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Identity Theft Prevention

With credit card and bank fraud on the increase, we need to be alert to the scams perpetrated by modern-day Fagins, particularly in an era of virtual pickpockets.

There's no need to get paranoid: here are some tips and wrinkles for reducing the chances of it ever happening to you.

According to the annual Association for Payment Clearing Services (APACS) survey, credit card fraud in the UK amounted to just over £400m in 2003. That said, the chances of any of us becoming a victim are still low: fraudulent transactions accounted for just 0.13 per cent of total UK card transactions during the year.

Nonetheless, certain types of financial fraud are on the increase. Identity theft grew by 45 per cent in 2003 while fraud at cash machines went up by a third. Cardholder-not-present (CNP) fraud - which involves Web, phone and mail order transactions - is now the biggest fraud category. This is partly because when credit cards were first introduced no one ever thought they would be used in situations where neither the card nor the cardholder are present.

Here are eight suggestions for repelling virtual Visa terrorists, as well as the more low-tech criminal types who could be ferreting through your wheelie bin as we speak:

Always shred or burn your financial receipts and statements once you have finished with them.
Retain your receipts and check them against statements. If you spot anything untoward, get straight onto your bank or credit card company. Pay particular attention to checking any online-only accounts you may have. Research shows that we tend to check these less regularly than our hard-copy accounts.
Never disclose your personal or financial details to anybody who cold calls or emails you.
If you move, redirect mail immediately. The new occupants will probably just bin any bank and credit card statements, leaving you vulnerable.
Check your credit report from time to time to make sure that nobody has opened an account in your name.
If you are expecting a card or chequebook and it hasn't turned up, report it to the provider in question.
Watch out for anybody standing too close and using a mobile phone while you are using a cash machine. Mobiles can be used to record PIN numbers remotely.
Resist irresistible offers, especially if they seem to involve helping people get funds out of African countries, or offer foolproof methods for winning Canadian lotteries.


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