ID fraud cost of just cutting up cards

Millions of Britons are unnecessarily putting themselves at risk from identity fraud, new research reveals.

Part of the problem lies in the fact that many people believe that just by hiding a credit card away or cutting it up means it cannot be used.

However, the truth is, the only way to stop a credit card being used is to cancel it with your provider. If people do not do this, they are at risk of fraudsters racking up debts on their behalf, warns the report's authors, MyCallcredit.

Alison Nicholson, director at MyCallcredit, said: "Too many people, when they decide to stop using a credit card, either stick it in a drawer or cut it up but that’s not enough.

"Unless you tell the card company you want to cancel it, the card remains live. If a fraudster gets hold of the details they can rack up bills without your knowledge."

She added: "Each credit cardholder has an average 2.3 cards.

"If just one in ten of those cardholders has a card they don’t use that’s three million people who are needlessly increasing their chance of becoming a victim of ID fraud."

The ID fraud alert provider has advised that now is as good a time as any to get one's credit cards in order, and cancel any they do not use anymore.

The benefits of protecting oneself against ID fraud are clear – in extreme cases, ID fraud can cost £8,000 and take 200 man-hours to clear up.

Ms Nicholson said: "ID fraud is one of the fastest growing types of fraud in the UK but people can protect themselves from the inconvenience and cost of being a victim by simple administration of their finances."