Money News
Organised criminal gangs operating global identity fraud rings are behind a dramatic rise in identity fraud, according to new data from credit information provider, Experian.
It reports that organised crime contributed to a 69% increase in the number of people contacting the firm's 'Victims of Fraud' service in H2 2006, compared to the same period a year earlier.
Although part of the increase can be attributed to greater awareness of identity fraud, much of the rise is down to sophisticated attacks by organised gangs. They specifically target the most affluent people and those who are most likely to be vulnerable.
The fact that 97% of victims didn't have any knowledge of, or connection with, the person who hijacked their identity shows that this is no longer an opportunistic crime - especially since the most common method of carrying out the fraud was to take over a person's current address.
This is a relatively complex procedure that requires preplanning and involves intercepting or redirecting post. Often, this information is found or exchanged online and has been acquired illegally from the databases of large retailers or travel and entertainment outlets.
Current address take-over accounted for 45% of all cases reported to Experian in the last six months of 2006.
The top targets for ID criminals are wealthy professionals, such as directors and business owners, who often live in prime city locations. They are almost four times more likely to have their identities abused than the average UK resident.
People renting - especially those in local council or housing association accommodation - are also at high risk, as are young, single people renting high-value flats in fashionable areas.
Almost half the individuals contacting Experian were tipped off by financial services companies. A further 41% realised they had become targets when they checked their credit reports and saw that fraudulent accounts had been opened or applied for in their name.
Top tips for keeping your identity safe
1- Beware of 'phishing' (e-mails that appear to come from your bank, an online retailer or other organisation which often direct you to fake websites that ask you to confirm your personal details).
2- Never give out personal details over the phone. Be sure you know who you're talking to and call them back if necessary - Only enter personal information, including credit card and debit card details, into websites that you trust and are secure.
3- Make sure you use a firewall to stop hackers getting access to personal information stored on your computer.
4- Guard against spyware and Trojan programs, which can monitor what you do online, by installing up-to date anti-spyware and setting your browser preferences.
5- Avoid using obvious passwords like your mother's maiden name, family names or dates of birth. Use a different password for each site or account.
6- Shred and safely destroy anything containing personal information before throwing it away.
7- Keep your bank account details safe and monitor bank and credit card statements for unfamiliar entries.
8- If you move home, redirect your post, give your new address to all the organisations you deal with, update the electoral roll and register your name and old address with the Mailing Preference Service.
9- Never let your credit or debit card out of your sight. When entering your PIN, make sure no-one is watching.
10- Monitor your credit report on a regular basis.
Click here for a free 30-day trial of CreditExpert and a free copy of your credit report.
12 April 2007 © Moneyextra.com
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