Money News
Identity fraud in the UK grew by 68% in the first half of 2007, compared to the same period a year earlier, with the wealthy and those living in the Greater London area most at risk. Analysis of the experiences of people who turned for help to Experians Victims of Fraud service after their identities had been hijacked by criminals shows that London remains the biggest target for fraudsters.
In Kensington, residents are almost five times more likely to become victims than the UK average. It is followed by the Clapham Junction area of Wandsworth; Victoria Street, which leads from Victoria Station towards Westminster; Queensway; and Chelseas Kings Road.
Away from the capital, affluent commuter towns are ID fraud favourites, with St Albans, Guildford, Slough, Maidenhead and High Wycombe generating most cases. Not surprisingly, criminals look out for wealthy victims with the best credit ratings, so that they can borrow the largest possible amount of money before they are discovered.
The growing involvement of organised criminal gangs is reflected in the increasingly sophisticated ways that identities are being compromised. The most common method is present address fraud, which involves intercepting mail and accounted for 39% of cases between January and June 2007.
Forwarding address fraud, in which mail is redirected, showed the strongest increase and was responsible for 32% of frauds reported to Experian.
In most cases, any financial losses caused by identity fraud are borne by the companies involved, not the individuals who have become victims. The average identity fraud means a loss of £680, with mail order companies targeted most frequently - they account for 68% of all new cases. Lenders offering loans are hit hardest financially, losing an average of £6,138. They account for 34% of all financial losses.
Experian says that a notable result of this year's analysis is the rise in the number of people who discovered for themselves that they had become victims of ID fraud. Previously, people had most often been notified by financial services companies, although some were also refused credit, received notice of an unexpected debt or simply noticed something wrong in bank or credit card statements.
In 2007, victims most often realised their position while checking their credit reports the personal histories of the credit they have applied for or taken out and their repayment record, along with other information such as registration to vote and their addresses. Because all applications and accounts are shown, people easily spot loans, mortgages, catalogue and mobile phone accounts that they did not apply for themselves - which is how 55% of those who turned to Victims of Fraud knew that they had a problem.
"The dramatic rise in identity fraud coincides with increased activity by organised criminal gangs," says Jim Hodgkins, managing director of CreditExpert. "As this research shows, credit report monitoring is one of the single most effective ways to protect yourself from becoming yet another victim - and it has the added benefit of helping you to stay in control of your finances."
10 October 2007 © Moneyextra.com
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