Consumers need to be careful with bank statements and literature

Industry officials have warned that given the increase in identity theft and fraud over the years consumers need to start being far more careful with their bank statements and other literature that may have personal details on such as credit card statements, bills, bank letters, and other sensitive documents.

Many people tend to treat their personal documents, financial letters, and statements like normal waste paper, and simply put them into the waste paper basket when they are done with them or sling them into black bags outside. However, this leaves them open to identity theft because once they are in the rubbish outside they are accessible by anyone.

Experts have said that in order to minimise on becoming victims of identity theft and fraud consumers should ensure that all paperwork such as this is shredded properly so that others cannot access details about the accountholder. The advise has come from the fraud prevention service CIFAS, which has outlined some of the dangers that can lead to consumers becoming victims of identity fraud.

CIFAS said that the effects of fraud can be far-ranging, stating this could be anything “from finding out that a fraudster has set up, or attempted to obtain, accounts, products and services in your name, through to discovering that an existing account has been emptied by criminals”.

The agency said that it was not only paper documentation and bank details that consumers had to be careful with, as many fraudsters and identity thieves were now operating online. Officials said that it had therefore become increasingly important for consumers to be more vigilant and careful when reviewing or using their financial accounts via the internet, as otherwise fraudsters could quickly and easily gain access to important account and personal details.

Tags: name, fraud, identity theft, Bank statement, Crimes

Rise in bank card fraud recorded

Britain’s fraud prevention agency, Cifas, has reported an increase in card fraud in the first three months of this year, with many cardholders finding themselves at the receiving end of identity theft. The agency claimed that it recorded around 27,000 victims of this type of fraud during the first quarter of the year, reflecting an increase of 6000 or 23 percent.

There has also been a 45 percent increase in the number of cases where the fraud has been highlighted when it too late and the fraudsters have already got away with the cash. Fraudsters are said to be using a range of tools and methods of getting hold of details of customers, including social networking sites such as Facebook in cases where consumers are careless with their personal information.

Consumer campaign group Which? said that many people were increasing the risk of becoming victims of card fraud by writing down their PIN because they cannot remember it. Some people have even given their PIN to other people that they feel they can trust, but this can also increase the risk of falling victim to this type of fraud.

In a poll nearly 10 percent of people that admitted to writing down their PIN said that they had a copy of it written down at their workplace. The campaign group said that if cardholders were found to have been careless with their PIN or personal details then there was no guarantee that they would be reimbursed if they fell victim to card fraud.

An official from Which? said: ‘The results show that too many consumers are putting their finances in jeopardy by not taking simple precautions. Writing down your Pin is like leaving your door open when you leave the house.’

Tags: which, credit card fraud, Cifas, fraud, identity theft

Another data breach bungle by HMRC

It was revealed recently that HM Revenue & Customs had been involved in another data breach bungle, raising further concerns over identity theft. The latest blunder involved over two thousand letters being sent out to claimants with regards to child benefits, but many of them had the personal details of other people on. Read more

Tags: identity theft, Taxation in the United Kingdom, Crimes, HM Revenue and Customs, security, United Kingdom, Data breach, Data security

Data breach could result in FSA fine for Skipton

The Skipton Building Society has hit the headlines recently after it was revealed that there had been a serious breach of security. Over the past couple of years the topic of security breaches has become more and more of a concern, with many fearing that they have become victims of identity theft as a result of security breaches by banks and other financial institutions. Read more

Tags: Crime prevention, Financial Service Authority, Skipton, National security, Data security, Public safety

Tips For Keeping Your Identity Safe

With the increases in identity theft, you have to be more careful than ever when doing your day-to-day financial transactions that you once took for granted as being safe. The simple tasks of withdrawing money from your bank account, doing the weekly grocery shopping or taking out an insurance policy has made many people victims of identity theft. Read more

Tags: id theft tips, phishing, identity theft, online Internet sites, operating systems, unsolicited phone calls, Ethics

Understanding Your Credit Rating

A lender is not under any obligation to approve credit for you or to give you a loan. When you apply for credit, lenders look at many different factors in order to determine if you are a good risk to repay. It is important to have an income and you will have to supply proof of being employed. In addition to assessing your income and your existing payments, lenders also look at your credit rating. This alone is weighted heavily in the approval or denial of credit. Read more

