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This is revealed in new research by CIFAS, the UK's fraud prevention service, a not-for-profit network with 270 Member organisations spread across banking, credit cards, asset finance, retail credit, mail order, insurance, investment management, telecommunications, factoring, and share dealing.

Members share information about identified frauds in the fight to prevent further fraud.

One in five fraudulent applications successful

The research looked at the application fraud cases filed on the CIFAS database, comparing the situation in 2004 with that in 2007.

The number of application fraud cases filed on the CIFAS database increased from 62,000 in 2004 to 77,000 in 2007, an increase of more than 24 per cent.

In each of these cases, individuals had told lies ("material falsehoods") on the application form, or had supplied false or altered documents to support their application.

In 2004, just over one in every 10 fraudulent applications was successful, resulting in 7,200 cases where the fraudster obtained the product he or she had applied for. By 2007, that had risen to almost one in 5, resulting in 14,500 cases of the fraudster being successful.

Products where fraudsters have seen increasing success since 2004 include: bank accounts, plastic cards and to a lesser extent mortgages, although communications products and loans have seen improved prevention rates.

Verification checks

The lies most frequently told on applications include lying to conceal a poor credit history and exaggerating the length of time the applicant was resident at an address.

Fraudsters recognise that a poor credit history will affect the outcome of the application, but fail to realise that verification checks are made. More than 64 per cent of the application frauds filed on the CIFAS database fall into this category.

Fraudsters believe that stability increases creditworthiness but do not realise that verification checks are made. 

Thirteen per cent of the application frauds filed on the CIFAS database fall into this category.

In addition, the use of false documents to support an application has increased considerably since 2004. The false documents most frequently used to support an application are passports, utility bills and bank statements.

Gender shift 

In 2004, 68 per cent of application fraudsters were men and 32 per cent were women. 

Although by 2007 the shift was small, with 66 per cent male fraudsters and 34 per cent female, this was the first time that women represented more than one third of all application fraudsters.

In 2004, fraudulent applications from men tended to be for asset finance - mostly for cars - and bank accounts, women were more likely to apply for loans and plastic cards. 

By 2007, male fraudsters were more likely to apply for asset finance and insurance, whereas female fraudsters more likely to apply for communications products - mobile phones - in addition to plastic cards.

In 2004, the average age of an application fraudster was, for men, just over 38, and for women, 37 and a half. 

By 2007, that had reduced to 35 years for men, and for women, just under 34 years of age.

The key changes in application fraud between 2004 and 2007 are the slight increase in the proportion of women committing application fraud and the average age for making fraudulent applications decreasing year on year both for men and women.

Female fraudsters are increasingly alternating between using their married or maiden name on applications, depending on which they feel will yield them the most success.

Lying about employment has become less prevalent, being replaced by the use of false documents - particularly by men.

The research revealed that the top five postal districts where male application fraudsters live are SE (South East London), then E (East London), B (Birmingham), N (North London) and M (Manchester).

For female fraudsters, the top five are: SE (South East London), then E (East London), B (Birmingham), G (Glasgow) and N (North London).