| Six million Britons have had their identity stolen, according to a new survey by npower – almost 44 times as many of us as official figures had previously suggested. But don't panic – there are some simple precautions that can keep you safe.
ID fraud is one of Britain’s fastest-growing crimes, costing the country £1.7 billion a year, according to government figures. It takes place when criminals get hold of personal information and use it to get credit – anything from credit cards to mail order shopping to loans – in another person’s name.
It takes an average of 500 days before an individual discovers what has happened, based on an analysis by the Victims of Fraud service run by the credit reference agency Experian. It can then take a further 300 hours of work to clear your name and put the record straight.
In the meantime, you can find it impossible to get a mortgage, loan or credit card because your credit report – the history of your credit obligations, repayment record, applications for credit, court judgements and bankruptcies – has been ruined by an unscrupulous stranger.
So it pays to be careful. Follow these tips, which are designed to stop you joining the growing ranks of victims.
1. Never share sensitive or financial information
People in their 20s are the most careless, according to the npower survey, which was conducted by YouGov among 2,200 adults. More than two thirds of them have give family or friends secret details, such as their PIN numbers, bank account details and passwords. Older people are almost as bad, with 40 per cent of those aged 30 to 50 and 33 per cent of over-50s sharing confidential, personal data.
You shouldn’t write down passwords or PINs either, in case the note is lost or stolen. And it’s worth memorising different passwords and PINs for different accounts and services. That way, if one is compromised, people won't have access to all your data – and your cash.
2. Check your statements carefully
Go through your credit card and bank statements every month, matching up the items with what you know you’ve spent. Unexpected entries can be the first indication that somebody is stealing your money.
3. Shred sensitive information
Never throw away financial statements, offers of loans and credit cards, catalogue account details or anything else that could be used to impersonate you. Some thieves will go through your rubbish to see if there is anything useful – a practice known as bin raiding.
4. Learn to love your credit report
Your credit report is such an effective tool in the fight against ID fraud that the government recommends regular checks if you want to protect yourself.
It gives you a simple snapshot of your obligations. If you do not recognise any entries – for example, there’s a new application for a credit card that you know you didn't ask for – contact the lender and the credit reference agency that holds your report and let them know that your ID may have been stolen.
The simple way to see your report is to sign up for a free, 30-day trial of CreditExpert, the online credit monitoring and identity protection service from Experian. It allows you to check your credit report as often as you like – you should visit it regularly, to ensure that everything is as it should be.
5. Don't risk important documents
Don't carry your passport, driving licence, insurance details or even address with you unless it’s essential – keep them securely at home. Leave your credit cards and cheque book behind, too, if you don't need them. If your bag or wallet is stolen, you could be handing the thieves your identity as well as your cash.
6. Report thefts
Always tell the police, as well as your bank, credit card issuers and anybody else who might be affected if you suffer a theft. That way, your loss is on the record and organisations who might be approached by the thieves will be forewarned.
7. Keep an eye on your post
If any of your post goes missing, tell the Post Office immediately – someone may be intercepting it, especially if you live in a building with a communal hall where mail is delivered.
You could also contact the Mailing Preference Service (MPS) at www.mpsonline.org.uk and ask them to remove your name from their direct mailing lists – smart fraudsters have used mailshots to apply for credit in someone else’s name.
Be especially careful when you move house. Use the Royal Mail’s Redirection Service to forward your post to your new address for at least a year. You can’t rely on other people to do it for you – the npower survey found that 56 per cent of the under-30s would not pass on other people’s post, 25 per cent would throw it away and ten per cent would open it.
8. Ensure you’re registered to vote – in the right place
Lenders use the electoral roll to check that anybody applying for credit, such as a loan, card or mortgage, is who they say they are and lives where they say they do.
When you move home, deregister at your old address and re-register at the new one. That way, the people who move into your previous home can’t offer apparent proof that they are you.
9. Be suspicious of unsolicited calls, e-mails and researchers
Phishing – sending e-mails that seem to come from a financial institution asking for details such as account numbers, PINs and passwords – is growing rapidly.
Another option is to cold call people at home and ask for the information, pretending to be from a reputable company or market research firm. Even charity collectors on the High Street can be crooks in disguise, after your personal data.
Never give out information such as PINs, passwords, date of birth, bank account or credit card data. Telephone the organisation that is allegedly behind the approach, using the number in the phone book or in previous correspondence – and warn them what is happening.
10. Keep on checking your credit report
There’s no point in looking at your report once, then forgetting about it. To protect yourself properly, you need to check regularly, because ID thieves could target you at any time.
CreditExpert sends out weekly alerts by text or e-mail to warn you if there has been any significant change to your credit report, so you can log on immediately and see whether you are being impersonated. Always respond to these alerts – they give invaluable peace of mind if you do.
• See your credit report for free by clicking here
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