Overview of identity theft  

You are a victim of identity theft if someone pretends to be you in order to steal money or gain some other sort of benefit.

Offences

It is an offence to possess, control and intend to use false identity documents – such as passports, immigration documents and driving licences – or to do the same with a genuine document that belongs to someone else. The offence of fraud, meanwhile, can be committed by: making a false representation; failing to disclose information, and by abuse of position. It is an offence under the fraud laws to obtain services dishonestly, possess equipment to commit frauds, and make or supply articles for use in frauds.

Uses of a stolen identity

Once a fraudster has enough information about you s/he could use it to:

• Open a bank account or apply for a credit card or some other financial service in your name.
• Use your credit/debit card details to buy goods or services.
• Take out a loan, apply for a passport or a mobile phone contract in your name.
• Apply for state benefits, a driving licence or register a vehicle in your name.

Ways you could become a victim of identity theft

There are numerous ways fraudsters can steal your identity and use it to commit crime. Some of the tell-tale signs that someone could be passing themselves off as you for their own financial gain include:

• ID documents like your driving licence or passport going missing.
• You receive bills, invoices or receipts addressed to you for goods or services you haven’t ordered.
• Unusual details or charges appear on your bank statement or credit card bill.
• Your mail is not reaching you or you start getting mail coming to your address in a strange name.
• When applying for a state benefit you are told you are already claiming.
• Debt collectors or solicitors contact you demanding repayment of debts that aren’t yours.
• You think you have a good credit history but you are inexplicably turned down for loans or new credit cards.
• Entries on your personal credit file start appearing from organisations you don’t recognise.
• A mobile-phone contract has been set up in your name without you knowing about it.

Minimising the risk of identity theft

There are numerous things you can do to minimise the risk of having your identity stolen. These include:

1. When paying by credit or debit card in a restaurant, etc. don’t let your card out of your sight in case the outlet has a skimming machine which allows the data on your card's magnetic stripe to be electronically copied onto another card.
2. Never give out your credit card details in an email or over the phone unless you made the call.
3. Never write down your PIN number - memorise it instead. Don’t choose a PIN which can be easily guessed. Have a different PIN for every card. When inputting your PIN, shield the transaction with your hand.
4. Have as few credit cards at the same time as possible. Sign new cards as soon as they arrive and cut up expired cards into tiny pieces.
5. Shred card receipts and bank statements before throwing them away.
6. Check your bank account and statements regularly and report anything unusual straight away to the bank.
7. If you go out just take one credit or debit card with you and never carry them in the same bag as important documents like passport, birth certificate, drivers licence or national insurance number. Never leave them unattended.
8. Don’t open unsolicited e-mails and ignore any emails asking you to provide personal or financial information.
9. Make sure your computer is protected with the latest anti-spyware and anti-virus software; install a firewall on your PC and ensure your operating system is updated regularly.
10. If you’ve ordered something online and someone phones you saying, e.g., that there has been a “computer glitch” and asks you to verify your credit card details over the phone refuse to do so – no reputable seller would ask you to do this.

What to do if you are the victim of identity theft 

If any important mail is lost or stolen you should notify the Royal Mail. Lost or stolen passports should be reported to the Identity and Passport Service and the Driver, and Vehicle Licensing Agency should be told if your driving licence has been lost, stolen or destroyed.

Report lost or stolen cards or suspected fraudulent use of your card to your card company straight away. If you are the victim of plastic card, cheque or online banking fraud you don’t need to tell the police – once you’ve reported the matter to the bank or card company it’s up to them to report the matter to the relevant police force. 

If the card is still in your possession, you shouldn’t have to pay for anything bought on it without your knowledge (depending on the terms and conditions of your account). If your card is lost or stolen and someone else uses it before you tell your card company, you will usually only be liable for losses up to £50 (unless you’ve kept your PIN with your cards or something in which case you may have to pay the whole lot).

If you’re worried about the effect of the identity theft on your credit file you can check its status by contacting a credit reference agency such as CallCredit, Equifax or Experian.