Identify Theft

Identity Theft

Identity Theft is one of the fastest growing crimes.

Identity Theft :

Is taking the name and other personal details of another individual
The kind of information stolen may include credit card details (issue date, expiry date, card number, issue number) date of birth, passport details, driving licence details, current address or previous addresses, household bills, (especially gas and electric) mothers maiden name, etc. etc. – the kind of detail used to help establish identity in an application for all kinds of services, ranging from credit products to bank accounts, from insurance to utilities.
There are two types of Identity theft.

Where the actual theft of credit card, cheque book, passport, driving licence, etc.
These items can be used fraudulently, to obtain money, goods or services.
The original be copied, forged, or even presented to the police as proof’ of identity, for example after a road traffic accident, etc.

Where it's just the information that's stolen. (Sometimes referred to as Bin Raiding)
The main problem with information theft is that you don't realise that it's been stolen until it's used for 'Identity fraud'

Identity Fraud :

Can be described as the use of a stolen identity in criminal activity, to obtain money, goods or services, etc. by deception.

How serious is the problem?

For the victims of identity theft, it is very serious indeed.

They often loose a lot of money and it can also affect their credit rating and so their ability to obtain finance, insurance, even a mortgage may be temporarily compromised. The resulting problems can be very difficult to sort out.

Who are the Victims of Identity Theft ?

Man, woman, rich, poor - anyone can fall victim to identity theft. In fact, it is probable that the better your credit rating and financial standing, the more likely are you to be impersonated.

These are some of the warning signs to watch out for that could suggest you have become a victim of identity fraud and a fraudster is using your details to obtain goods and services in your name:

	Your regular bank or credit card statements fail to appear, or you notice that some of your mail seems to be missing.
	Your credit card statement includes charges for items you have not purchased or ordered.
	A debt collection agency contacts you about goods you have not ordered or an account you have never opened.
	You receive a telephone call or letter telling you that you have been approved or denied credit for accounts that you know nothing about.

This can mean that your credit rating could be in danger, since there may well be defaults on your credit file, resulting from fraudulent activity against banks, insurance companies etc.

How You can Help to Prevent Identity Fraud:

You can significantly reduce your chances of becoming a fraud victim, by taking simple precautions:

	Do not carry your extra credit cards, utility bills, your birth certificate, passport or other Identity documents except when necessary.
	Never let your credit card out of your sight and make sure that your card is only swiped through one machine per transaction. (See Credit Card Counterfeit Fraud)
	Always retain credit card receipts, and securely destroy them before disposal.
	Never leave your purse or wallet unattended, or in open view in your car, even when your car is locked.
	Do not discard credit offers without first tearing them into small pieces or shredding them. Always do the same with other sensitive information like credit card receipts, bank statements, telephone bills, and utility bills. The information printed on them can be enough for an identity fraud.
	Reconcile your cheque and credit card statements as soon as possible after receiving them, and notify your card issuer of any purchases you did not make.
	When you make applications for credit, or insurance on the telephone or in a public place like a shop, take care to ensure your personal details are not overheard by others, who might use them in an identity fraud. Keep any waste papers with personal details on them about you, to destroy yourself.
	Never provide any credit card, bank, or other confidential information to anyone by telephone, especially if they are calling you, unless you can positively verify that the caller is legitimate.
	Memorise your passwords and personal identification numbers (PINs) so you do not have to write them down. Be aware of your surroundings to make sure no one is watching you input your PIN.
	Keep a list of all your credit accounts and bank accounts in a secure place so you can quickly call the issuers to inform them about missing or stolen cards. Include account numbers, expiry dates, and telephone numbers of customer service and fraud departments – or register now with a card protection company which will do this for you should the need arise.
	Avoid so called ‘credit repair’ organisations. These are usually scams run by crooks or at the very least unscrupulous people who make money by preying on people with money worries. You have no way of knowing how they use the information they request from you. If you have genuine problems, your creditors are the first ones to contact. Your local Citizens Advice Bureau can also help.
	Order your credit file report once a year from the major credit reference agencies. Check for any unauthorised activity. Should any suspicious information show up on the report, question the account and/or make enquiries. If you need help with this, contact the agency or agencies concerned.
	When you move house, make sure you put a mail re-direction in place for at least one year.

