Identity fraud is a rapidly growing crime in the UK and is costing the British economy as much as £1bn a year, according to official government estimates.
Latest crime figures from CIFAS (12 October), the UK’s fraud prevention service show that during the first nine months of 2009, identity fraud – where a third party steals your identity to obtain goods and services by deception – increased 33 per cent on the year before, representing 59,328 instances of crime.
As if this isn’t bad enough, account takeover fraud – where a third party hijacks a person’s existing accounts and empties it rather than going to the bother of impersonating them – also increased in the same period by 23 per cent, with a total of 16,364 crimes recorded.
Worryingly, the products most targeted by fraudsters over the last nine months were bank accounts and plastic cards, the CIFAS data showed.
These figures come at the same time as National Identity Fraud Prevention Week (12th-18th October) is launched, an initiative aimed at helping people protect themselves from becoming victims.
Here we show you how to check your credit file and take extra precautions against fraudulent activity to make sure you don’t become a victim.
Check your credit file
Research from credit reference agency, Experian reveals that on average it takes 467 days to discover that you are a victim of identity fraud, so checking your file from time to time is a must. Your credit file is a combination of your loan, credit card and mortgage application history and shows how reliable you are at making repayments. This information is combined with your address, whether you’ve had any county court judgements against you as well as if you’ve registered to vote and is then used by lenders who assess whether or not you are creditworthy.
You can check your credit file through credit reference agencies in the UK such as Experian, Equifax and Callcredit. In return for a small fee, they will provide you with a credit report, but they often offer free trials as an introductory offer.
Consider protecting your credit file
Consider investing in identity theft products offered by the major credit reference agencies which alert you when there has been a change to your credit status. This will ensure that if you are targeted by fraudsters, you can deal with the situation straight away and limit the damage it has on your ability to get credit from lenders.
Investigate any anomalies on your credit file
If you do happen to get refused credit from a lender then be sure to investigate the reasons why, as it could be a sign that your credit report has been damaged by fraud. Also make sure to respond immediately to any communications you receive from lenders or debt collection agencies. This may not be a mistake and could be a sign that someone has attempted to get credit in your name. If you do come across something on your credit file that you don’t agree with, then contact the relevant lender to get this resolved.
Monitor your post
If you move home, it’s wise to redirect your mail for around six months as the person who moves into your previous home is under no obligation to forward your post onto you or even dispose of it responsibly. According to CIFAS, it is very common for fraudsters to intercept post and then redirect it in a bid to try and take over existing accounts and open new ones. So be sure you keep track of your bills and if you don’t receive one, contact the relevant company.
What to do if you become a victim of identity fraud
Act quickly and immediately alert all the relevant companies you suspect could have been or could be targeted by the fraudsters. You may also have to call the police, however the organisations involved should be able to advise you further on this. Also, make sure you inform your bank of the fraud so they can monitor any unusual transactions. Finally, it may be worth contacting credit reference agencies such as Equifax, Callcredit or Experian to help you identity how your credit file has changed and what steps you can take going forward to prevent this happening again.
