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What is identity theft?
By admin | October 8, 2008
The definition of identity theft is the stealing of a personal or corporate identity for fraudulent purposes. Identity theft can seriously affect the victim’s financial circumstances as well as costing the government and financial services millions of pounds a year.
Personal Identity Theft
Your identity is valuable. Like any other type of valuable item, criminals will steal it if they can. All criminals need to steal your identity is a few bits of personal information such as full name, date of birth, address and postcode.
Criminals can use this information to:
- run up huge credit card debts in your name
- obtain loans in your name
- obtain a mortgage in your name
- open bank or building society account in your name
- apply for state benefits in your name such as housing benefit, child benefit, tax credits, job seeker’s allowance, income support etc
- register a vehicle in your name
- apply for a driving licence in your name
- apply for a passport in your name
- apply for a mobile phone in your name.
Corporate Identity Theft
Criminals also target businesses. If a fraudster can get sufficient information about a business they may be able to apply for a corporate credit or debit card and run up massive debts.
Corporate identity theft can have far reaching consequences for businesses. For example, criminals can submit forms to Companies House that will:
- appoint new directors using form 288a
- change the company secretary or director using form 288c
- change the registered address of a business using form 287
Unbelievably, Companies House does not inform the true company secretary or directors that these documents have been lodged or validate any of the details provided.
Successful registration means that the “new” criminal directors can open new bank accounts, order items to be delivered to the “new” address. Further more, they can ruin the credit rating of the business and leave it with massive debs to clear. The reputation of the business can be irretrievably damaged.
Identity theft is one of the fastest growing fraud crimes around. Both individuals and businesses can be the victims of identity theft and identity theft protection should be your number one priority as this type of crime can cause financial havoc and have long term consequences.
Personal identity theft can start when a fraudster steals some personal information about you such as your date of birth or credit card number. Armed with this information, fraudsters can run riot, running up debts in your name or opening fraudulent bank accounts. All this can be done before you even know you were a victim of identity theft.
Even worse, when arrested fraudsters can even use your name and identity to defend themselves against criminal acts that they have committed. In simple terms - you get the blame.
This website is all about identity theft and the precautions you can take to make sure that it never happens to your or your business. Buy taking simple fraud precautions, you can make sure that fraudsters cannot commit their crimes in your name.
Topics: Identity Theft Fraud Protection |
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