Identity Fraud (or Identity Theft) is the fastest growing kind of fraud in the UK. It happens when someone gets hold of your personal details and uses them to obtain goods or services by pretending to be you.

Often, your details are used to obtain credit or other finance services, and this credit will most likely not be repaid. It can take months before you find out what’s happening, by which time untold damage may have been caused to your credit rating.

In extreme cases, the fraudster may be able to ‘hijack’ your bank accounts and credit cards.

How can you prevent it?

Fraudsters only need a few of your details to begin their work. Even your name, address and birthdate can be enough to make a start, and every time they successfully masquerade as you they will be adding to their profile of you, making it easier and easier to commit further fraud.

Considering this, you should be very careful about who you give information to – if someone asks you for personal info, ask yourself why they need it, and only reply if you’re satisfied it’s necessary to do so and that the query is genuine. Banks are well aware of this fraud, and will never ask you for your account details or passwords etc unless you’re the one making contact (for example, with telephone banking).

You should destroy any documents containing sensitive information rather than simply throwing them away – fraudsters often scour residential rubbish bins in the hope of finding such documents.

Credit Cards

Credit cards are as valuable as cash to a fraudster – once they have your details it can be easy to order goods online or over the phone, and while most card issuers will have anti-fraud guarantees, it’s a hassle you don’t need.

You should inform you bank immediately if you lose your credit cards or cashcards – if they fall into the wrong hands, they can easily be used fraudulently.

Also, if you move home, arrange for mail redirects so that any replacement cards etc are not left hanging around in your old letterbox.

Credit Reports

It’s a good idea to keep an eye on your credit file, as any fraudulent activity will probably show up on it (such as applying for credit in your name). Services such as Experian and Check My File make this simple, and could save you a lot of trouble and expense if you spot any fraud in its early stages.

If you’re a victim

If you spot something on your credit file that you don’t recognise, or receive post or bills for services that you’ve not ordered, contact the organisation involved as soon as possible and ask for an explanation.

If you find a suspicious transaction on your credit card or bank statement, query it with your bank – this will alert them that there may be a risk of fraud, and they will take the matter very seriously.

If you’ve confirmed that someone is definitely using your identity, it may be necessary to close all your existing accounts and re-open them. Your bank or credit company will help you with this as it’s in their interests to end the fraud too.

You can also ask that your credit file includes a note that you’ve been a victim of fraud. This will be seen by all credit companies who you apply to in the future, and will alert them to be extra cautious with any application to ensure that it’s genuine. You can also register with CIFAS who will add you to their database of ‘at risk’ cases, another added layer of protection.

It will be a good idea to locate all your important documents such as passport, drivers licence, etc, to make sure that none of them have gone missing.

Check with Royal Mail that no one has set up a mail redirect on your address. Make sure that your post delivery is secure – for example, any letterbox in a communal area is lockable.

Finally, remember that you are not liable for any debts run up by fraudsters – once you can show that fraud has happened, the debt will be cancelled and any costs incurred refunded. The only cost you will have to bear is that of your time and worry in sorting the mess out.