Identity Fraud Risks of Dormant Accounts
Millions of cardholders risk identity fraud by leaving accounts dormant
8th June 2005
Credit agency MyCallcredit has warned that millions of UK credit card accountholders are risking identity fraud by leaving accounts dormant.
Often, when people stop using a card, they clear the balance and then cut up the card. This, however, is not the end of the matter. Unless the card issuer is informed, the account will remain active and statements will continue to be sent out.
If people are not vigilant about checking their statements, or informing issuers of changes of address, the door is potentially left open for identity thieves to take over the account, change the address details, and commit fraud to the tune of thousands of pounds.
While the credit card issuers will normally be liable for any fraud (so long as the credit card user has taken reasonable precautions to protect their accounts security), sorting out the mess that identity fraud can cause will often take dozens of hours and cost sizeable amounts of money.
The moral of the story? If you stop using a card, don't just cut it up - tell the issuer to cancel the account, and remove the opportunity for fraud.
Read More: Money Guardian
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More on Identity Fraud: Identity Fraud (Article, 23/09/2004), ID Fraud Costs £1.7bn a Year (News, 02/02/2006), Report Calls For ID Fraud Action (News, 15/08/2005), Identity Fraud Happens Every 4 Minutes (News, 26/11/2004), Drivers Risk Identity Fraud (News, 14/04/2004) |
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