Majority Stay Honest – But One in Five Willing to Give False Information for Better Deals
· 16% say they would open an account with a different email address for a new customer rate or offer
· 11% don’t see an issue with putting yourself as a named driver on a vehicle for someone else, even though you don’t drive it
· 7% say it’s acceptable to exaggerate or downplay your income in an application
· Gen Z and Millennial consumers are more likely to consider giving false information with 44% of 18–24-year-olds and 38% of 25-34-year-olds indicating so.
While the vast majority of consumers stay honest, UK businesses still face a battle against first-party fraud as financial pressures persist – according to new data from global information and insights company TransUnion.
Despite sustained cost of living pressures, with data showing that almost half of people (43%) feel their household income is not keeping up with inflationi, 74% of consumers still say they would be unlikely to give false information to get a preferential rate on a financial product. However, 19% of adults admit they would consider providing incorrect details to get better rates – with the rest being unsure.
James Robinson, Managing Director of Consumer Interactive at TransUnion in the UK, comments: “It is heartening to see that most people stay honest when applying for financial products, despite experiencing continued strain on their finances – and that should be commended. It is also important to remember that not everybody who says they would give false information ends up doing so. But even a relatively small minority of consumers doing so can cause big headaches for financial providers – and risks for the individuals involved.”
The link between financial insecurity and falsifying information
Demonstrating the link between financial insecurity and potentially falsifying information, Gen Z and Millennial consumers are significantly more likely to be driving this trend than other age groups.ii In order to get a better rate, 44% of 18–24-year-olds indicate that they would consider giving incorrect personal details, while 38% of 25-34-year-olds say the same.
The trend also indicates that consumers may lack awareness of alternative, legal ways to get better deals. This can include taking more time to shop around, accessing pre-approved deals for financial products, or crucially, checking your credit score and taking simple steps to improve it. See below for tips from TransUnion.
In fact, 86% of people who used a credit monitoring service in the past say that it ended up helping them with their finances in at least one way. This includes identifying action steps to improve credit scores (31%), checking for fraudulent credit applications using their ID (27%), or identifying opportunities to refinance their current loans or obtain a lower rate on a credit card (19%) – all of which can eliminate the need to consider giving false information.
What consumers consider acceptable to falsify
In terms of what types of false information are seen as most acceptable by consumers to give to financial providers, one in six (16%) say they have no problem with opening an account with a different email address to access a preferential rate or offer for new customers.
Meanwhile, 11% don’t see an issue with putting yourself as a named driver on a vehicle for someone else, even though you don’t drive it. A similar proportion (9%) think the same about receiving money from a third party into your bank account and forwarding on to someone else in exchange for commission. Just 7% say they think it is acceptable to exaggerate or downplay your income in an application.
However, it is important to remember that even changing a small detail or two can technically count as committing fraud, which comes with big legal and financial risks to the individual but also drives up the costs of doing business to organisations, leading to increased prices of goods and services.
Top tips from TransUnion that could help get a better deal on financial products
1. Check Your Credit Score Regularly
Monitoring your credit score can help you understand your financial health and identify simple steps to improve it – such as making sure you are on the electoral register and setting up Direct Debits for minimum repayments – all boosting your chances of qualifying for better rates.
2. Look for Pre-Approved Offers
Take advantage of pre-approved deals from financial providers. These are tailored to your credit profile, saving time and increasing your chances of approval.
3. Consider Alternatives Like Credit Unions
Credit Unions often offer competitive rates and flexible terms, providing an ethical and community-focused alternative.
4. Refinance or Negotiate Existing Deals
Use credit monitoring tools to spot opportunities to refinance loans or secure lower rates on credit cards, saving money without needing to look elsewhere.
5. Stay Vigilant Against Fraud
Regular credit monitoring can alert you to suspicious activity or fraudulent applications, protecting your finances and making sure you aren’t being held back by the actions of others.
Notes:
i Data from TransUnion’s Consumer Pulse study, which is based on a survey of 1,000 adults in the UK, conducted between 1 and 7 May 2024.
ii Generations are defined as follows: Gen Z, born 1995–2005; Millennials, born 1980–1994.
