How will I know if my identity has been stolen?
Indicators that you might have had your
identity stolen include losing, or having stolen, important
documents such as your driving licence or passport, not receiving
letters you are expecting from your bank, applying for a state
benefit and being told that you are already claiming, or being
refused a loan or credit card despite having a good credit
history.
By the time you discover you are a victim,
your identity may well have been used by someone else for several
months and it can take months, or even years, to sort out the
mess.
How does ID theft occur?
Intercepted mail
Some identities are stolen by intercepting a
person’s mail, so you should be particularly vigilant if you live
in a property with a shared entrance where strangers can have
access to your post.
If this is the case, it may be advisable to
arrange to collect new bank cards, cheque books and credit cards
from your bank, rather than receiving them through the post.
If you move house make sure you inform all the
financial institutions that you deal with of your new address, and
arrange for the Post Office to redirect your post for at least a
year.
When you receive your bank and credit card
statements, check them carefully for any transactions you don’t
recognise. If you’re suspicious about anything, contact your bank
or credit card company immediately.
There has been a huge upsurge in 'card not
present' fraud, whereby thieves use stolen or cloned cards to
buy goods and services online.
Make sure you shred receipts, statements,
bills and official forms before you throw them out as fraudsters
have been known to steal individuals’ identities by sifting through
rubbish bins.
Handbags
Your identity could be adopted by fraudsters
if your handbag is lost or stolen. If this happens, it is vital to
inform the institutions concerned straightaway. If you lose your
driving licence or passport, inform the DVLA or the Passport Office
immediately
Online
Other attempts at identity theft can take
place online. Beware of emails purporting to be from your bank,
asking you to confirm your account details or passwords, a
practice known as ‘phishing.’ Banks never send such emails so never
respond to them, but report them to your bank.
Another scam is where fraudsters send you
emails or letters informing you of a huge win in a National
Lottery, saying that you need to hand over your bank details in
order for them to be able to 'send you your winnings.'
How to avoid becoming a victim
- Invest in a shredder to destroy any receipts, bills, bank
statements and even junk mail that may show your address and other
details
- Be careful when you log in to online accounts. Be aware of
others close by who may try to take note of your account
information. Don’t choose or change your security details in a
public place.
- Always keep your bank cards in your possession and never let
them out of your sight.
- Never let anyone know your Personal Identification Number
(PIN).
- When using a cash machine or using your card in a shop, beware
of anyone trying to watch you enter your PIN (known as
‘shoulder surfing’).
- Check your credit file regularlyfor accuracy. Look for
unauthorised activity, such as accounts which aren’t yours, credit
searches by companies you haven't dealt with or addresses you don't
recognise. You can arrange to receive your credit file regularly to
monitor activity.
- If you move home, inform all the relevant organisations of your
change in address. Consider using a Royal Mail Re-direct for at
least a year.
Do I need ID theft protection?
In response to the rise of identity theft, a
number of financial institutions offer ID theft insurance. If
you take out this cover and your identity is stolen, the insurer
will help you deal with the problems that arise and to get your
life back on track.
If you think you would struggle to cope,
identity theft insurance may be worth having.
Policies generally cover the expenses you
might incur if your identity is stolen. These might include
anything from legal fees for defending criminal charges associated
with identity theft; telephone calls; postage; rejected loan
application fees and lost wages if you have to take time off work
to reclaim your identity.
How do policies work?
You will pay a monthly or annual fee, normally
by direct debit. Most policies include monitoring your credit
reference files and notifying you of any changes – such as a new
loan being taken out in your name.
If you are concerned that you are a victim of
identity theft, the insurer will allocate you an identity
theft expert to help you deal with any issues that arise such as
contacting all the necessary agencies and providers.
Who offers identity theft protection?
Identity theft protection policies are offered
by a number of financial institutions, including HBOS, Sainsburys
Bank, CPP and BT.
What does identity theft protection cost?
Identity theft protection can cost £4 to
£10 a month or between £50 and £100 a year.
Premier bank accounts
Some premier bank accounts offer identity
theft protection as a ‘freebie,’ so it’s worth
checking whether you already have insurance before you buy
stand alone cover. Lloyds TSB, Barclays and Natwest all include
some form of identity theft insurance on their fee-paying
premier accounts.