Identity theft is a growing concern in the UK, posing serious risks to individuals’ financial and personal security. According to a 2023 FICO report, approximately 4.3% of British consumers reported that their identity had been stolen to open financial accounts.
To help prevent identity theft, this guide highlights the different types of threats it can pose and provides helpful information to keep you and your finances safe.
Types of identity theft
Identity theft can occur in various forms, each with its unique methods and consequences. Understanding these different types is important for protecting yourself against them.
Physical theft
Physical theft is one of the most straightforward forms of identity theft. It involves someone stealing your personal items, such as your wallet, purse, or mail, which could contain important information like your ID, credit or debit cards. If someone has stolen this information, they could then use it to impersonate you and access your financial accounts or open new ones in your name.
Cold-calling
Cold-calling involves scammers phoning you and pretending to be from a reputable organisation, such as your bank or a government agency. They might claim there’s an issue with your account or that you’ve won a prize.
The goal is to trick you into providing personal information, such as your bank details or National Insurance number. These details can then be used to commit fraud or steal your identity.
Text scams
Text scams are another method scammers use to deceive you. A common text scam involves receiving a message about a failed parcel delivery, instructing you to enter your card details via a link in order to rearrange delivery.
These scams are very clever and can be difficult to spot, especially if you are receiving a delivery that day.
Visit the National Cyber Security Centre website for tips on how to identify and report text scams.
Online phishing
With the rise of AI (Artificial Intelligence), online phishing scams have become more sophisticated than ever. One example is Debt Management phishing, where scammers pretend to be debt collectors.
Phishing is a common form of identity theft that takes place online. Scammers send fraudulent emails or messages that appear to be from legitimate sources, such as banks or online retailers.
These messages often contain links to fake websites that look genuine, where you’re asked to enter sensitive information like passwords or credit card numbers. Once you provide this information, scammers can use it to steal your identity.
Hacking
Hacking involves cybercriminals gaining unauthorised access to your personal information through your computer, smartphone, or other internet-connected devices. They might use malware, which is malicious software, to infiltrate your devices and steal your personal data. This information can then be used for various fraudulent activities, including accessing your bank accounts or making purchases in your name.
Data breach
A data breach occurs when hackers infiltrate a company’s database and steal sensitive information, such as customer names, addresses, and financial details. If your information is part of the breach, it can be sold on the dark web and used by criminals to commit identity theft. Data breaches can affect millions of people at once, making them particularly dangerous.
How can identity theft affect you?
The impact of identity theft can be severe and long-lasting, and as a result, your credit report could be significantly impacted. It can affect various aspects of your life, from your finances to your mental well-being.
Am I responsible for identity theft debt?
If you’re a victim of identity theft, you generally are not responsible for any debt incurred by the thief. However, proving that you didn’t authorise the fraudulent transactions can be a lengthy and stressful process. You will need to report the theft to your bank or credit card company and provide evidence to support your claim. It’s essential to act quickly to minimise the damage and prevent further fraudulent activities.
If you think you have been affected, it’s important you raise this with Action Fraud as soon as possible.
Protect yourself: How to avoid identity theft
While identity theft can be alarming, there are several steps you can take to protect yourself and minimise the risk of becoming a victim.
Secure your devices and online accounts: Ensure that your computer, smartphone, and other devices have up-to-date antivirus software installed. Use strong, unique passwords for your online accounts, and enable two-factor authentication where possible. This adds an extra layer of security by requiring a second form of verification, such as a code sent to your phone, in addition to your password.
Be cautious with personal information: Be mindful of the personal information you share, both online and offline. Avoid posting sensitive details on social media, and be wary of unsolicited requests for your information, whether they come via email, phone, or in person. Shred any documents containing personal information before disposing of them to prevent dumpster divers from accessing your data.
Monitor your bank accounts and credit reports: Regularly check your bank statements and credit reports for any unusual activity. If you notice any transactions you don’t recognise, report them to your bank immediately. You can also set up alerts with your bank to notify you of any significant withdrawals or purchases. Monitoring your credit report can help you spot any new accounts opened in your name that you didn’t authorise.
Stay informed about phishing scams: Phishing scams are constantly evolving, so it’s important to stay informed about the latest tactics scammers use. Be sceptical of any unsolicited emails or messages asking for personal information, even if they appear to be from a trusted source. Always verify the sender’s identity before clicking on any links or downloading attachments.
Protect your mail: Keep an eye on your mail and ensure that sensitive documents, such as bank statements and utility bills, are delivered securely. Consider using a locked mailbox or a mail-holding service if you’re going to be away from home for an extended period. If you suspect your mail has been stolen, report it to the Royal Mail and the relevant organisations immediately.
By following these tips and staying vigilant, you can significantly reduce the risk of falling victim to identity theft. Remember, protecting your personal information is an ongoing process that requires regular attention and proactive measures.
Understanding the various forms of identity theft and taking steps to safeguard your information can help you stay one step ahead of the criminals and protect your financial and personal well-being.
