Ten Ways To Avoid Becoming A Victim Of ID Fraud

by Rachel Wait on 09 December 2008  |  33 comments
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Identity fraud is a growing problem in the UK, and all of us are in danger of becoming the next target. Here’s how to prevent it from happening to you….

The Christmas lights are sparkling all the way down Oxford Street. It’s jam-packed, and you’ve spent the last five hours fighting your way through the crowds. You’re tired, fed up, can’t wait to get home. But at least you’ve nearly finished your Christmas shopping. Hurrah!

You queue to pay for the final items, imagining the steaming cuppa and mince pie you’ll soon have in front of you. You hand over your credit card, wait to enter your PIN, and…

Nothing happens. The machine flashes up to say the transaction hasn’t gone through and you’re told you’ve gone over your credit limit.

You’re baffled. How is that possible? You haven’t spent that much. It must be a mistake.

But it’s not. Instead, someone else, pretending to be you, has used your card to rack up a hefty bill of items you didn’t ask for. And now you’ve become a victim of identity fraud.

The facts

Identity fraud is one of Britain’s fastest-growing crimes. Fraudsters have become experts at inventing more devious ways to get hold of your personal details and take off with your hard-earned cash.

What’s more, the rapid rise of social networking has exacerbated the problem. Increasing numbers of people are unwittingly exposing themselves to identity theft by revealing too many details on these sites. And even the most trivial pieces of information can be extremely useful to a fraudster.

It’s not just the financial problems you have to worry about either. Having your identity stolen can leave you feeling violated, damage your credit record, and take months to clear up.

Preventative measures

But don’t despair. Here are ten precautions you can take to protect yourself from becoming a victim:

1) Keep you PIN private

Don’t tell anyone your PIN and don't write it down. Don’t use the same PIN for each card and don’t make your PIN something obvious like your birthday or 1234.

2) Shield you PIN

When using a cash machine or Chip & Pin device in a shop, use your spare hand to shield your PIN number from prying eyes and hidden cameras.

3) Shred unwanted documents

Carefully dispose of all documents which show your name and address – preferably by shredding them. This includes bank statements, letters from your doctor and utility bills. Receipts can also be valuable to fraudsters so shred them too.

4) Examine your bank and credit statements carefully

Check to see whether there are any unusual transactions on any of your statements. Tell your bank immediately if you spot anything.

5) Check your credit record

This lists all credit commitments and recent applications for credit, so you can instantly see whether someone has been trying to use your ID. That way you can put a stop to problems before they develop. You can sign up to a free 30 day trial from CreditExpert via The Fool.

6) Be aware of ‘phishing’ emails

A common method used by fraudsters is to email you pretending to be your bank and ask you for your bank details. But remember, a bank will never ask for your personal details, so don’t reply to emails and don’t click on any links.

7) Redirect all post to new address

If you are moving house, ensure you ask the Post Office to redirect your mail (preferably for a year). Update all banks and utility firms with your new address immediately.

From my own experience, I think it’s also worth double checking your bank has logged the correct address. When I moved house, my bank failed to update my details properly, and kept two addresses on file.

This meant when I was sent a new debit card, it went to my old address, and anyone could have helped themselves to my bank details. (Ironically, I was only sent a new card because someone had been illegally using my account.)

8) Be careful what you say on the phone

Only divulge your card details in a telephone transaction when you have instigated the call and you are familiar with the company.

9) Don’t let your cards out of your sight

I know it can be tempting to do this in restaurants and bars, but don’t. Anyone looking to make a copy of your card details can do so without you even realising.

10) Be careful when using social networking sites

Don’t reveal too much information about yourself on sites such as Facebook and MySpace. This includes passwords and key dates that could allow fraudsters to gain access to your bank account. For further tips on this, you can read this excellent article by Szu Ping Chan.

And don’t forget, if you are planning to do your Christmas shopping online this year, you can check out how to stay safe by reading Twelve Tips To Keep You Safe Online!

For further information on identity fraud, take a look at the Home Office website which gives more practical advice on how to prevent and combat it. You can also share any of your own experiences with fellow Fools by using the comments box below.

More: Identity Fraud: Who is Most At Risk | How To Stop Identity And Card Fraud

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