Mobile and telecoms sector “hit hard” by escalating fraud

Nearly 3,000 cases of unauthorised SIM swaps – whereby criminals hijack a victim’s mobile number by porting it to a new SIM without their consent – were filed to the National Fraud Database (NFD) last year, impacting multiple telecoms providers.

Once in control of a victim’s number, criminals intercept calls and messages, including crucial two-factor authentication codes, enabling further fraudulent activity to take place, such as account takeovers for apps and other forms of identity theft.

The latest Fraudscape report reveals that, in 2024, a record-breaking 421,000-plus cases were filed to the NFD (itself the UK's largest and most comprehensive database of fraud risk data and intelligence). The telecoms sector has emerged as a primary target, with identity fraud linked to mobile products up by 87%, reflecting a surge of more than 16,000 cases.

In addition, facility takeover fraud – where criminals take control of an individual’s accounts – soared by 76%, with telecoms and online retail the most affected sectors. Notably, 48% of all account takeover cases in 2024 involved mobile phone accounts. Filings concerning unauthorised mobile upgrades rose by 96%.

Older consumers remain a target. Those aged 61 and over now make up 29% of all account takeover cases, with filings about this demographic rising by 90% year-on-year.

Urgent need

Simon Miller, director of policy, strategy and communications at Cifas, explained: “Our latest figures underscore the urgent need for collaboration and the sharing of data and intelligence across sectors to tackle fraud. In the mobile and telecoms sector, criminals are exploiting vulnerabilities in the system to assume control of people’s mobile identities with devastating consequences.”

Miller continued: “At Cifas, we enable our members across all sectors – including telecoms, banking, retail and insurance – to share crucial information, helping to prevent over £2.1 billion in losses last year alone. Together, we can outpace the criminals.”

Cifas urges consumers to be vigilant. Monitor mobile accounts for unexpected changes and look out for notifications recommending security PINs or passwords from telco providers.

Businesses, meanwhile, should adopt stronger identity verification methods and continue sharing threat intelligence across industries.