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Identity Fraud

Identity fraud occurs when someone fraudulently uses someone else's personal information to buy goods, services, or obtain credit. In many cases the victims of identity fraud may not even realise their information is being used for fraudulent purposes. Identity fraud can lead to victims being unable to attain credit, loans or a mortgage until the problem has been rectified. Identity fraud also costs the government, and therefore the taxpayer, millions of pounds a year. Identity fraud can also affect businesses.

Identity fraud is one of the UK's fastest-growing crimes, costing the economy an estimated £1.7bn in 2006. The growth of identity fraud is fuelled by various factors ranging from organised financial crime to international terrorism. The development of e-commerce has led to increased de-personalisation of the customer-supplier relationship and not knowing exactly whom they are dealing with puts the organisation, the industry it operates within and society as a whole at risk from the growing problem of identity fraud.

Legislation and regulations designed to combat money laundering, identity fraud and the protection of the vulnerable mean that citizens are increasingly asked for proof of identity, to combat this fraud. More than 500 million identity checks are undertaken annually in the UK alone with every adult identified an average of 11 times a year. Organisations across all public and private sectors are now looking at identity and age verification not just as a compliance issue but also as a way of fighting identity fraud, vastly improving customer registration rates and the customer experience through slick yet reliable processes.

How to Recognize Identity Fraud

Identity fraud has become a growing concern as individuals are finding how easy it is to take advantage of the open door that technology leaves and use it to obtain the personal information of others. Once they have this information they can use it in hundreds of ways and can wreak havoc on the life of the individual whose identity they've stolen. What makes the situation even worse is the fact that identity fraud is considered a quiet crime and often, people only realize that they are a victim once the damage has been done. It is then the responsibility of the victim to prove they are innocent rather than the company pursuing an unknown perpetrator. Knowing what to look for and what signs may signal identity fraud has taken place can greatly help in protecting one's identity.

When looking for signals that they have been a victim of identity fraud, the biggest sign individuals should look for is mailings and bills that are being sent to them for unknown reasons. An invoice for goods or services that an individual did not purchase is reason enough to question and the company who sent the invoice should be contacted immediately to find out the details of the purchase. After this, further steps can be taken in ensuring that no more damage is done through identity fraud. Another huge warning sign is if an individual applies for something, such as benefits or a credit card, and are told that they are ineligible to apply because there is already an application on file for them. This indicates that someone has committed identity fraud and with it, has applied for a number of things.

Even when identity fraud is not suspected, it's important for individuals to carefully review their personal credit file from time to time. This report will provide full disclosure on who has been accessing the individual's personal information such as financial records and within what time frame they did so. Obtaining the report may cost a small fee but it will save you hugely in the long term and is necessary for an individual to get their identity back.

GB Group