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A recent BBC documentary indicates that identity theft is the fastest growing crime of the 21 st century. Identity fraud statistics show that in 2007, over 200,000 of you became a victim of identity theft, with the fraudsters stealing millions of pounds. Make sure that you are protected by following our simple and straight to the point advice.
Did you know that fraudsters can impersonate you and take out various types of credit using your good name and can even take over your existing bank accounts by pretending to be you? All the fraudster needs is a few of your details. A document displaying your name and your address makes it even easier for them to do this.
What methods does a fraudster use to obtain my details?
In order to misuse an identity, fraudsters need as much information as possible on their victims. The details and documents they need depend on how they plan to use the stolen identity, but even the most mundane of personal details can be helpful to a fraudster trying to pass as someone they aren't.
Fraudsters have many methods to try and get hold of victims' details and documents - some are ingenious, others more obvious:
- Getting hold of useful documents
- Bin raiding
- Shoulder surfing
- Skimming cards
- Spoof Letters, callers or canvassers
- Advance fee and "419 Fraud"
- Lottery frauds
Previous address fraud, where your name is used at your old address or your post is opened, is currently the most common type of identity fraud.
What does the fraudster do with a stolen identity?
Once the fraudsters have enough information and documents relating to their victim, they can begin their fraudulent activity with the stolen identity.
There are a host of different tactics they use, but typically they will use the identity to:
- Apply for credit cards, loans, and even mortgages.
- Buy goods over the Internet or through mail order.
- Take over the victims existing accounts.
The fraudster has no intention of repaying any of the above, safe in the knowledge that the trail leads back to someone else.
What signs should I be looking out for if I suspect fraud?
There are a number of indicators that may show your identity is at risk:
- You receive bills addressed to you for goods or services you've not ordered, or letters to you from solicitors or debt collection companies relating to debts that aren't yours.
- You receive confirmation letters or statements for accounts in your name you've not opened.
- There are transactions (usually debits) on your account statements that you don't recognise.
- There are accounts appearing on your credit report that you don't recognise.
- There have been searches of your credit report that you don't recognise.
- Important identity documents have gone missing or been stolen such as your passport, driving licence, utility bills or bank statements. What can I do to prevent my details from being used fraudulently?
At this stage the best advice is to stay calm! There are measures you can take to reduce the likelihood of becoming a victim, and if your identity is hijacked, there is help and advice available. There are a few simple precautions you can take to help prevent your identity from being used:
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Protect your personal details
- Protect your personal details, treat them as highly confidential and think before you give them away. Who is asking and do they really need this information?
- Dispose of your documents securely or shred them. Documents containing any of your personal details are useful to a fraudster.
- Destroy any document showing your name, address or other details. This includes documents such as bank statements, utility bills, chequebook stubs, debit/credit card receipts, even envelopes or a letterhead showing your address. A fraudster wouldn't think twice about rifling through your rubbish, or 'Bin Raiding'
Monitor your credit report and keep a close eye on your statements
- Inspect your credit report for accuracy. Check for unauthorised activity, such as new accounts you didn't open, credit searches by companies you haven't dealt with or address links to addresses you don't recognise. If you would like a Free Credit Report, you can do so by signing up for a 30-day trial of the CreditExpert Monitoring service.
- Check your bank/credit card statements without delay. Report any transactions you don't recognise to the card issuer, even if they are only for small amounts.
- Make sure you formally close any accounts you no longer require. Dormant accounts may be reactivated by a fraudster without your knowledge.
- Register with CIFAS, the UK 's Fraud Prevention Agency. They can set up a Protective Registration in your name, and every time an application is made in your name, the company should ask the applicant for a password and/or ID documents to support the application made.
Ensure correspondence received is genuine
- Letters, faxes or emails: If you receive letters or emails requesting personal details, such as your PIN numbers or passwords check they are genuine, and check that the company that is requesting the information is genuine. A legitimate financial institution would never request these details from their customers in this way.
- Telephone cold callers - why are they calling you? Never give information to an unknown caller who can't prove their identity, even if they do claim to be from your bank. Politely offer to call them back if you have any suspicions.
- Where possible, avoid disclosing your mother's maiden name or using it as a password - it can be easily discovered. You might want to consider using a less obvious word or name instead.
- Avoid signing up for junk mail. Consider registering for the Mail Preference Service and/or the Telephone Preference Service to reduce the amount of unsolicited correspondence you receive.
Moving home
- If you move home, inform all the relevant organisations of your change in address. To ensure that all your credit accounts move with you, get a copy of your Free Credit Report. This makes sure you identify all of your accounts and don't forget those you may not have used for a while.
- Consider using a Royal Mail Re-direct for at least a year to make sure all post is forwarded to your new address.
- Contact your local authority and enrol on the Electoral Register for your new address as soon as you can. Accordingly, make sure that you are closed off the register at your previous address.
- Don't tempt those moving into your old address - a replacement store card or a mail order catalogue arriving at your old address is an absolute gift to a fraudster.
If you have already been one of the unlucky victims of fraud, have a read of our article Everything you need to know about Identity Theft: I've been a Victim of Fraud – What Should I do Now? (Part 1) for straight to the point, simple advice.
Recommended Resources
CIFAS
Mailing Preference Service
Telephone Preference Service
iammoving.com
Electoral Roll Registration |
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