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Think you're safe from fraudsters? Think again. According to CIFAS, the UK's fraud prevention service, identity theft rose more than five-fold from 20,000 cases in 1999 to 137,000 in 2005.
Identity theft, the crime of using someone's personal details to obtain money, goods or credit fraudulently, cost £1.7bn in 2005 according to Home Office figures.
How it works
In its most basic form, it can be as straightforward as having your credit or bank card intercepted in the post.
One tactic is for a fraudster to phone a card issuer and ask to change the home address. Shortly afterwards they'll phone again, saying they've lost their card. The issuer sends out a replacement with the original cardholder remaining blissfully unaware - until they notice that they've stopped receiving bills.
However, this type of fraud is only the tip of the iceberg. More danger lurks when fraudsters apply for a variety of cards and bank accounts in your name.
Bin raiders
It can be easy for them too. Fraudsters can take over your identity by working through bins in search of bills and documents you've thrown away that contain account information.
And it's surprisingly easy for such searches to strike gold. MEL Research carried out a week-long survey in October 2005 of rubbish and recycling in the London borough of Wandsworth and found that 77% of bins contained at least one or more items that could help fraudsters in stealing an identity.
Dead applicants
The 'jackal' method (from the Frederick Forsyth novel The Day of the Jackal) involves fraudsters using the name of someone who's died to commit crime. They pretend they've lost their birth certificate and simply ask for another to be issued.
Fighting crime
As the card industry becomes more sophisticated, so do the fraudsters. The Chip & PIN credit and debit cards, where personal numbers replace signatures, help prevent certain kinds of fraud. But they aren't specifically aimed at identity theft. Ultimately, preventing ID theft comes down to individual responsibility.
How you can avoid being a victim
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Register with Check My File and fill out their online quiz, which highlights how you can reduce any risk factors.
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Buy a shredder or carefully rip up all documents. Always destroy bills and documents - don't recycle them or throw them out. That includes any unsolicited mail sent to you as well as applications for credit.
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If you move home, register with the Royal Mail forwarding service for at least a year.
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Never give your personal details to anyone who phones or sends you unsolicited emails.
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Check with a credit reference agency to see if anyone is making applications in your name.
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Avoid using the same password for all your accounts.
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Don't carry details of your home address with your bank cards in case they're stolen.
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Don't use your date of birth or mother's maiden name as a password.
How to spot when it's happening to you:
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Your credit card company or bank gets in touch to check on unusual transaction patterns.
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Unusual transactions appear on your bank and credit card statements.
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You're contacted by a debt collecter about stuff you haven't bought.
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A loan application or other credit is unexpectedly rejected.
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Regular bills and statements never arrive.
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You receive mail for accounts and services you know nothing about.
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You get a letter or phone calls relating to a credit card you've never applied for.
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You're contacted by CIFAS (an industry body that deals in fraud prevention) warning you that you may be a victim of identity theft.
What to do if it happens to you:
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Phone the police immediately and get a crime reference number.
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Get in touch with every company you're involved with, explaining the situation. Make sure you keep a record of all conversations and copies of all letters and emails. Have your account numbers and other details to hand when you phone.
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Ask for a copy of your credit file from credit reference agencies such as Experian and Equifax. You can get advice about removing or amending information that you believe to be incorrect.
Find out more
Online security - how we protect your money online.
Chip & PIN - how cards are changing to fight fraud.
Verified by VISA - a new way to fight online fraud.
Lost & stolen cards - report them immediately.
Important information
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