Credit Card Holders At Risk From Identity Fraud

Identity Fraud is becoming an increasing risk for credit card customers who fail to close unused accounts properly.

According to APACS (Association of Payment Clearing Services) over 30 million people within the United Kingdom hold an average of 2.3 personal credit and charge cards of which 35% are dormant.

Millions of cardholders are putting themselves at risk from fraudsters, as they are simply cutting up the card to destroy it and not informing the card issuers they wish to discontinue its use.

The account will continue to run until the card issuer is informed, therefore cutting up these cards leaves the account open and dormant, and inviting to fraudsters. Fraudsters can take on a false ID and make numerous changes to the account details (such as address) without the knowledge of the cardholder.

MyCallcredit director Alison Nicholson said "More than 10 million Britons may have credit facilities registered in their names which are open to theft by an ID fraudster who would be able to run up bills without the victim's knowledge".

The average time for someone to realise there identity is stolen is 16 months according to the CPP Group, who provide advise and assistance on identity theft. Within this time the fraudster could easily run up masses of bills and debt, and without knowledge your ID and credit file stolen.

Trying to prove ones innocence is a timely and costly job when you have been a victim of crime. In accordance to CIFAS (a fraud prevention service), if 20 to 30 lenders have supplied a criminal with credit, it can take up to 300 hours and £8000 to prove ones innocence.