Identity Theft

Identity theft is one of the fastest-growing crimes in the UK, with over 237,000 cases recorded by CIFAS in 2023. Criminals steal personal information to open accounts, take out loans, or commit fraud in your name—often without you realising until it’s too late. While some cases result in financial loss, others can lead to long-term damage to your credit rating, personal reputation, or even legal complications if criminals commit crimes using your identity.

How Does Identity Theft Happen?

Identity thieves use various tactics, from traditional scams to sophisticated cybercrime. The more personal data they collect, the easier it is for them to impersonate you. Common methods include:

• Phishing emails and texts – Fraudsters pose as banks, HMRC, or delivery services to trick you into giving away passwords or card details. These messages often create a sense of urgency, warning you of suspicious activity on your account or offering fake refunds.
• Data breaches – If a company holding your personal information is hacked, your details may be leaked and sold online. Criminals use stolen login credentials to access your accounts, knowing that many people reuse passwords across multiple sites.
• Social media mining – Many people unknowingly reveal sensitive details on public profiles. Even something as simple as sharing your birthday, pet’s name, or workplace can provide scammers with answers to common security questions.
• Dark web trading – Stolen data, including passport details, National Insurance numbers, and bank credentials, is often sold in bulk on the dark web, where fraudsters can purchase entire identity profiles for use in scams.
• Card skimming and cloning – Devices attached to ATMs or payment terminals can steal your card details when you insert your card. Contactless payment fraud is also on the rise, with criminals exploiting weak security on some devices.
• Fake job offers and investment scams – Fraudsters advertise high-paying jobs or investment opportunities that require you to submit personal details, pay an upfront fee, or unknowingly hand over access to sensitive accounts.

What Are the Consequences of Identity Theft?

Once a criminal has enough of your personal data, they can commit a wide range of fraudulent activities, including:

• Financial Fraud: Taking out credit cards and loans in your name, leaving you with debt.
• Bank Account Compromise: Draining money from your bank accounts or applying for overdrafts.
• Benefit Fraud: Claiming benefits, pensions, or tax refunds fraudulently, often without your knowledge.
• Criminal Activities: Using your identity to evade the police or commit further crimes.
• Service Fraud: Opening mobile phone contracts or setting up subscription services, making them difficult to trace.
• Reputational Damage: Renting properties or applying for jobs using your details, potentially damaging your personal or professional reputation.

Victims often don’t realise they’ve been targeted until they receive unexpected bills, debt collection notices, or find their credit score has dropped due to unpaid accounts they never opened. The stress of identity fraud can be overwhelming, with victims experiencing anxiety, frustration, or even long-term stress due to the effort required to clear their name.

If identity theft occurs as a result of a violent crime, such as a mugging, victims may be left with both physical and psychological trauma. In such cases, they may be able to seek compensation for psychological damage.

How Can You Protect Yourself?

While no method is foolproof, taking proactive steps can significantly reduce your risk of identity theft:

• Use strong, unique passwords for different accounts and enable two-factor authentication whenever possible.
• Shred personal documents such as bank statements, medical letters, and utility bills before throwing them away.
• Be wary of unexpected calls, emails, or texts that request sensitive information or create urgency.
• Monitor your bank statements and credit report regularly to spot unusual activity before it escalates.
• Limit the personal information you share online, especially on social media, as criminals can use it to answer security questions or impersonate you.
• Check website security when entering personal details—secure sites should have ‘https://’ and a padlock symbol in the address bar.

For detailed guidance, visit our pages on How to Avoid Identity Theft Online and Protecting Yourself Against Identity Theft.

What to Do If You’re a Victim

If you suspect identity theft, acting quickly is crucial to minimising the damage. Follow these steps:

1. Contact your bank immediately – Freeze affected accounts and request a new card if necessary.
2. Report it to Action Fraud – The UK’s national fraud reporting centre can provide guidance and investigate. Visit actionfraud.police.uk or call 0300 123 2040.
3. Check your credit report – Look for unknown accounts or applications under your name. Services like Experian, Equifax, and TransUnion offer free checks.
4. Inform CIFAS – Register for protective registration with CIFAS to help prevent further misuse of your details.
5. Update your security details – Change your passwords, enable two-factor authentication, and review any linked accounts that may also be compromised.

Identity fraud can take time to resolve, so staying persistent and keeping records of all communications with banks, agencies, and authorities is essential.

Stay Informed & Stay Safe

Identity theft is constantly evolving, with criminals using more advanced methods to trick victims. Keeping up to date with the latest scams and fraud prevention techniques is key to staying protected.