Monitor your credit report - Protect your ID

Written by renxue January 09, 2008 16:39

Millions of families have raced to change the passwords and PINs that protect their bank accounts in the wake of the loss of personal data on everyone receiving child benefit. But that isn't enough to protect their identities from thieves.

Criminals could use the information, which includes names, addresses and dates of birth for parents and their children, to impersonate them, borrow money in their names and apply for benefits.

Identity fraud is one of Britain's fastest-growing crimes and the key to protecting yourself from it is to monitor your credit report regularly.

Your credit report is the personal history of the money you have borrowed, such as credit cards, loans and mortgages. It also includes items such as mobile phone contracts and catalogue shopping accounts - anything that involves lenders granting you credit and trusting that you'll repay it.

It details your repayment history, any recent applications for credit, plus any court judgments against you for non-payment of debts, bankruptcies and IVAs. If you have any joint credit accounts, such as a shared mortgage, the name of the person or people with whom you share these accounts will also feature. They are known as your financial associates.

Finally, it includes full details of your current and recent addresses and whether you are registered to vote.

Lenders use this information, along with details in your application, to assess the risk that you won't repay them. They use the electoral roll as a precaution against fraud, to double-check that you are who you say you are and live where you claim to live. If you have any financial associates, they may check their credit reports too, as their financial status could affect your ability to make repayments.

Regular checks on your credit report offer invaluable protection against ID fraud because they allow you to spot unfamiliar accounts or applications for credit that you know you didn't make. You can then contact the relevant organisations to explain your situation and stop problems from developing.

As well as changing the passwords and PINs of compromised bank accounts and monitoring your credit report, there are some simple precautions you can take to ensure that ID criminals don't gather more information that will enable them to impersonate you.

For example:

Register to vote at your current address - contact your local council or download a form from www.aboutmyvote.co.uk.

Always check your credit card and bank statements. An unidentified or suspicious transaction is often the first sign of fraud.

Don't throw away anything that could be used to steal your identity - even direct mail offers with your name and address on them. If in doubt, shred it.

Don't share confidential information, such as PINs, bank account details and passwords. Be especially wary of unsolicited calls, e-mails and market research surveys - they may be criminal ploys to get hold of your personal details.

Don't carry important documents around. Your passport, driving licence, payment cards and even address can be used by criminals if they are stolen.

Report thefts to the police and any other relevant organisations, such your bank or credit card issuer, to warn them about potential fraudulent approaches in your name.

Get mail forwarded when you move and notify the Post Office immediately if any of your mail is going missing - thieves may be intercepting it.

Limit the amount of personal information that can be viewed by others on social networking sites.