by: Rachel Lane
ID theft is a major consumer concern, though there is apparently much confusion about proactive protection initiatives and apparently safe and unsafe spending behaviour. For example, many consumers remain reluctant about shopping online, but they may still give out personal details over the phone in a cold call, or they may have redundant or dormant accounts and financial products which are susceptible to fraud.
If reducing fraud vulnerability wasn’t sufficiently difficult already, consumers are now being offered anti-ID theft services and ID protection insurance by banks, insurance companies and credit reference agencies. There is also considerable debate around such policies however, as they do not offer full financial compensation. In The Observer last week, Richard Brown, Chief Executive of consumer finance site moneynet ( http://www.moneynet.co.uk ) stated that:
“Few, if any, of them appear to offer insurance protection against actual financial loss in the event that a credit company, for example, refuses to cover the loss – and this is what consumers really need. While ID protection services may have a degree of value, they shouldn’t be used as a reason to take an otherwise uncompetitive product.”
Brown continued that consumers could actually take out simple, cost effective measures against ID theft such as buying a shredder and checking credit reports regularly. The National Consumer Council ( http://www.ncc.org.uk/ ) takes a similar approach, advising consumers to avoid becoming a victim of credit card and identity fraud by:
Callcredit states warning signs of identity theft and identity fraud could include:
However, by just incorporating some of the measures above and keeping a regular check on your finances (e.g. don’t activate that second credit card and then put in a box for a year!), a great deal of financial protection is already set in place and you don’t have to pay a penny.
Examples of standard protection within English law encompass:
If your credit card is stolen (or lost), you should be fully protected providing you report the missing credit card within 24 hours of the loss or theft.
If you have never had your credit record checked why not give it a go?