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Blacklisted, but don’t know why?
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ID fraud leaves the credit ratings of its victims in tatters – and often victims don’t realise until they try to borrow. Find out how to protect yourself
Half a million Brits have been credit blacklisted after falling victim to ID fraud, according to new research by insurer Liverpool Victoria (LV).
And many more may have seen their credit rating downgraded because of identity thieves opening lines of credit in their name, before disappearing.
In the LV survey, 27% of people who have experienced credit problems blamed mistaken identity or being linked incorrectly to another person. 29% said they had no idea why they had encountered a problem.
In some cases credit ratings are so damaged that the victims are left unable to access banking services or take out a mortgage. The unfortunate target may also be saddled with the legal cost of sorting the problem out.
Massive increase
John O'Roarke, managing director of LV home insurance, said there had been a massive increase in the number of people targeted by fraudsters in the last 10 years.
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"Our research shows that an unfair credit rating is a common problem for many and more worryingly, identity fraud is likely to rise sharply in the coming years,” he said.
The news comes in the same week that the specialist police unit targeting ID fraud celebrated its seventh birthday.
In its short life, the Dedicated Cheque and Plastic Crime Unit (DCPCU) has saved £315m through financial fraud prevention, recovered more than 45,000 counterfeit cards and secured 240 convictions on fraud related matters.
Despite this, LV predicts a further 440,000 will find themselves credit blacklisted over the next five years.
There are some concrete steps you can take to protect yourself from the ID fraudsters, however. Use our guide to make sure your defences are as strong as they can be.