Tags: equifax, personal finance, experian, religious affiliation, credit reports, credit application, identity theft, period of time

HMRC offers huge reward for return of sensitive data discs

Following the huge blunder where two discs containing the bank and personal details of 25 million people were lost by HM Revenue and Customs a huge reward has been offered by official for the safe return of the information. The discs were lost some weeks ago by HMRC, and although there has been no indication that they have fallen into the wrong hands everyone affected has been contacted in writing and urged to be extra vigilant to ensure that nothing is amiss when it comes to their bank accounts. Read more

Tags: fraud, interest rate cuts, safe return, identity theft, security, police, data, bank account

More consumers concerned about safety of personal details

More consumers are concerned about the safety and security of their personal details than ever before, an information body has claimed.

The Information Commissioner’s Office (ICO) said this fear of identity theft is driven by various factors including the recent data losses, particularly by the government, as well as the rise in the number of incidences of identity theft being recorded.

David Smith, deputy commissioner at the ICO, said: “As we all give more and more information out to all sorts of organisations, they build up bigger and bigger databases with pictures of our lives and the risks get greater all the time.”

He added that consumers should not panic, but should question organisations as to why they may need personal information.

Research carried out by consumer advisers CPP found that London is the top worst location for credit and debt card fraud theft, with 20 per cent of Londoners say that they have had their cards stolen before.

Tags: number, debt card, location, body, deputy commissioner, identity theft, london, information

Numbers threatened by identity fraud rises

Direct Line has responded to the latest Home Office figures on identity theft by adding Identity Fraud Assistance to its home insurance policy.

The latest figures from the government indicate that identity fraud is the UK’s fastest growing crime and it currently costs the economy up to £1.7 billion per year.

Andrew Lowe, head of home insurance for Direct Line, said the numbers threatened has increased over the last eight years.

“Victims of identity fraud could encounter debt collectors, court actions and difficulties getting a mortgage, credit card or bank account if their credit report is not corrected,” he warned.

Meanwhile, figures from Cifas, the UK’s fraud prevention service, show that 136,966 incidents were reported in the period between January and September 2007, almost a ten per cent increase on the findings for the same period in 2006.

In some cases of identity fraud, without expert help and advice, it may take the victim as long as 400 hours and cost up to £8000 before things are put right.

Tags: identity fraud rises, bank, fraud, economy, help, service, identity theft, Victims

Consumers need to be on the electoral register to avoid bad credit rating

Consumers could receive a bad credit rating if they are not on the electoral register, according to experts.

Equifax, the credit checking service, said that younger people in particular should ensure they are registered as a poor credit rating could prevent them from being approved for a loan.

Neil Munroe, external affairs director at Equifax, said: “You need to be identifiable, and the electoral roll is still one of the key areas that is used to identify somebody.”

“So you need to make sure you’re on the electoral roll if you’ve not been voting,” he warned.

According to Equifax, when checking credit ratings lenders are also ensuring that the consumer is the person they say they are in a bid to combat increasing instances of identity fraud.

In 2006 the Department for Constitutional Affairs estimated that there were at least 550,000 unregistered voters in London.

Figures from the body revealed that one in four Londoners under 24 were not registered to vote compared with only two per cent of over-55s nationally.

Tags: rating, bid, particular, Credit card, key areas, somebody, roll, identity theft

‘Viligence’ advised to avoid identity theft

Consumers are advised to exercise “vigilance” in face of identity theft risk, rather than rushing to buy insurance.

An industry expert has said that after news that the personal information relating to 25 million people in the UK has been stolen, consumers must think about the options available to them for protection.

Peter Gerraud, head of insurance research at moneysupermarket.com, explained that while there are products on offer that cater specifically for this type of cover, “many of these products are dubious value for money”.

“Most will cover losses if fraudulent transactions take place. However, if consumers are vigilant and report any unusual activity to their bank or card provider these losses will be covered by the provider as a matter of course anyway,” he continued.

He added that consumers should be sure to check statements on a regular basis to avoid the “time, stress and effort” involved in resolving the problems identity theft can cause.

Tags: dubious value, business, identity theft, identity theft risk, vigilance, uk, provider, type

Financial fraud sees continued upwards trend

Recent data for the end of the third quarter shows that fraud is still on the increase.

According to CIFAS fraud prevention service, there has been a rise in the majority of the different areas of financial fraud.

