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ID fraud hits new high
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New figures reveal that identity theft costs us £35 each a year. We show you how to protect yourself against Britain’s fastest growing crime
Identity fraud has hit a record high, according to Government research released this week. The latest Home Office estimates put the annual cost to the UK at a staggering £1.7bn – that’s £35 per person.
Previous official estimates – dating back to July 2002 - put the annual cost at £1.3bn, but new and increasingly sophisticated frauds have sent fraud losses soaring.
In the latest scam to be exposed, crooks are stealing personal details from second-hand PCs. Experts warn that people who sell their old computers are putting themselves at risk by failing to remove their personal information.
How the fraudsters operate
Identity theft occurs when fraudsters get hold of enough personal and financial details to impersonate you. Common methods include raiding your rubbish in search of valuable information - such as bank and credit card statements; stealing personal documents such as passports, or intercepting your post.
And the cost can be devastating. Credit reference agency Experian has found that it can take up to 500 hours to sort out the mess – and make it impossible to get a credit card, loan or mortgage in that period.
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1. Always keep your cash cards and chequebooks separate and stored in a safe place. Essential documents - such as your passport, birth certificate, driving licence, even utility bills - can give thieves vital information. Without it a criminal will find it hard to steal your identity - so keep them safe!
2. Never give out personal information unless you’re certain you know who’s asking for it. Watch out if you’re called by anyone claiming to be from your bank or the police. Banks only ever ask for specific characters or numbers from your password, not the whole word. If someone calls, ask for their number and return the call to ensure they are who they say they are.
3. Think twice before responding to emails requesting personal information. If in doubt, ask for proof of identity or make your own checks. Never disclose your card PIN (Personal Identification Number) to anyone.
4. Read your bank statements and check your receipts regularly. If you spot something suspicious, contact your card issuer or bank immediately.
5. Your mail is valuable to identity fraudsters. If a bank statement, card statement, utility bill or any other financial statement doesn’t turn up, contact the relevant company immediately.
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6. Guard your cards! Don’t let them out of your sight when you’re paying for something. Report lost and stolen cards - or any suspicious activity on them - to your bank or building society immediately. Keep a note of your card issuers’ phone numbers to ensure you can do this quickly - this will protect you against potential losses.
7. If you move house, contact your bank and other businesses to inform them of your change of address. The Post Office can also redirect your post for a small fee.
8. If you suspect you might be a victim, check your credit report. It shows all the loans, cards and other credit accounts in your name – so if you spot anything you haven’t applied for, you know immediately that someone is probably using your identity to commit a fraud. You can access your report for free using our CreditExpert service.
9. Tell the police if you think your identity has been stolen and used fraudulently and get a crime number or incident number.
10. Make checking your credit report part of your routine. That way, you will always know if anything is wrong – and can take the appropriate steps to put matters right.
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If you think you’ve been a victim of identity fraud, tell the Credit Industry Fraud Avoidance System. They’ll put your name and address on their system.
You should also tear up any mail bearing your address to make sure bin raiders can’t get their hands on it.
You should also check with the credit reference agencies to see whether any applications for credit have been made in your name. You can ask to have any incorrect information removed by contacting the following organisations:
Experian: 0870 241 6212
Equifax: 08705 143700
Callcredit: 0870 060 1414
The relevant organisation will flag your name and address, to ensure that any applications for loans or cards in your name will automatically be investigated. If you suspect your post is being tampered with, contact the Royal Mail customer enquiry line on 08457 740740.
How much could the fraudsters cost you?
If someone else uses your card before you tell your card issuer it has been lost or stolen or that someone else knows your Personal Identification Number (PIN), the most you will have to pay, in theory, is £50.
In practice the bank or building society will usually refund the full amount lost. But if you’re negligent, for example, by keeping your PIN with your card, the bank may ask you to meet all the losses.
If your card is used fraudulently, but you still have the card in your possession, you won’t be liable for any losses. This could happen if you were a victim of card-not-present fraud or counterfeit skimming.
Taking care of your cards, cheque books and PINs is essential to help prevent fraud and protect your accounts.
Safeguard your cash against ID fraud - sign up for a free trial of our CreditExpert credit checking service now
Last updated 05 February 2006
