What to know about identity theft

Identity theft in the UK is a serious crime and can be debilitating for its victims. Not to mention, fixing the problems afterward can be stressful and costly. Identity fraud is also showing no signs of waning. Cases across the UK increased by 22% in 2022 alone. It's also one of the most common motivations for data hacking, accounting for 63% of all cases.¹

This article includes tips, suggestions, and general information. We recommend that you always do your own research and consider getting independent tax, financial, and legal advice before making any important decision.

Understanding what identity theft is and how to recognise it is crucial in protecting your personal information. This article defines identity theft and includes tips on prevention and what to do if it happens to you.

What is identity theft?

Identity theft occurs when someone steals an individual's personal information — including their name, address, national insurance number, or bank details — to commit fraud, typically for financial gain.

Thieves use stolen information to commit various forms of identity theft including:

• Financial identity theft. This is using another person's information to access their bank account or to apply for loans or new credit cards, leaving the victim in deep financial trouble.
• Medical identity theft. This involves using another person's details to fraudulently receive medical services or prescriptions.
• Criminal identity theft. This occurs when a person arrested for a crime uses another person's identity.

Common methods of identity theft

Many people have had their identities or personal information stolen by these common techniques:

• Phishing. Posing as a reputable person from a company or government agency, scammers set up fake websites, send dodgy emails and texts, and even call individuals to trick them into providing sensitive personal, financial, or medical information.
• Performing data breaches. Hackers gain access to large government or corporate databases of personal information.
• Stealing physical documents. Thieves can take another person's information from documents such as bank statements or passports.

Other techniques include skimming card details and impersonating individuals online.

Recognising the signs of identity theft

Spotting early signs of identity theft can be key to reducing the damage. Here are some common indicators that could mean your identity has been stolen:

• Unexplained transactions or withdrawals from bank accounts
• Missing bills or other documents sent via post
• Unrecognised invoices or bills
• Notifications from financial companies, including banks, about loans or credit card applications that weren’t made
• A sudden drop in credit score

Checking bank statements and credit reports frequently is essential. A person should act immediately if any of these signs appear.

Safeguarding personal information

Keeping personal information secure plays a key role in identity theft protection. Here are some tips on how to protect your personal details:

Secure your address

It's important to ensure that banks, government institutions, and service providers always have up-to-date physical and postal addresses. Using a lockable post box or signing up to receive important documents digitally help reduce the risk of interception.

Secure your bank accounts

Bank account information can be better secured by using strong, unique passwords that aren’t easily guessable and by enabling two-factor authentication.

Individuals should regularly check their bank account activity for any suspicious transactions. And it's important to read bank communications to know about common scams used by identity thieves to commit fraudulent activity, including credit card fraud.

Secure your phone

Modern mobile phones, or smartphones, contain a large amount of personal information, making them a prized asset for identity criminals. Taking measures to secure your phone is vitally important to prevent becoming a victim of stolen identity.

Mobile phone owners are encouraged to:

• Use strong passwords or biometric locks such as facial recognition, if supported.
• Avoid using public Wi-Fi to access sensitive activities, such as internet banking or online shopping.
• Avoid using apps that aren’t reputable and safe.

Secure your computer

Laptops and computers also contain a wealth of personal information. Using antivirus software and firewalls can help protect against malware and hacking attempts. Keeping operating systems and applications up to date also helps limit the vulnerabilities that can be exploited.

It's important to be wary of clicking on suspicious-looking links on the web or downloading attachments included in unsolicited emails to help make sure your computer is secure.

Secure your property

Along with taking steps to safeguard digital devices, protecting physical property is an essential step in ID theft prevention.

This involves ensuring that sensitive documents like passports, birth certificates, and financial statements are kept in a secure place, such as a locked drawer or safe. It's also important to shred or securely dispose of any documents containing personal information.

What to do if you are a victim of identity theft

If you suspect that you are a victim of identity theft fraud, then act quickly to reduce the damage. Here's how:

Contact financial institutions

Immediately contact banks, credit card companies, and other financial service providers to freeze accounts, helping to ensure that further unauthorised transactions are blocked.

Change all passwords, making sure they're not easily guessable. And place a fraud alert on credit reports.

Report identity theft to authorities

Report identity theft to the police and to Action Fraud, the UK's national reporting centre for fraud and cybercrime. This creates an official record that can help track investigations and clear up the situation with financial institutions.

Being a victim of identity theft can have far-reaching emotional, mental, and financial consequences. Victims are encouraged to seek support from Victim Support or Citizens Advice for help in dealing with identity theft.