ID fraud hits consumers for £1.3bn

ID fraud costs British consumers £1.3 billion a year, a new report has found.

Moreover, an estimated one in four UK adults has been affected by identity theft, consumer watchdog Which? has found.

A survey by the organisation 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.

Which? advises consumers to take some simple steps to try and head-off fraudsters.

It advises consumers:
- not to use their mother's maiden name or place of birth as a security password;
- to regularly check credit reports for suspect applications;
- to make sure changes of address are passed on to banks and building societies;
- to shred or otherwise destroy post before putting it in the bin;
- to never use the same password for more than one account;
- and not to carry details of home address with bank cards.

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