NESTA Crime Online - University of Brighton Repository

penalties for those who make fraudulent applications (for example for passports) are
very small. 49 Identity fraud occurs when the misappropriated identity is actually used in
criminal activity, to obtain goods or services by deception, generally for financial gain.
This is a criminal offence in the UK.
ID theft generally combines online and offline methods. Online methods include stealing
personal information stored in computer databases (using Trojans or hacking); or
through phishing, vishing and pharming (see glossary). Offline methods include
intercepting bills and bank documents from the post and rubbish bins. These techniques
allow cybercriminals to obtain Social Security numbers, bank or credit card account
numbers, phone numbers, addresses, birth dates, usernames and passwords; all
information that criminals can use to perform illicit transactions with another person's
identity. 50 According to CIFAS, the top three false or stolen documents used by
fraudsters attempting identity fraud in 2006 were: utility bills, passports and bank
statements. 51
The full scope of the impact of ID fraud is hard to measure, since this type of crime can
take months to be noticed by the victim and be reported. Available financial
compensation and legislative measures do not account for the cost in recovering the
reputation of the victims (particularly their credit rating). The impact of identity fraud
varies substantially. CIFAS reported that it can take between three and 48 hours of work
for a typical victim to sort out their life and clear their name but in cases of 'total hijack'
where many of their details are stolen it can take 20-30 different organisations, over
200 hours and up to £8,000 to recover from the consequences of the fraud. 52 However,
financial institutions and lending organisations are often considered to be the real
49 Cabinet Office, (2002), “Identity Fraud: a study”, p.4.
50 With even the most basic information, a criminal can either take over another person’s existing financial
accounts or use somebody’s identity to create new ones. Common fraudster activities include withdrawing
funds from your accounts, charging purchases to your credit cards, opening up new telephone accounts or
taking out loans in your name, all of which can have a damaging effect on the victim’s credit rating.
51 CIFAS website: www.cifas.org.uk.
52 See www.cifas.org.uk/.
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