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How are stolen identities used?

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by Sarah Orrill

30/12/10 in Identity Fraud/Theft |

So an identity thief has your personal details… what next?

Credit card fraud
Credit card fraud is perhaps the most obvious use of your details. The thief can open credit card accounts in your name and very quickly run up huge bills. If the criminal also changes the billing address so that the bills no longer come to you, it may be many months before you know what is happening. The unpaid bills quickly mount up and the debt appears on your credit report, meaning that any further applications for credit or loans made by you are likely to be declined.

Bank / finance fraud
If the thief has sufficient details, he or she can open a bank account in your name and then use cheques and cards issued with the account to buy goods and services. Alternatively, the thief may clone your existing debit card and use it to pay for goods and services or to withdraw cash, quickly draining your account. The criminal could also take out a loan in your name.

Account takeover fraud is another type of bank fraud in which the criminal uses your personal details to change your address and redirect your mail so that they can effectively take over your bank account. In 2009 there was a 16% increase in account takeover when compared with 2008 (CIFAS, February 2010).

Official document fraud
If a criminal is able to apply for and obtain official documents such as a driving licence or passport in your name, using their own photo, the door is open for them to commit a whole range of serious crimes. They could also file fraudulent tax returns using your details and fraudulently apply for Government benefits in your name.  

Phone or utilities fraud
A fraudster could use your details to open a new mobile phone or broadband account. Or they could run up charges on your existing accounts with expensive overseas calls. They could also use your name and bank details to access and pay for other utilities, such as electricity, gas and water.

Other fraud
A criminal who steals your personal details can assume your identity in an endless variety of ways. They could rent a house or access private medical services in your name. They could even get a job using your National Insurance details. If they are caught by the police for committing a crime, they could give your details so that when they don't turn up for court, a warrant is issued in your name and sent to your address.

Resolving the consequences of identity theft can be stressful, time consuming and costly. That's why prevention is better than cure. Identity theft can take many forms, so it's important to be vigilant on many fronts.

Take time to familiarise yourself with our tips to stay safe from identity fraud or why not subscribe to our news feed for regular advice from the team at CPP?

Comments

Darence 17/12/11

An intelligent point of view, well expressed! Thanks!

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