LONDON - Experian (OTC:EXPGF), the global information services company, has reported a concerning 22% increase in identity theft incidents in the United Kingdom this year compared to last year. The company has also warned of a potential surge in fraudulent activities during the upcoming holiday shopping season. According to Experian, credit card fraud rates have seen a substantial uptick of nearly 50% in November compared to the same period last year.
Fraudsters have been employing more sophisticated methods, utilizing emails, texts, and phone calls to extract sensitive information, often sourced from the Dark Web. Eduardo Castro of Experian UK&I drew attention to the significant emotional impact these crimes have on victims and emphasized the importance of being wary of unexpected contacts and offers that seem too good to be true.
Statistics from UK Finance revealed that consumers lost a staggering £580 million to scams in just six months of 2023, with Authorized Push Payment (APP) scams accounting for £239 million of this total. Despite these alarming figures, banks' security measures have successfully prevented approximately £651 million worth of fraud attempts.
In response to the escalating threat, Experian has launched a social media campaign to raise awareness about scams. The campaign features a depiction of Father Christmas falling victim to identity theft and reporting it at a police station as a cautionary tale about the risks of mishandling personal information. Castro highlighted the ongoing need for public education and technological advancements to keep pace with the constantly evolving tactics of fraudsters.
InvestingPro Insights
As Experian tackles the growing issue of identity theft and credit card fraud in the UK, the company's financial health and market position are of interest to investors. According to real-time data from InvestingPro, Experian boasts a robust market capitalization of $33.25 billion, underlining its substantial footprint in the information services industry. Despite recent concerns over fraud rates, the company's earnings quality remains high, with free cash flow surpassing net income, indicating efficient operations and strong profitability.
Investors should note that Experian is trading at a high earnings multiple, with a P/E ratio of 32.27, reflecting a premium valuation in the market. This is further evidenced by the company's Price to Book (P/B) ratio, which stands at 8.1, suggesting that the market holds Experian's assets in high regard. With a consistent dividend track record, having maintained payments for 44 consecutive years, Experian offers a dividend yield of 1.53%, a testament to its commitment to shareholder returns.
For those considering an investment in Experian, there are over 12 InvestingPro Tips available, offering deeper insights into the company's financial health and market performance. Among these, the tip highlighting the company's high return on invested capital may be particularly relevant, as it underscores Experian's effectiveness in using its capital to generate profits. With the InvestingPro subscription now on a special Black Friday sale, offering up to 55% discount, investors have the opportunity to access these valuable insights at a reduced cost.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.