MPs warn over identity fraud risk
Updated on 08 October 2008
Bank account holders are more at risk of identity fraud because of the credit crunch, a report has warned.
Fraudsters are finding it more difficult to use fake identities to open accounts and take out loans because of bank belt-tightening, MPs found.
Restrictions on credit are forcing them to target real people instead of using identities, the All Party Parliamentary Group on ID cards said.
They also warn that the 2012 Olympics will present a "golden" opportunity for ID fraud and urge police and Olympic authorities to take action to combat the threat.
Chairman Nigel Evans MP said: "Identity fraudsters are beginning to focus their attention on existing accounts, where previously the focus had been on using fake identities to set up new accounts and take out loans. This ... appears to be a consequence of the credit crunch as many financial institutions begin to take a firmer line on loans, mortgages and overdrafts, forcing criminals to focus on individual accounts which offer a guaranteed financial resource."
He added: "The Games will provide identity fraudsters with a golden period of short-term opportunity to attack. In preparation of this likely threat, co-operation and communication among the UK's police forces and the relevant Olympic bodies will be essential in order to combat it."
Companies will have to deal with many more foreign tourists who do not have chip and pin technology in their credit and bank cards during the games, he said.
That combined with the dangers of "phishing" - where account holders are targeted by emails from fake banks - create a "huge potential" for fraud, the report said.
The report urges ministers to consider whether firms should be required by law to report data loss.
The Home Office estimates ID fraud cost the UK economy £1.7 billion in 2006.
These news feeds are provided by an independent third party and Channel 4 is not responsible or liable to you for the same.
