Identity Fraud - What to do about it
This article explains what help you can get if you think someone has used, or is likely to use, your name and personal details to get credit. It also gives advice on how you can guard against becoming a victim of 'identity fraud'.
How credit referencing and fraud prevention works
When a lender receives an application for credit, they want to make sure that:
- The person applying for credit is who they say they are and lives
where they say they live
- The other details on the application are correct
- The person's name and address (and possibly other personal information)
can be confirmed
- Most lenders use a range of procedures to spot identity fraud and prevent it from happening. Although most fraud is prevented, some fraudulent applications are accepted because fraudsters often use sophisticated methods to trick lenders into believing their applications are genuine.
Don't be a victim
Identity fraud is committed in many ways. A fraudster might use your name and address to open a new credit account or fraudulently use a credit account you already have. The fraudster then uses some or all of your personal information to get finance or to buy goods or services on credit.
Although cases of identity fraud are still fairly low, this type of fraud is currently the UK’s fastest growing crime. So you should take certain precautions to reduce the risk of your personal details being 'hijacked'. You also need to know that you can get help if you need it and useful contact details are included at the end of this article
Always be careful
It's easy to be careless with personal information. How many times have you freely given your personal details over the phone to someone calling from the bank, a local shop, a national organisation or a company you deal with? Always check the identity of these people by calling them back.
It is best to do this by getting their office number from directory enquiries and then confirming their position with the switchboard before speaking to them again. Never give personal information to people who say they are calling from companies you have not dealt with before. They could be trying to get your identity details or existing finance information (such as account or credit card numbers) in order to commit fraud.
You need to be especially careful when sending personal information over the internet. You can find good advice at www.cardwatch.org.uk or on other reputable crime prevention sites.
You should always completely destroy any rubbish that a fraudster could use, such as bank or credit card statements, chequebook stubs, till receipts that give your credit card or debit card details and any documents that someone could use as identification. This could even include an envelope with your name and address on. So destroy anything that gives away any of your personal details. You can get inexpensive document shredders from most stationery shops.
Do not be tricked into telling anyone details that could help them get access to your accounts, such as your mother's maiden name or the name of your first school. Also, never respond to e-mails asking for personal or financial information.
Fraudsters have been known to apply for credit in someone else's name and redirect that person's mail. If your mail suddenly stops arriving, contact your local post office immediately to check that it is not being redirected.
If you change address
If you move, you could get a copy of your credit report to help you remember which companies you have credit with so you can give them your new address. Don't tempt the people moving into your old address by having your replacement storecard or new catalogue delivered to them. Always arrange for your mail to be redirected to your new address. Contact your local post office for an application form.
You can also ask the Mailing Preference Service to take your name and previous address off most of the direct mailing lists in the UK. (Contact details for the Mailing Preference Service are given at the end of this article.)
Act quickly
If you suspect a problem (particularly if any of your credit cards, charge cards or forms of identification are lost or stolen and you have reason to believe they may be misused), tell the organisation that issued the missing item, and the police, as quickly as possible.
If you think that someone may be using your identity to get credit, you should get a copy of your credit report. You can quickly spot any applications or accounts that don't belong to you because your credit report includes a record of recent applications for credit, along with credit accounts taken out in the last six years.
If a fraudster has used your identity or your existing accounts, or has opened new accounts in your name, you should also contact the CIFAS Protective Registration Service (contact details are given at the end of this article). For a small fee, they will put a warning on your credit reports held by all credit reference agencies. When a lender receives a credit application in your name, and does a credit check, the warning will tell them to take extra care to confirm the identity of the person applying and to make sure your address is not being used fraudulently. So a CIFAS warning on your report may delay your own credit applications but, if you suspect you are a victim of fraud, it is worth this inconvenience.
If a company contacts you about a debt you know nothing about, get back in touch with them straight away. If the credit was applied for from an address that is different to yours, you should easily be able to prove your own address which will show that the debt is not yours. If you discover that someone has used your name to get goods or services, even from a previous address of yours, you should contact the police immediately as a crime has been committed.
Useful contacts
- CIFAS Protective Registration Service (Phone: 0870 010 2091)
- Mailing Preference Service (Phone: 020 7291 3310)
- Citizens Advice Bureau - Look in your local phone book under 'Citizens Advice Bureau'
- Consumer Credit Counselling Service (Phone: 0800 138 1111)
- National Debtline (Phone: 0808 808 4000)