Credit providers have taken their attention away from front-end identity verification and authentication, according to Equifax.
The claim by the credit reference agency comes after national fraud prevention service Cifas recorded nearly 60,000 cases of identity fraud in the first five months of 2013.
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This would appear to be a rise from figures showing an 11% reduction in car finance fraud in late 2012, according to the Finance & Leasing Association, which also reported a 7% drop in fraud volume earlier in the year.
Peter Harrison, fraud expert at Equifax, advised: "Credit providers need to apply stronger and more robust authentication processes at the application stage for credit and store cards.
"In particular, the level and type of questions asked as part of an application need to be more effective so that fraudsters are deterred or identified as early as possible."
He did, however, warn it was "vital that the process isn’t so onerous that it results in genuine customers walking away."
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