The truth about internet fraud

Posted on 7 May 2009 at 14:53

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It makes more sense to provide invented answers to such security questions. It will be tricky remembering which answer you give to which company, so write your answers down and store the list safely in a locked drawer (and not on your PC, unless you use encryption software). That way, if someone steals the answer you gave to your energy company, they can't reuse it with your bank, for example.

Monitor your credit

Keep an eye on your bank and credit card statements. If you see any unusual activity, report it to the company immediately. Most plastic card fraud is due to 'card-not-present' (CNP) fraud, where an unauthorised person has bought online, via mail order or over the telephone using someone else's card details. This doesn't really count as identity theft, but it's still a threat worth mentioning, particularly as cases of CNP-related fraud are on the increase.

Checking your records with CIFAS will alert you if someone has tried or is trying to steal your identity. When a CIFAS member such as a credit card company detects a suspected fraud, it will place a warning against the name and address of the applicant. If someone is trying to apply for a credit card in your name, the warning will appear on your record. This is not an accusation that you are a fraudster - just a note that someone has tried to use your details.

If there's a warning next to your name, other companies that access the database will take extra precautions when handling applications from you. The warning can also apply to an address, so if you've lived in rented properties, you may find it tricky to get a credit card.

You can find out if there's a warning against your name or address by exercising your rights under the Data Protection Act, which allows you to seek access to any data held about you. A request costs around £2, although the actual figure will vary. The three credit agencies that hold CIFAS information are Experian (www.uk.experian.com), Equifax (www.equifax.co.uk) and Callcredit (www.callcredit.co.uk).

Protective Registration

If your personal details have been stolen, you can place a warning against your own address to alert financial companies that a fraudster could be about to impersonate you. A thief will then find it more difficult to order a card in your name. This is known as protective registration.

You can also use protective registration to help protect the identity of your deceased relatives and, more importantly, protect surviving but vulnerable partners. Relatives or executors of the deceased can place an entry in CIFAS's Protective Registration. You'll need a copy of the death certificate to do this.

To apply for CIFAS's Protective Registration, download the form from www.cifas.org.uk/download/protectiveregistration.pdf. If you've been burgled, enter the crime reference number and a reason for placing the warning.

Don't have nightmares

People have been fooling others using the same tricks for generations. However, the internet makes it easier than ever to target more people. Knowing about the different cons we've highlighted here will render you virtually immune to skulduggery and will put you in a strong position to advise other, more vulnerable friends and family members.