Cases of application fraud for the aquiring of credit, insurance or other products, was up by 23 per cent with a total of 57,321 cases uncovered members of CIFAS.

Asset conversion and facility takeover cases showed sharp increases in the first three quarters of this year compared to the same period in 2006, at 24 per cent and 34 per cent.

Meanwhile, false insurance claims rose by nearly nine per cent in the same period.

Chief executive of CIFAS, Peter Hurst, commented on the findings: “Our statistics for the first three quarters of the year show a clear and worrying trend. Fraudulent activity is at an all-time high.

“Fraudsters are becoming more sophisticated and fraud departments are working harder than ever to protect their organisations from the onslaught.”

CIFAS members prevented financial losses valued at £1,900 per minute this year, compared with £1,400 per minute last year in the same period.

Tags: chief executive, false insurance claims, rise, prevention service, finance, identity theft, insurance claims

Credit card fraud on the rise, according to Experian

Identity fraud, with thieves taking credit card numbers from victims, is on the increase, financial information provider Experian said today.

Recent research from the company shows a 69 per cent year on year rise in identity fraud between 2004 and 2006.

Experian spokesperson Peter Brooker said that a new generation of fraudsters was taking the theft of credit card numbers as a mere starting point.

“One of things we are seeing is that there is an awful lot of current and previous address fraud”, he said. This occurs when “the fraudsters are actually, not just taking over people’s accounts or using various methods to get hold of people’s credit card numbers, but are actually taking their entire identity”.

Research from KPMG, out today, shows that overall rates of fraud are rising dramatically, valued at a total of £594 million in 107 cases coming to court already this year.

This beats the overall totals for the years 2000-04, combined, with KPMG terming the figures a “step change” in fraud rates.

Tags: Credit card, people's accounts, theft, previous address fraud, overall rates, spokesperson, identity theft

MP claims that banks are too laid back about ID theft

A Tory Party MP has claimed that banks in the UK are far too laid back when it comes to the problems of identity theft – a problem that is growing in the UK and has become a major concern in many areas. Read more

Tags: id theft, Crimes, identity, Tory Party MP, british bankers association, access, identity theft, identity fraud

ID theft warnings ignored

Too many Britons are still bypassing advice on how to protect themselves against identity theft, credit reference agency Callcredit has warned.

A third of Britons continue to throw away documents such as bank statements and receipts, which contain vital personal information, without shredding them first, a study from the Information Commissioner’s Office found this week.

Meanwhile, as many as a quarter of people would be oblivious if they were targeted by identity fraudsters – since they do not check their bank statements.

Customers should work these small but important habits into their financial routine, stressed Callcredit’s director of industry relations Melanie Mitchley: “Personal data is the lifeblood of identity thieves and they are gorging themselves on people’s complacency.”

“Remembering to destroy personal documents such as bills and statements before throwing them away would go a long way to starving ID fraudsters of opportunities,” she added.

Amid growing concerns about hi-tech online identity fraud, it’s important to keep your PC or laptop updated with anti-virus and firewall software to exclude hackers.

According to the UK fraud protection service, CIFAS, the number of victims of identity impersonation rose 19.91 per cent last year compared to 2005 levels.

Tags: identity theft, credit card fraud, Personal computer, callcredit, year, director, thieves, theft

Fraud warning not being heeded

Millions of credit card holders in the UK are leaving themselves open to fraud.

Despite continual warnings about the dangers of identity theft, many people are not heeding the advice, says Morgan Stanley Consumer Banking.

The most common mistake made by British people is failing to shred documents such as credit card statements when throwing them away.

Figures from Morgan Stanley show that 40 per cent of people fail to do this, with that number rising to 59 per cent among people under 30.

Another risk taken by many people (27 per cent) is using the same pin number for a variety of different cards and accounts, while the third most common (12 per cent) is storing pins on personal computers or laptops.

“The findings fuel concerns that Britons are not taking heed of warnings to protect themselves,” said Patrick Muir, marketing director at Morgan Stanley Consumer Banking.

“There has been a lot of attention placed on the issue of ID theft but, worryingly, many people still don’t believe it could happen to them.”

Morgan Stanley found that younger people (under thirties) are the least likely to be aware that they are the victim of ID theft as 45 per cent do not check their statements.

Tags: Stanley Consumer Banking.The, cards, continual warnings, Marketing, director