National Identity Fraud Prevention Week      12 – 18 October 2009

We know too that during hard times, there is often an upsurge in crime – including identity theft.

As previous CIFAS fraud trends releases have noted, the economic slowdown and rises in fraud go hand in hand. The escalation in identity frauds and in facility takeover frauds in the first quarter of 2009 compared with the same period in 2008 confirms this. (Source: CIFAS)

You may say ‘it won’t happen to me’, but nobody is immune to identity theft. We can all take simple, effective steps to prevent it. Now we have a better idea of how criminals obtain and use our personal details, we’re better equipped to meet the problem head on.

At Lloyds TSB, we’re doing everything we can to help fight identity theft, and we’d like to help you protect against it too.

This site tells you about our initiatives, and offers useful advice on ensuring that a fraudster is not closer than you think.

• Card ID theft losses for 2008 increased by a staggering 39% from £34.1m in 2007 to £47.4 million in 2008 according to APACS, now known as UK Payments Administration Ltd 
• The unwelcome reappearance of identity fraud - A 40% increase in the number of people being impersonated indicates that the flat trend seen in 2008 (where identity fraud increased by only 0.06% from 2007) was exceptional. While last year's figures were a surprise, the sudden and significant increase in the first quarter of 2009 heralds an unwelcome return of identity fraud as the fraudsters' method of choice; as fraudsters assume creditworthy identities in order to swindle individuals and companies alike: stealing funds, goods and services at someone else's expense (Source CIFAS)
• The ever-present scourge of identity fraud.
  A 74% increase in the level of identity fraud (which includes both victims of impersonation and the creation of a fictitious identity by the fraudster) indicates that, while this period of recession has revealed new methods of fraud, fraudsters return to 'old favourites' with a vengeance. Fraudsters look to swindle individuals and companies alike: filleting out profits and leaving a trail of damage in their wake. It is worth noting that forged or altered UK passports are the most commonly used document in support of fraudulent applications. (Source CIFAS)
• Fraudulent use of credit and debit cards amounted to £609 million in 2008 (APACS) now known as UK Payments Administration Ltd.
• Card-not-present fraud increased from £290.5m for the whole of 2007 to £328.4m for 2008.  (Source APACS) now known as UK Payments Administration Ltd.

The impact of having your identity stolen can be considerable, and can include having difficulty getting loans, credit cards or mortgages until the matter is sorted out.

Ultimately we all become the victims of a fraud, as we end up paying higher prices in the shops, higher interest on our mortgages, and higher premiums on our insurance policies because of fraud.

It can also take a considerable amount of time and effort to put right the damage caused and clear your name.

But thanks to increasing awareness, and a better understanding of how criminals operate, there are many ways to spot it early, prevent it, and deal with it effectively.

It’s surprising the damage a fraudster can do with seemingly insignificant information. Taking extra care with your paperwork and how you use the internet can reduce the risks and ensure that a fraudster is not closer than you think.

Follow simple steps when you’re…

Printing personal documents

• Protect your post, and anything you print from the internet, just like you’d protect the contents of your wallet or purse. And if you move home, make sure you use the Royal Mail redirection service.
• Read your statement as soon as you receive it, and report any transactions you don’t recognise.
• Store statements, bills, and confidential letters securely, like you would your valuables.
• We recommend that you stop receiving your bank statements by post and check your accounts online, so criminals can’t intercept your post. Lloyds TSB offers this service to all its customers.
• Shred any personal documents you don’t need.

• Be wary of ‘shoulder-surfers’ – people behind you in queues at the till or at the cash machine, trying to see you enter your PIN. And when you hand over your card to make an in-store purchase, don’t let it out of your sight.  Carefully watch whoever has hold of your card for swiping.
• Don’t use the ATM if you think it’s been tampered with, and report your suspicions to the bank.
• Keep your wallet, purse, mobile phone, organiser, house keys – any personal effects – out of sight and reach.

• Use different PINs and passwords for each account or application, and never tell anyone what they are or give them over the phone. Lloyds TSB would never ask for your full PIN or password.
• Avoid using the ‘auto complete’ option when completing forms online. The software is easy for thieves to access.
• Look out for ‘phishing’ emails, which appear to come from financial institutions asking you to confirm account details. You can usually report these emails to the financial institutions they claim to come from and help close the net on fraudsters. Lloyds TSB never asks customers to confirm account details by email.
• Update your computer’s anti-virus software and firewall settings regularly.
• Be careful using internet cafés, forums, chat-rooms and social networking sites.  Be wary of publishing any identifying information – fraudsters often use them to try and access personal information.
• Be wary of unsolicited phone calls, emails, SMS text messages and visits to your home. With ‘friendly sales calls’, always ask for the caller’s number and verify the company name.

Identity fraud can take effect without you knowing. So don’t make ID fraud easier.  Check your credit status by contacting one of the three credit reference agencies directly – Experian, Equifax or CallCredit.

At Lloyds TSB we are serious in our efforts to combat identity fraud, that's why we're making sure that our colleagues have access to financial crime awareness material through leaflets, DVDs, road shows and online courses.

We also use automated fraud detection systems to assist us. These systems highlight any unusual spending patterns on an account and checks are then made to ensure purchases are valid.

As part of our fraud detection services, we may call customers if unusual transactions appear on their accounts (calls may use automated speech).

If you are unfortunate enough to become a victim of ID fraud, and are a member of LTSB’s ID Aware, you'll get the expert advice and support you need to put the record straight and restore your credit status, quickly and easily.

Extra help and guidance for our business customers

It’s a sad statistic, but in 2008, Companies House estimated that corporate ID theft alone could be costing businesses as much as £50m every year.

Companies House also announced that between 50 – 100 cases of non-personal identity theft occur every month.
Non-personal Identity fraud is stealing the identity of a company and fraudulently trading under that name without the knowledge of the legitimate company to obtain goods, including credit and finance in the legitimate company's name.
As a business owner or employee responsible for security, finance or IT, there are some key ways you can reduce the risk of identity fraud:

• Check the identity of every new customer. Use reputable credit reference agencies.
• Introduce and stick to strict procedures for disposing of documents containing any company information – shredding information continues to be one of the best ways of disposing confidential information.
• Store sensitive documents in a safe place and limit access to only the employees who need it, to ensure information is not falling into the wrong hands.
• Keep company accounts out of the public domain to ensure fraudsters can’t obtain sufficient detail to facilitate an attack by impersonation.
• Update information security regularly, using the latest versions of computer firewalls and anti-virus software. This is crucial in staying one step ahead of corporate fraud.
• Encrypt important information for extra security, this allows only authorised users to access them. This can be a powerful guarantee of privacy and security.
• Have a clear change control process to ensure that requests to alter payment details are genuine and not someone impersonating your customers.
• Make all staff aware of the risks of corporate fraud, and the procedures in place to tackle them.

For more information Companies House provides useful guidelines on how companies can protect themselves.