Protecting yourself from identity theft and fraud
Posted by Matthew Andrews on August 14th, 2024.
Your safety and the security of your money is our highest priority, and we implement stringent safeguarding measures to protect all our customers. However, it’s also important for you to take steps to shield yourself from fraud.
To assist you in identifying potential scams and staying secure, we are publishing a series of articles focused on fraud protection. This article specifically addresses identity theft and fraud.
What is identity fraud?
Identity fraud is a type of crime where someone illegally obtains and uses another person’s personal information to commit fraud or deception, usually for financial gain. This information can include your name, date of birth, address history, bank account details, and other sensitive data.
Once fraudsters have access to this information, they can carry out various illegal activities such as taking out loans or credit cards in the victim’s name, or withdrawing money directly from the victim’s bank accounts. In more extreme cases, they might apply for official documents like passports, using the stolen identity to travel and avoid detection by authorities.
The impact of identity fraud on victims can be severe. It often takes a significant amount of time to solve and in the meantime, victims may face prolonged financial hardship, damage to their credit scores, and emotional distress.
An example of identity fraud
Emily, a young professional, received a call from a company claiming to be conducting a survey on behalf of her local GP. Trusting the legitimacy of the call, Emily shared her current job details, contact details, and past addresses with the caller.
A few days later, Emily noticed a man rummaging through her paper recycling bin outside her apartment, but didn’t think much of it. However, over the next few months, Emily began receiving notifications from various financial institutions regarding her credit card limit.
Emily didn’t own a credit card, so she initially assumed these were phishing attempts. As the calls and letters persisted, she decided to investigate further. She contacted the companies and discovered that someone had successfully opened multiple credit cards in her name, quickly maxing them out and leaving her with significant debt.
The identity fraud left Emily in a state of shock. She spent countless hours working with credit card companies and credit bureaus to prove the fraud and remove the erroneous debts from her credit report. But her credit score still took a major hit.
Five tips on how to protect yourself
1. Regularly monitor your accounts and credit rating
Keep a close eye on your transaction history across all your accounts, including bank accounts and credit cards. If you notice any unrecognised payments, contact your bank immediately. Additionally, routinely check your credit rating for any unusual activity.
2. Secure sensitive documents and devices
Ensure the safety of sensitive documents, devices, and accounts. Store important documents like forms of identification and bank statements in a secure location. When disposing of these documents, always shred them first. Protect your mobile devices, computers, and online accounts with strong passwords and update them regularly.
3. Be diligent with correspondence
When you move, update your address with any organisations that send you sensitive information. Arrange for your postal service to redirect your mail. If you receive letters from unfamiliar companies, contact them to find out why. Similarly, if you are expecting mail that doesn’t arrive, follow up on it.
4. Be wary of unsolicited requests for information
Exercise caution if someone unexpectedly calls, texts, or emails asking for personal information. While some requests might be legitimate, it’s always best to play it safe. Verify the identity of the requester by asking for their name and then contacting them through their official, verified phone number.
5. Never share account login information
Never disclose details like your debit or credit card PIN, online banking passwords, or authentication codes to anyone. No legitimate organisation will ask you for this information.
If someone targets you
If you suspect that you’ve been targeted for identity theft or fraud, it’s crucial to act immediately.
Report any lost documents, such as passports or debit cards, to the issuing organisations to cancel them and request replacements. If you notice any unusual or missing letters or unrecognised bank transfers, contact the relevant company right away.
If you believe that a document or sensitive information has been stolen, inform the police or use the Action Fraud online reporting tool.
Additionally, consider applying for protective registration with CIFAS, the UK’s leading fraud prevention service. For a fee of £25 for two years, CIFAS will flag your name in their National Fraud Database, alerting organisations using their data to take extra precautions due to the potential risk.
More information on identity fraud
For more information on how to detect and protect yourself from identity fraud, visit the CIFAS and Action Fraud websites, which both offer plenty of useful resources and guidance.
Another excellent resource is Stop ID Fraud, which is dedicated to identity fraud and theft, while Take Five is a national anti-fraud campaign run by the trade association UK Finance.
If you’ve been a victim of identity fraud, Victim Support can offer assistance, information, and advice.
Finally, if you’re worried that your TorFX account may be at risk, contact us as soon as possible and we’ll be happy to help. You can also download our app, or use our online platform, to keep an eye on your transfers.
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