Credit card fraud warning

Posted 2008-05-18

Credit card fraud is likely to rise as a direct result of the credit crunch, an industry expert has claimed.

David Kuo, head of personal finance at Fool.co.uk, believes that tightening economic conditions will likely lead to an increase in people providing false information on credit card applications.

An increase in the cost of living coupled with high inflation rates have left many peoples finances stretched and looking for ways to plug the gap.

"What has happened at the moment is that people have found their personal finances being stretched in several directions. First of all they have bigger outgoings and…any increase in income that they have had has not been sufficient to cover outgoings," he said.

Mr Kuo advised those considering lying to providers in order to secure credit that such a move would not be wise.

According to research by the UKs fraud prevention service CIFAS, the number of people telling untruths on credit applications increased by 13 per cent in the first three months of 2008.

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