What to do if you believe you may have fallen victim to identity theft:

	Don’t ignore it. It won’t go away, and the problems will be harder to solve the longer it goes on.
	Start contacting everyone involved immediately, and keep a record of all your actions, who you spoke to and when, copies of letters sent and received.
	Immediately report the incident to the police, especially if it involves stolen identification documents. Insist on receiving a Crime Reference Number, or some documentation to record the incident.
	If a passport or driving licence is stolen or lost it should be reported to the authorities as soon as the loss is known. Report any suspicious circumstances also.
	Immediately report all stolen cheques or cards to the issuers, and request new ones. Follow up telephone calls with written notification. Get new cards, account numbers, and PINs if you use credit or other plastic cards to access banking services. Do not continue to use a compromised PIN.
	Notify the Post Office immediately if you suspect mail theft or suspect a mail redirection has been fraudulently set-up on your address– they have an investigations unit who will be able to help.
	Destroy all cheques and cards immediately after you close a bank account. Ask your bank not to send new cheque books and credit cards to your home address. Tell the bank that you prefer to pick them up.

The CIFAS Protective Registration Service

If you believe your identity documentation may be misused, you should contact the CIFAS Protective Registration Service. A CIFAS Protective Registration may be placed by individuals against their own address, when they have good reason to believe it may be used by a fraudster, for example, when documentation such as a Passport has been stolen.

CIFAS is the UK’s Fraud Prevention Service. Members of CIFAS - financial services, retail credit, mail order, mobile phones etc – routinely check applications for credit or other facilities, such as insurance or mobile phones. A CIFAS Protective Registration warning on an address indicates to these organisations that they may need to carry out additional checks.

When you apply for Protective Registration, you will be asked to supply information that will be used to cross-check any applications in your name. This may be done over the telephone, and will be actioned immediately, but registration must be confirmed in writing.

For more details, click here

To request Protective Registration, telephone 0870 010 2091

What is being done to tackle the Problem?

Companies go to great lengths to establish the identity of their customers – they have to - under Money Laundering Regulations, which demand that they ‘know their customer’ and verify both name and address.

When opening accounts, proof of name and address is required, and companies carry out system checks too. It is common for a lender to ask to see a photo Identity such as a passport or driving licence plus a recent utility, council tax bill or Inland Revenue tax code notification. But the checks don’t stop there. The electoral roll is checked too, and any payment history on existing accounts on a credit reference agency can be taken as supporting evidence of the individual’s address. Fraud databases like CIFAS are also checked to ensure repeat offenders are identified.

The Government has recognised the extent of the problem as it is costing the Public Services large sums of money in fraud losses too. During 2002 the Government is consulting on the introduction of ‘Entitlement Cards’. These cards would be a more secure form of identification than many of those available today. One of the proposals is for a central database which financial services companies could consult to verify the status of an Entitlement Card and in so doing identify any forgeries. For many people this would be faster and more convenient than the identification processes used today.

Credit Card Counterfeit Fraud

Counterfeit card fraud cost �160.3 million in 2001, an increase of 50 per cent on losses of �107.1 million in 2000. A counterfeit card is either one that has been printed, embossed or encoded without permission from the issuer, or one that has been validly issued and then altered or re-coded.

Most cases of counterfeit fraud involve skimming, a process where the genuine data on a card’s magnetic stripe is electronically copied onto another, without the legitimate cardholder’s knowledge.

Skimming normally occurs at retail outlets - particularly bars, restaurants and petrol stations - where a corrupt employee skims a customer’s card (Swipes it through a duplicating machine) before handing it back, then sells the information on higher up the criminal ladder where counterfeit cards are made. In other cases, the details obtained by skimming are used to carry out fraudulent card-not-present transactions. Often the cardholder is unaware of the fraud until a statement arrives showing purchases they did not make.

(Cardholders should always keep their card in sight when making a transaction)

Fraudulent use of card details (Card-not-present fraud)
Fraud on phone, mail order or internet transactions

Card-not-present fraud cost �95.7 million in 2001 and occurs when neither the card nor its holder is present at the point-of-sale, as happens in telephone, fax, mail order and internet transactions.

This crime involves using fraudulently obtained card details to make a purchase. Usually the details are taken from discarded receipts or copied down without the cardholder’s knowledge. As with counterfeit fraud, the legitimate cardholder may not be aware of the fraud until a statement is received.

ATM (Automated Teller Machine) Fraud.

ATM fraud is not a type of fraud but the location where it occurs, usually with lost and stolen cards. Most cases of ATM fraud occur when the legitimate cardholder has written down their PIN and kept it with their card in a purse or wallet that is stolen.

An increasingly common problem is shoulder surfing - where criminals look over a cash machine user’s shoulder to watch them enter their PIN, then steal the card using distraction techniques or pickpocketing.

ATM fraud that involves card-trapping devices is also on the rise. The device retains the card inside the ATM, at which point the criminal approaches the victim and tricks them into re-entering the PIN. After the cardholder gives up and leaves, the criminal removes the device, with the card, and withdraws cash.

ATM fraud cost the industry �21.2 million in 2001, five per cent of total fraud losses.

(Never write down your PIN and be alert when using cash machines)