Identity theft growing

Thursday, 3 March 2005 1:16 PM

New research from consumer group Which? suggests that an estimated one in four adults have been affected by identity theft.

It found that the annual cost of ID theft in Britain has soared to £1.3 billion a year. The survey revealed that around one in ten people in Britain have been a victim of identity fraud and another 15 per cent of people know someone who has had their identity stolen.

Which? editor Malcolm Coles explained that a researcher had been able to steal his identity easily, obtaining his birth certificate, his mother's maiden name, place of birth, mortgage value, the location of his flat, medical data and details of his shopping habits.

Mr Coles added that an attempt to access his credit card account failed only because he had not informed his bank when he moved.

"Even a simple step taken by industry to stop accepting mother's maiden name and place of birth as default passwords would be a good start, as it's too easy for fraudsters to get hold of this basic information, which is where the process of stealing an identify begins," he said.

ID thieves gain access to bank accounts to steal money, run up bills, launder money or carry out benefit fraud.

Payments association Apacs is expected to publish figures next week that confirm soaring levels of identity fraud in Britain.

The British Security Industry Association said that the research showed why it is so important that the businesses pay careful attention to the shredding of documents.

Simon Pearce, chairman of the BSIA Information Destruction section, said: "ID theft is very upsetting for individuals, but it can carry even more severe implications for the reputation of businesses.

"Shredding is a more complex process than most people realise. It's important that documents are shredded to a size at which details can't still be taken from them. Also, it's imperative that those individuals employed to shred corporate waste have been properly vetted to ensure that they don't have a criminal background and can be trusted with what is a crucial part of any company's security procedure."

Tags: