Fight ID theft with common sense
By Damian Clarkson     10th October 2007

A third of UK households are still throwing all the information a fraudster needs to steal their identity in the bin, new research has found.

And businesses are being just as careless with sensitive information, with 40% risking identities by throwing away information on their customers.

In a bid to tackle this crime and raise awareness, the government has today kicked off National Identity Fraud Protection Week.

So are you at risk and how can you protect yourself? Certainly buying a top anti virus software product for your computer plus a paper shredder for important documents are good ideas, but the best way to protect yourself from ID theft is through common sense and caution (best of all, they won’t cost you a penny).

Personal details are one of our most valuable possessions, yet we are constantly leaving them unprotected and vulnerable to unsavoury types, who are making a killing off of it - the last official estimate from the Home Office puts the cost of identity fraud at £1.7 billion.

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Protecting your virtual details
One of the reasons why ID theft is growing is down to the simple fact that we are advertising so much more of our information. Whether it’s online shopping or social networking sites, we are posting more than enough information to leave us vulnerable.

The best place to start protecting yourself is ensuring your gateway to the virtual world, your computer, is adequately protected. Install anti virus software, making sure it includes a firewall, which essentially shields your personal files or details from prying eyes when online.

You can download this software for free online, but you can buy more popular products like Norton or McAfee from any electronics store for around £40 if you prefer. Once you’ve done this, avoid entering your details on any computer other than your own.

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Beware of Fraudbook, ID theft 2.0
Next up, think carefully about what information you post online. Facebook is a great site for keeping in contact with old friends, but it also gives fraudsters access to loads of personal information, from date of birth to phone numbers (all useful information for ID theft).

A random sample of 200 users in the London Facebook network by anti virus company Sophos found 75% allowed their profiles to be viewed by any other user. With over a million users in London alone, it’s clear fraudsters are being spoilt for choice.

If you’re on Facebook, consider changing your security settings so that only your friends can view your profile, and limit how much information you post. You may also consider 'tweaking’ some of your details – such as your date of birth - so that they won’t be of use to fraudsters. If nothing else it’s a great excuse to make yourself younger.

Finally, check your credit file for accuracy, looking for unauthorised activity- such as accounts which aren’t yours, or credit searches by companies you haven't dealt with. You can arrange to receive your credit file regularly to monitor credit applications made in your name.

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Protecting your physical details
As we mentioned at the start, throwing details in the dustbin is one of the main ways that fraudsters get their hands on your details. One in ten households actually throw away whole credit/debit card numbers with its associated expiry date and owner’s signature.

Invest in a shredder to destroy any receipts, bank statements… anything that you wouldn’t want other people getting their hands on.

Always keep your bank cards in your possession and never let them out of your sight. If you move home, inform all the relevant organisations of your change in address. Consider using a Royal Mail Re-direct for at least a year to make sure all post is forwarded to your new address.

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Choosing ID theft protection
If you follow all of the above advice and still feel vulnerable, you may want to look into buying identity theft protection from your bank or insurer. As the name implies, this covers you in the event of ID theft, covering things like legal bills and providing you access to emergency funds should your accounts be frozen.

Generally this cover costs anything from £45 to £90 a year depending on who you go to, but it’s also possible to get it for free (which we at EveryInvestor think is a far more competitive price). Do this by opening account at Capital One or Barclaycard credit card, which include identity theft assistance as part of their offering.

Alternately, check your existing household insurance policy, as you may already be covered. Failing that, make sure you read the fine print before signing up for a policy, checking for limits on cover, exclusions and whether it offers cover while abroad.

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What to do if you are caught out
If you are a victim of identity theft which involves the use of plastic cards, online banking or cheques, report it directly to the financial institution concerned.

They will then be responsible for undertaking further verification and investigation, and, as appropriate, reporting cases of criminal activity directly to the police where they will be recorded and subsequent investigation considered. It should be noted that this process is applicable to England, Wales and Northern Ireland only.

If the theft does not relate to plastic cards or cheques, then you should report the matter to the relevant organisation in the first instance and, dependent on their advice, to your local police station.

Finally, consider registering with the CIFAS Protective Registration Service. CIFAS Protective Registration may be placed by individuals against their own address when they have good reason to believe it may be used by a fraudster, for example, when a passport has been stolen.

For more information on what action you can take, click here.

Protect your details like any other asset
Identity theft is a growing concern, but as we mentioned at the start, using common sense and caution should help you avoid falling victim to it.

Treat your personal details like you would any other asset you own. You wouldn’t leave your TV out on the pavement, so don’t leave your details lying around either – be it online or in your dustbin.

Article produced by EveryInvestor.co.uk