Avoid an identity crisis

LAST month, we reported on a fraud most foul, uncovering the petty criminals who use the capital's many communal entrances as free accommodation addresses to make fraudulent applications for credit and benefits. They use the anonymity beloved of most Londoners to slip through front doors unnoticed and pick up their spoils, as I know all too well.

In the criminal world it's known as a dead- letter address, but it's a type of identity theft that takes many forms and strikes anywhere.

And it's on the increase.

Since our article was published on 6 November, Experian, the country's largest credit- reference agency, has brought out new guidelines on how to avoid becoming a victim.

Identity theft can occur wherever your personal details can be found - even in your dustbin.

Experian says this discarded information is of particular value to the thieves as it can be used to order goods over the telephone. The company suggests you destroy almost every piece of financial paper you receive, even envelopes with your name and address on, which all seems paranoid. "Not at all," says Experian's James Jones. "It's the only way to be sure you don't end up on the receiving end of such a fraud yourself."

Account fraud in this country is a business worth more than pounds 400 million a year.

So-called skimming, where the details are taken from the card's magnetic strip, is the most common type - as the Evening Standard reported on 26 November 2002, London's shops and restaurants account for about a third of the pounds 160 million total.

Stolen cards account for around pounds 140 million and the next most serious fraud, costing about pounds 96 million a year, is achieved without the thief even having to see your card.

Jones changed his own behaviour as a result of one of his company's surveys, which showed how much personal information is thrown away. "Would-be fraud-sters can collect just about everything they need to steal your identity. People throw away credit-card statements, old cheque books and other personal items without thinking. Like many people, I used to fill up my car with petrol and simply throw the debit slip into the bin. Now I don't. It makes life far too easy for thieves."

The thieves use the information on these discarded slips to make what are called non-card-present transactions to order goods and services. Some retailers ask for extra information of the type that can only be given if the card is in your hand, but few do.

Cardwatch fights card fraud on behalf of the banks, and the industry is working on ways to stamp out the two main kinds of fraud. In the meantime, the organisation's Jemma Smith advises extreme caution. "We're moving to a new way of locking a card's information that can't be easily copied. That won't start coming in until next year, but when it finally does we're concerned that identity theft will become the next outlet for criminals."

When you apply for credit, the lender checks with a credit- reference agency that the applicant is genuine. The credit agencies are aware of the many methods used by identity stealers and prevent a large percentage of bogus applications. But the methods used by the thieves are constantly evolving. If you want to help avoid the problem, the credit-agencies have this advice if you have been a victim of identity theft.

First, act quickly. Call the organisation that issued the card and the police. As extra security, get in touch with the Cifas Protective Registration Service. For a small fee it will put a warning on all credit reports held by checking agencies to alert them to be extra careful in checking applications in your name.

Cardwatch's Smith says even junk mail can bring problems and advises throwing out any unsolicited credit card applications. As the thieves become more sophisticated, it seems so must we. The best protection against losing your identity to someone else may be to invest in a small, domestic shredder.

Contacts Experian guide: 0870 241 4297 Cifas: 0870 010 2091 Mailing Preference Service: 020 7291 3310; Advice on sending information over the internet can be found at www.cardwatch.org.uk

Stop thief!

. Rip up credit- or debit-card slips and discard them where they can't be retrieved.

Shredding is the best method.

. Unless keeping for reference, destroy chequebook stubs rather than just throw them away.

. Fraudsters have been known to apply for credit in someone else's name and then redirect your mail. If your mail isn't arriving, find out if its been stopped at the post office.

. If you move, get a copy of your credit report so you know which lenders to tell that you've moved.

. Tell the Mailing Preference Service to take your name and previous address off the direct-mailing list in the UK so that direct- mail companies stop sending unsolicited items with your name on them.

Copyright 2002
Provided by ProQuest Information and Learning Company. All rights Reserved.