Are you living in an ID fraud hot spot?

- See your credit report for free

Experian's Victims of Fraud service highlights likely victims, their locations and the methods criminals use to commit identity fraud. Read on to discover if you are at risk.

Identity fraud grew by 68 per cent in the first half of 2007, compared to the same period a year earlier, with the wealthy and those living in the Greater London area most at risk.

Where?

Analysis of the experiences of people who turned for help to Experian's Victims of Fraud service after their identities had been hijacked by criminals shows that London remains the biggest target for fraudsters.

In Kensington, residents are almost five times more likely to become victims than the UK average. It is followed by the Clapham Junction area of Wandsworth; Victoria Street, which leads from Victoria Station towards Westminster; Queensway; and Chelsea's King's Road.

Away from the capital, affluent commuter towns in the Home Counties head the ID fraud table, with St Albans, Guildford, Slough, Maidenhead and High Wycombe generating most cases.

In the Midlands, you're most likely to have your ID stolen if you live in central Birmingham, followed by Stratford-upon-Avon and Solihull. Scotland's major cities are also under threat, with residents in Edinburgh's Prince's Street area, central Glasgow and Aberdeen regularly becoming victims.

Criminals with an eye on south-western and northern England follow the pattern of those operating in the south by targeting wealthier areas such as Cirencester, Cheltenham and Salisbury or Altrincham, Harrogate and Macclesfield.

Overall, your ID is safest if you live in EastAnglia or Wales. Only Cardiff makes it into the top 100 ID fraud hot spots, at number 77, while East Anglia's leading contender is Bury St Edmunds, at 138. Welsh towns Neath and Merthyr Tydfil also occupy the bottom of the table, in 286th and 285th place.

Who?

Not surprisingly, criminals look out for wealthy victims with the best credit ratings, so that they can borrow the largest possible amount of money before they are discovered.

They include corporate top dogs in their 40s and 50s, who are at the peak of successful careers, and top-salaried professionals living in desirable areas. Up-and-coming young professionals and graduates who are renting accommodation are also a focus, as are council tenants.

How?

The growing involvement of organised criminal gangs is reflected in the increasingly sophisticated ways that identities are being compromised. The most common method is present address fraud, which involves intercepting mail and accounted for 39 per cent of cases between January and June 2007.

Forwarding address fraud, in which mail is redirected, showed the strongest increase and was responsible for 32 per cent of frauds reported to Experian.

What?

In most cases, any financial losses caused by identity fraud are borne by the companies involved, not the individuals who have become victims.

The average identity fraud means a loss of £680, with mail order companies targeted most frequently - they account for 68 per cent of all new cases. Lenders offering loans are hit hardest financially, losing an average of £6,138. They account for 34 per cent of all financial losses.

Protect yourself

One notable result of this year's analysis was the rise in the number of people who discovered for themselves that they had become victims of ID fraud. Previously, people had most often been notified by financial services companies, although some were also refused credit, received notice of an unexpected debt or simply noticed something wrong in bank or credit card statements.

In 2007, victims most often realised their position while checking their credit reports - the personal histories of the credit they have applied for or taken out and their repayment record, along with other information such as registration to vote and their addresses.

Because all applications and accounts are shown, people easily spot loans, mortgages, catalogue and mobile phone accounts that they did not apply for themselves - which is how 55 per cent of those who turned to Victims of Fraud knew that they had a problem.

Members of credit monitoring and identity fraud protection services such as CreditExpert, an online service from Experian, are also sent text or email alerts when there is a significant change to their credit reports, so they can act to stop identity theft escalating.

"The dramatic rise in identity fraud coincides with increased activity by organised criminal gangs," says Jim Hodgkins, managing director of CreditExpert. "As this research shows, credit report monitoring is one of the single most effective ways to protect yourself from becoming yet another victim - and it has the added benefit of helping you to stay in control of your finances."

It's easy to check your credit report online - and it's free with a 30-day trial of CreditExpert. As well as helping to protect you against identity fraud, it gives you a snapshot of your credit history and offers advice on how to improve your credit rating - which means that you could save money by getting better deals.