How to avoid identity fraud

Identity fraud is the fastest-growing crime in the UK. Victims have financial and personal details stolen, which are then used to illegally obtain credit, cash and goods.

Fraudsters have a variety of favoured ways to obtain private information. These include going through household rubbish, 'shoulder surfing' for PINs at cash machines, and using spoof emails, Web sites or letters to request financial information.

Here's how you can help reduce the risk of your identity being stolen:

Data and personal information

1. Shred documents such as bank or credit card statements, utility bills and debit or card receipts before discarding them.

2. Check bank/credit card statements regularly, and promptly report any suspicious transactions.

3. Obtain a copy of your credit report and scrutinise it in detail, checking for unrecognised activities such as credit searches you didn't authorise.

4. Ensure that you formally close accounts you no longer need, as dormant accounts might be reactivated by fraudsters.

5. Always check that letters, faxes or emails asking for personal details are genuine.

6. Never give information to unknown callers such as a telephone canvassers who can't prove their identity.

7. Never disclose, write down or store in any way PINs and passwords.

8. Make sure bills and statements arrive on or around their usual date. Fraudsters have been known to intercept such information.

9. If an important document does go astray in the post, inform the companies concerned immediately.

10. Try to limit the amount of documentary information you carry around with you.

11. Register with the Mailing Preference Service to take your name and previous address off the majority of UK mailing lists, and arrange for your mail to be forwarded by the post office.

12. If you move home, get a copy of your credit report to help you remember to give your new address to all the companies you deal with.

Credit and debit cards

1. Sign any new credit cards as soon as you receive them.

2. Keep a list of all card numbers along with account details.

3. Don't take all your cards out with you if it's unnecessary.

Using the internet and email

1. Check that your email security settings are at an optimum level.

2. Use a secure computer (e.g. your home PC) to check online details such as bank or credit card accounts, rather than public computers such as those in libraries or Internet cafes.

3. Fraudsters may send you an email asking you to click on a link to a false Web site for your bank. Always access your bank's site by typing the address in the browser address bar (e.g. www.natwest.co.uk).

4. When giving personal details on Web sites, always check for 'https' in the browser address bar and/or the padlock symbol at the bottom left/right of the Web page you are viewing.

5. Consider installing encryption and/or firewall software on your PC or laptop to help protect sensitive information you have stored.

6. Be especially wary of emails claiming that you've won a prize. The chances are you haven't.

-- Try a free trial of the CreditExpert Monitoring Service from Experian, which alerts you to changes to your credit report