How to avoid identity fraud

Research published to coincide with the launch of National Identity Fraud Prevention Week (NIFPW) found that while 95% of the public are aware of the threat posed by ID theft, cases continue to rise because people are still being careless with their personal information.

Around 7% of the UK population – over four million people – have fallen victim to identity fraud to date, losing between £1,190 and £9,000 each. Over 80,000 cases of ID theft were reported in the UK in the first nine months of this year alone, according to a study commissioned for the launch of the 2011 NIFPW campaign.

If your identity is stolen by a fraudster, it can take months to get your credit report back in order and deal with the repercussions of the crime. Although any monetary loss will usually be repaid to you, damage to your credit score as a result of ID theft can result in credit rejections, and could even bring debt collectors to your door.

Although there is little you can do about criminals accessing your personal information from the servers of large companies as happened in a number of cases earlier this year, the most high-profile of which being the Sony PlayStation debacle, there are a number of steps you can take to protect your identity from fraudsters both off and online.

Speaking at the launch of this year’s NIFPW campaign, Andrea Davis, a spokesperson from campaign partner Fellowes, said, “No-one can afford to be complacent about ID fraud, everyone is at risk, whether young or old. It is important to ensure that you are not delivering your information straight into the hands of fraudsters.

“The risk is very real – both off and online – and we should all be taking steps to protect our identities. It is worrying that one in four people may be literally throwing their identities away and a huge number of people are sharing sensitive information on line.”

So what can you do to protect your identity?

1. Buy a shredder or burn your mail

One of most popular and low-tech ways for fraudsters to get hold of your personal information is by going through your rubbish. Throwing out letters and bank statements that contain sensitive information can provide criminals with all they need to apply for financial products, identification documents and state benefits in your name. Fraudsters can even use the information they find to take control of your accounts and have your correspondence redirected.

2. Verify the identity of anybody asking for your personal information

If you receive an unsolicited phone call from a bank or utilities firm asking you to confirm personal details, call the company back on an officially-published phone number. You should also never give out personal information to cold callers on the doorstep. Again, contact the business any caller claims to represent on a published number.

3. Inform companies when you move

Receiving your unopened mail will feel like Christmas for a fraudster who’s moved into your old home. Ask Royal Mail to forward any post for at least six months after you move to make sure you don’t miss anything.

4. Protect and alternate your PINs and passwords

Avoid using birthdates and relatives’ names and never write anything down. Try to use different passwords for different accounts and change them regularly.

5. Make sure your anti-virus software is up-to-date and your firewall is turned on

Keep viruses at bay by keeping your anti-virus software up to date and turning on your firewall whenever you use the internet. This will protect your computer from malware that logs your personal information and sends it back to fraudsters.

6. Be wary of phishing scams

Look out for emails that purport to be from companies asking you to click-through to update your details or rectify a problem with your account. If you’re unsure about the authenticity of an email, don’t open it and contact the company it claims to be from.

7. Don’t post detailed personal information on social media profiles

Always make sure your privacy settings are set to protect your personal details and avoid adding information like your date of birth and address. These could be used to apply for credit in your name.

8. Keep an eye on your bank statements

Be vigilant for any transactions you don’t recognise. Contact your bank or credit card provider to query a transaction if it looks unfamiliar. You should also contact your bank or credit card provider if your statements fail to arrive. They may have been redirected by a fraudster.

9. Check your credit file regularly

Contact the three major credit bureaus (Callcredit, Equifax and Experian) to request a copy of your report at least twice a year. Look for any financial products or accounts you have not applied for. If there are any entries you don’t recognise, contact the credit agency concerned immediately.

10.  Avoid carrying letters or other documentation with your bank cards

If these are stolen, a fraudster will have all that’s needed to apply for credit or identity documents in your name. You should also make sure your smartphone, tablet computer, and laptop are password-protected in the event of loss or theft.

If you think you’ve been the victim of identity theft, the Association of Chief Police Officers and the Home Office recommend that you contact all of your creditors (banks, credit and store card providers, and phone and utility companies…) to ask them to monitor your accounts, even if they have not been affected by the fraud. You should then contact your local police station and the credit bureaus.

You can ask CIFAS, the national fraud prevention organisation, to place a “Protective registration” on your credit file if you suspect your identity has been stolen. This will alert all lenders to carry out further checks if they receive an application for a financial product in your name.