Identity theft is extremely lucrative for the fraudsters who look to make money this way. For the people who suffer, however, this can be a stressful and time-consuming problem and the longer it takes someone to realise that they have a problem, the worse the damage can be. Identity theft techniques can be very sophisticated nowadays and it can take some victims months to spot that there is a problem.
According to the UK's Fraud Prevention Service, CIFAS, a really serious case of identity theft can take 200 hours to put right and could cost around £8,000. Spotting a potential problem of this kind early can, however, make it a lot easier and quicker to fight identity theft. Solutions offered by the major credit reference agencies (such as Experian, Equifax and CallCredit) may be of some use.
What Will a Free Identity Theft Check do?
It isn't always easy to spot identity theft or identity fraud - this is why so many people take months to see that there is a problem. One of the easiest ways to check this out is to use an identity theft check with a credit reference agency. This kind of check can be done without charge and may give indications of potential problems such as:
- Whether any accounts or products have been applied for without the account holder's knowledge.
- Whether links to unknown accounts/individuals have been added to the record.
- Whether identity theft techniques have caused problems with the actual credit rating.
Bear in mind that a lot of the activity that goes on with identity theft may not be immediately noticeable in everyday life. A lot of consumers only actually realise that there is a problem when they try to take out a financial product themselves such as a loan or a mortgage, are turned down after a credit check and then find that a fraudster has been opening accounts and borrowing money in their name.
They will then check out their credit record with a reference agency and will see the problem. Getting ahead of the game and using a free identity fraud check before a problem comes to light could make dealing with identity theft a lot less hassle.
What About Future Identity Theft and Fraud Alerts?
A lot of people, once they have looked at their free identity theft check, will then sign up with one or more credit reference agencies. There is a fee involved to do this after the initial free trial but this could be a useful preventative measure to take. Once registered the agency will send out alerts if any significant change or activity takes place on a credit history which could be a useful warning.
Those interested in protecting their personal and financial data may find it useful to learn more about how to avoid identity theft. Credit cards can cause a lot of these kinds of problems and checking out card fraud protection tips may also be worth doing.
Source: CIFAS
Carol Finch - Carol Finch is the Topic Editor for Retirement Planning, Budgeting, E-Commerce & Technical/Business Writing on Suite101.
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