Don't fall victim to this massive scam

Incidents of this scam have risen almost 20%. Check out these 18 ways to avoid becoming a victim.

Despite repeated warnings about ID fraud, this scam is getting worse and claiming more victims.

I know it's a rather unnerving prospect. But we all need to take a few basic precautions to reduce the risk of being targeted by fraudsters. I'll get to that in a moment. But first let's take a look at how big a problem ID fraud really is.

How bad is ID fraud?

It's a really worrying statistic that there have already been 59,650 proven frauds in the first quarter of 2010. That's according to CIFAS - the UK's Fraud Prevention Service.

Identify fraud involves using a stolen identity - or, in some cases, a false identity - to obtain goods or services. Incidents of this type of scam are in fact almost 20% higher in the first three months of 2010, compared with the same period in 2009.

The number of victims of impersonation has also continued to rise. There were nearly 27,000 victims over the same three month period - that's an increase of just over 6,000 (22.86%).

It's time to fight back against the fraudsters

But you can radically reduce your chances of falling victim to ID fraud by taking some preventative action now. Take a look at my top 18 ways to protect yourself now:

Online safety

1. When you enter your personal details online make sure the website you're using is safe by checking the URL in the address bar says 'https' and not just 'http'. The 's' stands for secure. Only use websites you're familiar with and trust.

2. Beware of 'phishing' emails which ask you to provide your personal details. All sorts of scams are appearing designed to extract information from you which can then be used to steal your identity. Phishing emails often look genuine so be extra vigilant.

3. Make sure your computer has an up-to-date firewall and is protected by anti-spyware and anti-virus software. This will help to protect you from scam emails and viruses.

4. Don't open email attachments or click links in emails unless they're sent from someone you know. Your bank will never ask you to provide personal or financial information by email, so don't do it.

5. If you use social networking sites, be very careful about the personal information you make public. Keep it to a minimum and activate privacy settings.

6. Never share your passwords with anyone else. Change passwords regularly as an added precaution.

My post

7. When you move home, redirect your post for a minimum of six months. You can arrange this at any post office or at the Royal Mail website Remember the new occupant of your previous address isn't obliged to forward your post on.

8. Watch out for regular statements or bills that fail to arrive. This could be a sign that your post has been intercepted. If letters you're expecting don't turn up, contact the sender to find out why.

9. Make sure your post can be put through the letterbox properly, and can't be taken from someone outside your home.

10. Be even more careful if you live in a shared property where others could take your post. If you think your post is being stolen, contact Royal Mail immediately.

11. Shred any post or other paperwork which contains your personal information before you throw it away.

My bank account

12. Always check your bank and credit card statements for transactions you don't recognise.

13. Never tell anyone your PIN numbers or security details for any of your cards or accounts.

14. If you have been fraud victim, always notify your bank even if they aren't involved. They will be able pay particular attention to your accounts and monitor activity closely.

My credit report

15. Check your credit report regularly. Look out for activity such as applications for credit and new accounts being opened which you haven't done yourself. If a lender or debt collector contacts you about an account or debt that is not yours, take it up with them immediately. You can get a free credit report from Experian here.

16. If you have been turned down for credit, check your credit report again. It could be an indication that your record has been damaged as a result of fraudulent activity.

17. If you think you may have been targeted by fraudsters, notify a credit reference agency - choose Experian, Equifax or Callcredit. The agency will be able to identify the fraudulent activities for you and then deal with the companies involved on your behalf.

Finally, what if I do fall victim to ID fraud...

18. If you become a victim of ID fraud, or you think you may be at risk, it's a good idea to think about paying for a CIFAS Protective Registration. Lenders (who are CIFAS members) will get an alert every time a credit application is received in your name so it can be dealt with even more carefully than usual. This service costs £14.10 a yesr inlcuding VAT and is far better value for money than ID fraud protection. Find out why here.

This is a classic lovemoney.com article which has been updated for 2010.

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