The top ten UK fraud hotspots

We reveal which areas are the worst for identity fraud and how to protect yourself...

Recent research from Experian has revealed that fraudulent applications for credit and other financial services jumped by 11% in 2010, compared to 2009.

What’s more, fraudsters have become increasingly cunning by targeting current accounts as a gateway to try to gain access to more lucrative credit card and loan fraud.

Indeed, Experian’s research revealed that attempted credit card fraud levels reached 19 in every 10,000 applications in 2010, with identity fraudsters accounting for more than 80% of attempts.

There was also an increase in attempted loan fraud, reaching seven in every 10,000 applications, with identity fraudsters responsible for 60% of these cases.

So just where are the worst fraud areas of the UK?

Here’s the top ten.

The ten UK fraud hotspots

Source: Experian

Perhaps unsurprisingly, the Experian report put London as the identity fraud capital of the UK – with seven London areas appearing in the top ten. However, there is new evidence that suggests identity fraudsters are moving westwards out of London, targeting commuter areas such as Reading, High Wycombe and Basingstoke.

Who is most at risk?

The Experian report also revealed that fraudsters are focused on targeting those who flat-share or rent their homes, those with generous disposable income and individuals whose wealth makes them a key overall target.

In contrast, those least likely to become ID fraud victims are those whose circumstances make them less accessible to criminals.

For example, over 65s who have made an effort to distance themselves from cities, and the large numbers of pensioners who can no longer take part in high levels of physical activity are all four times less likely to be a victim of ID fraud.

Protect yourself

However, no matter where you live or who you are, you can never be completely excluded from the risk of ID fraud. So even if you’re a 70 year old living in a tiny village in Cornwall, there are still measures you can take to lower your chances of becoming a victim of ID fraud.

Take a look at the following:

1. Always hide your PIN

Whenever you’re entering your PIN into an ATM or Chip and PIN device, always keep it covered from prying eyes and hidden cameras.

Also ensure you never write down your PIN and don’t make it something obvious like your birthday or 1234.

2. Check bank statements carefully

It’s a good idea to check your bank statement on a regular basis to keep an eye out for any unusual transactions.

Fortunately, checking your transactions is really easy with the lovemoney.com free spend-tracking tool, Tracker. This amalgamates information from all your different providers, allowing you to see all your different statements at a single glance, with a single log-in.

So every time you visit lovemoney.com, you can quickly log into Tracker and check your accounts!

3. Shred unwanted documents

Always shred unwanted personal documents such as bank statements, old credit card bills, utility bills, and any other documents that highlight your name and address. It’s also worth shredding receipts as these can be valuable to fraudsters.

You can usually pick up shredders very cheaply. This one from Argos is only £10.99.

4. Check your credit record

It’s worth checking your credit rating from time to time to ensure everything on it is correct and you’ll also be able to see whether anyone has been trying to use your ID. Doing this means you can nip any problems in the bud early on.

You can sign up to a free credit report from Experian – just remember to cancel your membership before the 30-day trial period is up to avoid being charged in the future.

5. Be careful on social networking sites

Be very careful what you say on social networking sites such as Twitter and Facebook. Many people include information such as their full date of birth, where they live, their phone number and their employer. And sometimes they will even state when they are on holiday.

However, criminals can use this information to steal your identity and take out financial products in your name. What’s more, if you’re advertising the fact that your house is empty, and you’ve included your address, you’re simply inviting burglars in!

So keep information on these websites to a minimum and keep your security settings high.

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6. Redirect all post to new address

If you’re moving house, always ensure you’ve asked Royal Mail to redirect your post. That way, it won’t end up sitting at your old address where criminals can get hold of it (particularly if you had a shared entrance or mail box at your previous home).

And always keep your bank and other financial institutions updated with your new address.

7. Be careful with your mobile phone

If you have a smartphone, be very careful about how much personal information you store on it. Always use the PIN function on your handset and clear the browser history after using.

And if you’re selling on your phone or recycling it, ensure you’ve deleted all personal details from the phone and SIM card beforehand.

Find out more in The smart new way scammers steal your cash.

8. Watch out for phishing emails

Watch out for emails that appear to be from your bank or other financial institutions asking you to reset or confirm your security details, often by clicking on a link.

Remember, your bank will never ask for your personal details so always delete emails like this and don’t click on any links.

9. Stay safe shopping online

If you regularly shop online, ensure the website displays the padlock symbol in the browser and that the website address starts with ‘https’ rather than ‘http’ to signify it’s secure before you pay for anything.

10. Don’t let your cards out of your sight

Never let your debit and credit cards out of your sight. If you’re paying in a restaurant, the waiter may try to walk away with your card – don’t let ‘em! I am by no means saying that waiters are untrustworthy, but if your card gets into the wrong hands, it’ll be easy to make a copy of your card details without you realising.

More: 10 ways you didn’t know your identity was at risk | Not just any scam - this is an M&S scam