Identity fraud cases up by nearly 50% in the UK, according to latest Experian figures, and the majority of cases are discovered only when people check their credit reports.
Experian, a leading UK research company, has released new figures that show an increase in the number of new cases of identity fraud being reported.
According to analysis from the global information services company, January to June 2008 saw over 3,700 identity fraud victims seek help from the company's Victims of Fraud team. This represents a 46% increase compared to the 2,570 cases reported during the same period in 2007.
Of the cases reported to the company during the first of half of 2008, nearly 60% of people discovered that their identity had been stolen when they checked their credit report. Furthermore, the majority of these people were alerted to the situation when they saw their credit report for free using CreditExpert.co.uk, the company's fraud protection and credit monitoring service.
The company's analysis suggests that today's savvy consumers are not only increasingly managing their credit information online, but are also using these services to alert them to suspicious entries on their report that could suggest fraudulent activity has taken place.
Jim Hodgkins, Managing Director of CreditExpert.co.uk, commented: “Our figures show that the risk of becoming a victim of ID fraud is still high, but it's also clear that consumers are becoming more vigilant. It's vital for people to keep a close eye on their finances and checking their online credit report is an excellent way to alert them to any irregular activities, such as a fraudulent loan application. Taking this simple step can help ensure that your identity remains your own.”
Analysis of data from the cases reported to the company in the first half of 2008 also reveals the most common forms of ID fraud. Forwarding address fraud - where a fraudster redirects the victim's post to a drop address that he/she then visits to collect mail - was the most common form of fraud; 37% of cases were victims of this method, compared to 32% in 2007. Present address fraud, the most common method in 2007 (39%), dropped to 30% in 2008.
With its detailed case data, the company's Victims of Fraud team is able to produce accurate identity fraud models and, as a result, Experian can determine with greater accuracy the types of people most likely to fall victim to identity fraud.
Those renting - either privately or from local authorities - are at high risk of identity fraud. People living in rented accommodation are more likely to share mailboxes and tend to move house more frequently than homeowners. This provides fraudsters with more of an opportunity to misuse credit histories that have not been updated.
