ensure your details are no longer registered at your previous addressMake sure you have an individual unique password for each online account that you haveEnsure your home Wi-Fi has a strong passwordBe cautious about opening attachments in email or textCheck your credit report regularly to look for anything suspicious. Many credit checking services are free to use.