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15 October 2008 Credit Crunch ‘boosts ID fraud’, report claims

Bank account holders are more likely to be targeted by fraudsters as a result of the Credit Crunch, according to a new report by MPs.

The all party parliamentary group said that current restrictions on credit are forcing criminals to target existing accounts rather than using fake identities to open new ones.

Whilst it appears traditional forms of identity theft have fallen, the study found that there has been a ‘vast’ increase in cyber crime, with fraudsters using the internet to hack into existing accounts.

The group’s chairman, Nigel Evans MP, claimed that as financial institutions begin to take a ‘firmer line on loans, mortgages and overdrafts,’ individual accounts offer ‘a guaranteed financial resource.’

He also warned that account holders were ‘not being smart enough’ to protect themselves.

Yet according to the British Bankers' Association, there are ‘simple steps’ customers can take to prevent falling victim to identity fraud. These include: installing up-to-date internet security software, shredding old statements, keeping cards and Pin numbers secure and reporting suspicious activity.

Home Office statistics reveal that ID fraud cost the UK economy £1.7bn in 2006.