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ID Fraud
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Article
You’re nicked
Someone might have stolen your identity, and could be running up massive debts in your name without you knowing it. Andrew Stuart looks at the worrying growth of ID fraud |
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The Fish Inn in the Lakeland town of Buttermere was a popular place for anglers to stay. Fly fishermen, lured by the trout, swarmed to the pub, but rated the top catch the landlord’s daughter, Mary Robinson. In an area of great natural beauty, unmarried Mary stood out as a top attraction - an oval face, full eyes and gorgeous red lips, with the additional bonus of an achingly well-formed chest. In short, the embodiment of every drinker’s fantasy barmaid. |
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But the lusting anglers were disappointed after Colonel Alexander Hope came to stay at the Fish Inn. After a whirlwind romance, Hope, MP for Linlithgow and brother of the Earl of Hopetoun, married Mary. The national papers even reported the both joyful and sad news, but within a month the London ‘Sun’ newspaper had discovered the truth. The real Colonel Hope was abroad at the time of the wedding and Mary had married John Hatfield, a bankrupt with a wife in Tiverton, Devon. Having borrowed cash from Lakeland locals, Hatfield fled and got as far as Swansea before being apprehended by the Old Bill. Days later he was in court in Chester and, after a trial lasting eight hours, was convicted. Bigamy was bad, but the crime of ‘personation’ was far worse. The judge took a very dim view and sentenced Hatfield to death, with the execution following soon after. |
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Mushrooming
The fact that this happened in 1802 may explain the severity of the punishment, but the crime of ‘personation’, or ID theft and fraud, can still carry a stiff sentence. In the UK, if you steal someone’s identity in order to vote, you can get up to two years in jail, with an unlimited fine. Pretty severe for what many would consider a very minor infringement of the law since so few can be bothered to vote. What is increasingly worrying for people is ID theft and the fraudulent usage for financial gain, which seems to have mushroomed in recent years. |
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The US treats personation in the commercial world much more severely than for electoral crime. In 1999, the United States Sentencing Commission (USSC) noted a 15-year maximum sentence “for the unauthorised transfer or use of one or more ID means if more than $1,000 aggregate value is obtained during a one-year period”. The tariff increases to 20 years “if the ID crime facilitates certain types of drug crimes and crimes of violence, or for a second conviction”. |
Unfinished sentences
Enough to put most people off, one would think. But the USSC reported that the average sentence passed for ID fraud was actually just 15 months. “And in the UK, those who get caught and convicted have little reason to fear, since the average sentence is around nine months, with good behaviour, in an open prison,” says financial adviser Martin Cunningham. |
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The level of ID crimes, in terms of numbers of victims, plus the financial value, are both enormous and growing all the time. It is believed that criminals in the UK got their hands on at least £1.3bn by forging identities, according to a 2002 study by the Cabinet Office. BBC TV’s Money Programme reported that identity theft is the UK’s fastest-growing white collar crime, increasing at nearly 500 per cent a year. |
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APACS, the automatic clearing system owned by the big banks and credit card providers, says that £1.6 million of credit card fraud takes place each day, with a fraudulent transaction occurring every eight seconds. And Which? has said that one-in-four adults in the UK have either been subject to ID fraud, or know someone who has. |
Hijack
The scale of fraud varies, from someone having a one-off case of a purchase on their credit card, to others having their identity comprehensively stolen, with 20-30 credit cards and loans taken out in their names. According to CIFAS, the fraud prevention service set up by the UK’s major lenders, in the former case, things can be sorted out relatively painlessly, providing the victim spots the theft, with the card provider probably picking up the bill. “In cases where a total hijack has occurred, it may take the victim as long as 400 hours and cost up to £8,000 before things are back to normal,” says a CIFAS spokesperson.
With the prevention being better than the cure, what can you do to protect yourself from ID fraud? |
“For a start, guard your cards, and don’t let them out of your sight when you’re making a transaction,” says Mark Bowerman of APACS. “If you key in a PIN make sure no one is looking over your shoulder, and beware of miniature cameras.”
If you have numerous cards, make sure you use different PIN numbers and keep them to yourself, is the experts’ tip. And don’t choose an obvious number like your date of birth. |
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| Better shredder
“You should shred all documents, such as statements and credit card receipts. And don’t forget to rip up any credit card application forms your receive and don’t use,” adds Bowerman. These forms often have so much prepopulated information printed on them, life is made very easy for the potential fraudster.
Keeping personal documents, plastic cards and chequebooks in a safe place, as well as other valuable documents such as passport, birth certificate, driving licence and financial statements, should be an obvious security measure. |
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“Don’t share personal information unless you are entirely confident you know who you are dealing with,” says Bowerman. “Be particularly cautious if you are cold-called by someone claiming to be from your bank or the police. Your bank would only ever ask for specific characters from your password, not the whole password.”
And be extremely wary of emails requesting information, such as birthdate, mother’s maiden name and so on. |
Are you a victim?
It pays to check whether you have been a victim of ID theft and fraud. “Keep an eye open for items on your credit card or bank statement that you haven’t purchased or ordered,” says Bowerman.
“Also be wary if your regular bank or credit card statements fail to appear, or if you notice some of your mail is missing.
“Other tell-tale signs are a phone call or letter saying you have been approved or denied credit for accounts you know nothing about, or if a debt collection agency contacts you about goods you haven’t ordered.” |
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If you have been subject to ID fraud, contact the bank or financial institution concerned straightaway and keep a record of your communications. Report it to the police and ask for a Crime Reference Number, and contact the credit reference agencies. (See list at the end of this article) in order to get incorrect information removed.
“Contact CIFAS on 0870 010 2091,” adds Bowerman, “to have your name and address earmarked, so that anyone in the future applying for something using your name and address will automatically be double-checked.”
The bottom line is that today, with so many fly characters around, it pays to keep your wits about you. You needn’t live in complete paranoia, but a healthy degree of suspicion could pay handsomely. |
ID fraud - self-help tips
• Get a shredder and shred all personal documents before disposal
• If you cut up a card, or stop using it, inform the provider
• If you have an unwanted credit facility, write to the lender to cancel it
• Check your credit file regularly
• Don’t let your credit card out of your sight
• Make sure no one can see your PIN. |
10 worst postcodes for ID theft
Londoners are at most risk of having their identity stolen, if they live in the following postcodes: |
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WC - London West Central
EC - London East Central
N - London North
E - London East
SE - London South East
NW - London North West
IG - Ilford
EN - Enfield
W - London West
HA - Harrow |
Credit reference agencies
To see a copy of your personal credit files, you can contact any of the following credit agencies. Fees vary.
• Experian 0870 241 6212, experian.co.uk
• Equifax 0870 514 3700, equifax.co.uk
• Callcredit 0870 060 1414, callcredit.plc.uk
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