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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