| Identity Fraud & Identity Theft
Identity theft is when your personal details are stolen and identity fraud is when those details are used to commit fraud.
Identity fraud can happen when:
- fraudsters use a false identity or somebody else’s identity details to obtain goods or services by deception
- criminals use genuine but falsely obtained documents, such as other people’s passports or national insurance cards, to travel or to get public sector and welfare services
- identity information belonging to an individual or organisation is used to open accounts or apply for credit
- a fraudster uses identity details to produce counterfeit documents.
Fraudsters can use your identity details to:
- open bank accounts
- obtain credit cards, loans and state benefits
- order goods in your name
- take over your existing accounts
- obtain genuine documents such as passports and driving licences in your name.
Stealing an individual’s identity details does not, on its own, constitute identity fraud. But using that identity for any of the above activities does.
Identity theft
Identity theft is when someone’s personal details, such as their name, date of birth, current or previous addresses are used without their knowledge or consent.
Also known as ‘impersonation fraud’, identity theft happens when fraudsters access enough information about someone’s identity to commit identity fraud. Identity theft can take place whether the fraud victim is dead or alive.
If you’re a victim of identity theft, it can lead to fraud that can have a direct impact on your personal finances and could also make it difficult for you to obtain loans, credit cards or a mortgage until the matter is resolved.
What’s more, it costs the government and financial services industry many millions of pounds every year.
Your identity can be stolen in a number of ways:
- A thief finds out your bank details or sees information about you on your bank or credit card statements or personal bills
- A thief finds out the personal details you’ve provided to online shopping sites and social networking sites, or finds them from other sources, such as births and deaths registers etc.
- You might reveal enough personal information by replying to a fraudulent email, eg an email advising you have won a prize in a foreign lottery.
Are you a victim of identity fraud?
You may already be a victim of identity fraudsters if:
- you have lost, or had stolen, important documents such as your passport or driving licence
- you’ve not received the post you expected from your bank
- items appear on your bank or credit card statements that you don’t recognise
- you identify entries on your credit file from organisations you don’t normally deal with
- you apply for a state benefit but are told you’re already claiming it
- you receive bills, invoices or receipts addressed to you for things you haven’t bought or services you haven’t asked for
- you’ve been refused a credit card or a loan, even though you have a good credit history
- you discover a mobile phone contract has been set up in your name without your knowledge
- you receive letters from solicitors or debt collectors for debts that aren’t yours
- financial institutions you don’t normally deal with contact you about outstanding debts.
What should you do if you’ve been a victim of identity fraud?
- Act quickly – you mustn’t ignore the problem. Even though you didn’t order those goods or open that bank account, the bad debts will end up under your name and address.
- If you believe you’re a victim of identity fraud involving plastic cards (eg credit and debit cards), online banking or cheques, you must report it to your bank as soon as possible. Your bank will then be responsible for investigating the issue and they will report any case of criminal activity to the police. The police will then record your case and decide whether to carry out follow-up investigations.
- If you think you’re a victim of another kind of identity fraud, you must report the matter to the relevant organisation. Depending on their advice, you should then alert your local police force. You should report all lost or stolen documents – such as passports, driving licences, plastic cards, cheque books – to the relevant organisation.
- If you’re not sure which organisation to call, contact us for advice.
- Contact Royal Mail if you suspect your mail is being stolen or that a mail redirection has been fraudulently set up on your address. The Royal Mail has an investigation unit that will be able to help you.
- Get a copy of your credit file. Your personal credit file will show exactly which financial organisations have accessed your details. Help to keep your personal information secure by asking for a copy of your credit file from any of these credit reference agencies:
- Look at your credit file closely. If you find entries from organisations you don’t normally deal with, contact them immediately. Remember to keep a record of all your actions, including the people you’ve spoken to and when, and keep copies of all letters you send and receive.
- If you suspect someone else has used your personal details fraudulently, the Credit Reference Agencies’ Victims of Fraud Service will help you. Their service is free.
Protect yourself against identity fraud
- Don’t throw out anything with your name, address or financial details without shredding it first.
- If you receive an unsolicited email or phone call from what appears to be your bank or building society asking for your security details, never reveal your full password, login details or account numbers. Most banks will not approach their customers in this manner.
- If you are concerned about the source of a call, ask the caller to give you a main switchboard number for you to be routed back to them. Alternatively, hang up and call your bank back on the legitimate phone number printed on your bank statements.
- Check your statements carefully and report anything suspicious to the financial institution concerned.
- If you’re expecting a bank or credit card statement and it doesn’t arrive, tell your bank or credit card company.
- Don’t leave things like bills lying around for others to look at.
- If you move house, always get Royal Mail to redirect your post.
- Get regular copies of your credit report from a credit reference agency.
Your credit report as a tool against identity fraud
Stolen personal information can be used to open accounts such as mobile phone contracts or utility services in the victim’s name or apply for credit, such as credit cards or loans.
When an application for credit is made under an individual’s name, the lender does a search of their credit report to determine their credit worthiness (the ability to repay any money owed).
The Home Office recommend that obtaining your credit report is a way of protecting yourself against ID theft. A credit report will show you any searches done by a lender, what date the search took place, what name and address it was done against and also for what type of application. It will also show what credit accounts are set up in your name.
An identity protection service such as ProtectMyID monitors your Experian credit report and alerts you to potential fraudulent activity via email or SMS. If you are a victim of identity fraud, a dedicated caseworker will work with you to help you resolve any problems. Visit ProtectMyID to learn more. |
