Identity Theft Debts

Are you in debt due to Identity Theft?

We receive a lot of calls and emails from the public asking; "I am in debt due to identity theft….What can I do?"

The UK Insolvency Helpline are committed to combat the threat of identity theft.

Your identity and personal information are valuable. Criminals can find out your personal details and use them to open bank accounts and get credit cards, loans, state benefits and documents such as passports and driving licenses in your name. The result could leave you with large personal debts.

This section of the website can help you protect yourself, advises what to do if it happens to you and suggests where to get further help if you are in debt due to identity theft or fraud.

What is identity theft?

Identity theft is a term used to refer to fraud that involves stealing money or getting other benefits by pretending to be someone else and getting then into debt. The term is relatively new and is actually a misnomer, since it is not inherently possible to steal an identity, only to use it. The person whose identity is used can suffer various consequences when they are held responsible for the perpetrator's actions such as credit card debts, store card debt or personal debt from loans. In the UK it a crime to use another person's identity for personal gain.

Identity theft targeted areas

The most targeted areas are wealthy neighborhoods’, who frequently use credit and other cards with high-spending limits, providing rich pickings for gangs.

Those areas also have many bars, hotels and restaurants, where there are easy opportunities for stealing identity details. No one should be complacent - the public need to take steps to protect themselves. People need to monitor expected post so missing items are detected quickly, ensure banks and other institutions and companies are told of address changes and have mail forwarded to a new address for at least six months.

Checking credit reports can reveal if unauthorised accounts or cards have been taken out in the cardholder's name. Always check statements and watch for small unrecognised transactions - these can be a precursor to serious spending by a fraudster.A good example is a fraudster buying a single music download for £1 to prove the card details are real. Once it goes through they will start a spending frenzy.

What does the financial sector do reduce debt due to identity theft

Thorough checks are made on applications for financial products - for example, proof of name and address are often routinely requested, and companies carry out system checks too. It is common for a lender to ask to see a photo identity such as a passport or driving licence plus a recent utility, council tax bill or HM Revenue & Customs tax code notification. But the checks don't stop there. The electoral roll is checked too, and any payment history on existing accounts on a credit reference agency can be taken as supporting evidence of the individual's address. Fraud databases like CIFAS are also checked to ensure repeat offenders are identified.

Tip on avoiding debts from identity theft

Tips and advice like this may seem old-hat, but with 65,043 victims of identity fraud recorded by CIFAS Members in 2007, it just goes to prove that no-one should be complacent.

Always take particular care of your handbag or wallet. Don’t give thieves a chance. Be especially careful with your credit and debit cards. Try not to keep them together or have them all with you at the same time and never let them out of your sight. Also, avoid carrying documents such as passports unless necessary and never keep in the same bag as your wallet.
Shred all documents when you dispose of them. These can range from credit card or bank statements to letters from doctors, employers and indeed anything bearing your full name and address or signature. Receipts can also be valuable to a fraudster, so take care to shred these too.
Examine your bank and credit card statements carefully. Keep all your receipts until you have checked each one individually against the statements. This will help you to monitor your account.
Check your credit reference agency file regularly for unfamiliar items and take prompt action if you spot anything strange.
Don’t forget to keep your home secure, and keep your personal documents locked away. Increasingly it is these documents that are being searched for by burglars rather than TVs and computers. Theft or loss of documents such as your driving license or passport should be notified immediately
Don’t give your personal details to callers, charity collectors or “researchers” in the street. Check whether they are truly who they claim to be before giving them any information. Be just as careful when taking telephone calls. Fraudsters may try to dupe you into believing they are from banks or other companies. If you give them your account and security details they could run up huge debts in your name.
When buying online – keep your passwords secure at all times and regularly change your passwords. Make sure that you have up-to-date security software and only use sites that provide secure payments and be sure you know who you are dealing with.
Avoid online bank or shopping transactions when using public wi-fi zones or shared computers.
Redirect ALL post when moving house or business address

Protect yourself from getting into debt from identity theft or fraud

According to Experian, 55% of identity theft victims discovered they had personal debts when their identities had been compromised when looking at their credit report.

Identity Protection Alert provides an amount of insurance cover towards the costs incurred in clearing your name if you become a victim of identity fraud and your personal information is used for identity theft.
Please note that Identity theft committed by someone at your address and pre-existing cases are excluded.
Credit Alerts can be sent to you weekly by email or by text message to provide an early warning of identity fraud if there have been any changes to your credit report.
Money can be paid out to you to cover replacing your lost or stolen passport and driving license if you have registered them.

Money Advice Direct advises over a thousand people a week on different debt problems associated by debt caused by identity theft. In every single case we only recommend best debt solution, based entirely on each case. Call us free on 0800 074 6918 to find out more or apply online.

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IVA's

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In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
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Identity Theft Debts

Are you in debt due to Identity Theft?

What is identity theft?

Tip on avoiding debts from identity theft

Protect yourself from getting into debt from identity theft or fraud

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