COMMENT
How To Prevent Identity Fraud

Fraud in the UK is becoming an extremely serious problem. Figures due to be released next week are expected to show that fraud in 2004 on credit and debit cards alone has broken through the £500m barrier.

But simply guarding your cards is no longer enough – they may be being fraudulently used whilst they are still in your wallet - and the thieves may even have applied for more cards in your name that you don't know about!

Identity Fraud is one of the fastest growing crimes in the UK, netting criminals £1.3bn last year alone. As its name implies, it is a far more sophisticated way to steal your money – the thief can access your accounts because he's pretending to be you.

High tech methods used by thieves to gain your personal details can include sending spam emails containing viruses that access information on your computer, and emails that look like bank correspondence asking you to 'confirm' your security details.

Criminals will even make bogus phone calls pretending to be from your bank to request security details to check suspected fraud. Even when paying whilst out shopping or in a restaurant your credit card's magnetic strip could be being copied so that a thief can create a clone. Some thieves will even resort to raiding your bin for personal documents.

And the trouble is, once the thieves have some of your details, it's easy for them to obtain more. Once armed with more information they can even apply for copies of your credit card statements, mortgage details and even your birth certificate - and from here they can start applying for cards and loans in your name.

A recent study by Which? Magazine has revealed the ease with which a researcher managed to steal the identity of his editor, Malcolm Coles. Malcolm's birth certificate, his mother's maiden name, his place of birth, mortgage value, and a plan of where his flat is on his street were all relatively easily obtained by the researcher. Even medical data, gym details and information regarding his shopping habits were discovered. In fact, the researcher would have accessed credit card details too, had Malcolm not forgotten to inform his bank that he'd moved!

As most of us know, the former pieces of information alone would be likely to help a thief access someone's bank accounts, as 'mother's maiden name' and 'place of birth' are two commonly asked security questions.

And as the study stressed, an amateur acquired all of this information. How much more could an experienced criminal obtain?

Identity Fraud is definitely a serious problem; the Which? survey found it to be a 'major worry' for two thirds of us and would like banks to cease using 'mother's maiden name' and 'place of birth' as security questions due to the ease at which thieves can obtain this basic information.

But there are ways to avoid it. If you're concerned about becoming a victim of ID fraud then:

• Do not use your mother's maiden name or place of birth as a security passwords
• Check your credit file annually for suspect applications
• If you move, ensure you pass on details about your change of address –and consider using the Post Office's Redirection Service for anything forgotten
• Shred post before throwing it in the bin – even addressed junk mail (and be especially careful with 'pre-approved' credit card applications!)
• Never use the same password for more than one account
• Don't carry details of your home address along with bank cards – remember, driving licenses have addresses on too!
• And help protect your cards by using Chip and Pin where possible.

Follow these steps and protect your personal information, and hopefully you won't become yet another victim of identity fraud.

You can get a free 30 day trial of Experian's Credit Expert by clicking here.