Are you at increased risk of ID theft?

ID theft and fraud have become huge issues over recent months, and the problems relating to ID theft have been highlighted as a result of a number of agencies and companies losing valuable and sensible data.

Many different firms and agencies have admitted to losing personal data belonging to customers over recent months, increasing the chances of millions of people becoming victims of identity theft and fraud.

The Chancellor of the Exchequer, Alistair Darling, had to apologise last year when HM Revenue and Customs lost the bank and personal details of twenty five million people on two discs that went astray.

The Department of Work and Pensions lost hundreds of application forms last year too. Other agencies that have lost personal and sensitive data include banks, building societies, and agencies like the DVLA amongst others.

Even this year a number of data loss incidents have come to light. The bank and personal details of two hundred wealthy investors were found by a driver on a road near to a motorway junction, having fallen from a DHL courier van and gone unnoticed.

The files contained the banking details of investors including three national lottery winners, and the documents had been on their way to the Prudential head offices.

Another incident that has been reported is data loss from the Ministry of Defence, where the applications and details of around 600,000 people have gone missing after a laptop was stolen.

With all of these data loss incidents, and more besides, it is little wonder that so many people are worried about becoming the victim of data loss and fraud.

Even the boss of Barclay’s Bank recently became the victim of fraud after staff at the Barclays credit card division failed to carry out adequate security checks and sent out a card in the boss’s name to a fraudster who was posing as the boss. £10,000 was taken from his account, and had to be refunded by Barclays as a result of the blunder.

Of course, there is little we can do about issues such as these where we put the security of our data and details into other hands, and that security is then breached.

Some MPs have demanded that it be classed a criminal offence if sensitive data is recklessly or persistently lost by firms. However, there are also steps that we can take ourselves to reduce the chances of becoming the victims of ID theft.

When it comes to throwing away documents that have personal details such as bank account details on – such as a bank statement – you should use a shredder to get rid of these. You can get small, desktop shredders at very reasonable prices these days.

What you must never do is simply throw such documents into the trash so that they end up intact and readable. All it takes is for some fraudster to go through your bins – which does happen – and your account and personal details will fall into the wrong hands.

When it comes to using your credit or debit card to make purchases always exercise caution. If you are ordering via phone, don’t give out account and personal details in front of strangers or people you do not know well.

If you are ordering online, always ensure you are using a secure and encrypted site. You should also never link to your bank website via an email, as these emails can lead you to a fake site.

Don’t give out your account details in response to an email, even if the email appears to be from your bank. Also, never save your bank details and password on a shared computer.

Another thing that you can do to keep an eye on things is to check your credit report. This will enable you to identify any suspicious financial transactions that you do not recognise, which could indicate that you have become a victim of ID theft and fraud. You can then get the matter sorted out before too much damage is done.

Even when you are using your debit card to make cash withdrawals or to pay for items in shops, be careful about people standing too close who could pick up on your PIN number.

Also, look out for suspicious devices on cash machines that are sometimes used by fraudsters to obtain the card details of people that use the machine.

If you lose your debit or credit card you must inform your bank right away so that the account can be frozen and the chances of anyone using the card can be reduced.

Also, inform the relevant authority right away if you notice any suspicious transactions taking place – for instance, any suspicious looking transactions on your bank statement should be reported right away to your bank.