How to protect yourself against identity fraud
Official figures indicate that identity (ID) fraud is on the rise. Between January and June 2024, over 214,000 cases were referred to the Cifas National Fraud Database (NFD), which marks a 15% increase from the same period last year. With ID fraud now being the most commonly reported type of fraud, let's delve into the new figures and provide tips on protecting yourself.
What is ID theft?
Identity theft occurs when someone's personal information is stolen, which can happen in various ways. For instance, a criminal might sift through your mail to find important documents or purchase your details on the dark web following a data breach. The stolen information is then used to fraudulently obtain goods or services in your name, such as taking out a phone contract or opening a bank account.
ID theft on the increase
Identity theft is on the increase, as is ‘facility takeover’, where a fraudster takes over your account. This happens as a result of phishing emails and texts that contain malicious links. When you click on the link, you allow malicious software into your system, enabling the criminal to take over your account.
Fraudster figures
In the first half of 2024, over 37,000 cases of ‘facility takeover’ were reported to the National Fraud Database, an increase of 99% compared to the same period last year. Figures show that 36% of cases occurred on online retail accounts, and 40% were in the telecoms sector.
Action Fraud is warning savers to remain vigilant and safeguard their savings and investments from fraudsters attempting to deceive individuals into parting with their life savings. New data reveals that £17.7 million was lost to pension fraud last year. Action Fraud is also cautioning students and those returning to university to be mindful of the top types of fraud affecting young people, as new data shows that almost 69,000 reports were received from individuals aged 11 to 29, resulting in a total loss of £143.7 million in 2023. Other figures reveal that over 32 million phishing emails have been reported to the Suspicious Email Reporting Service (SERS), with more than a third reported last year.
10 Tips on how to avoid ID theft
Please follow these tips to help avoid falling victim to identity theft:
- Never share your account, personal, or payment information in response to unsolicited calls, emails, or texts.
- Always create strong passwords and try not to use the same one for every account or website you log into. (Try password managers, such as Google Password or Apple iCloud Keychain, which is a program that looks after your passwords and can create strong, unguessable passwords.)
- Antivirus software is ideal to help protect your systems and devices.
- Avoid downloading suspicious apps – it’s best to always check reviews.
- Keep your social media profiles private and never post images showing sensitive information, such as your car number plate or home address.
- Don’t accept invitations from people you don’t know on social media sites.
- It's best to not use public wi-fi networks to access sensitive sites or apps, such as mobile banking
- Check your credit file to see if any new accounts have been opened in your name
- Always let your bank or credit card company know if you don’t receive a bank or credit card statement or card that you are expecting in the post.
- If you move house, make sure your mail is redirected by Royal Mail for at least a year.
What to do if you’re a victim of fraud
Contact your bank or credit card company and, if advised, stop on all relevant cards. You could also call the local police on the non-emergency number 101, and report the incident to Action Fraud. (Please note, Action Fraud is the national reporting centre for fraud and cybercrime, which collects reports about fraud on behalf of the police.)
Our business is your protection
Taking out a cyber insurance policy, will provide you with cover, help and assistance should you fall victim to cyberattack or identity theft. It can provide welcome reassurance and practical assistance at what can be a very worrying time. To find out more, please call us on 01992 703 000 or email insurance@mcdonaghs.co.uk