Identity fraud costing the UK £2.7bn a year

Identity fraud affects over 1.8 million people a year at a cost of £2.7bn, according to new figures from the National Fraud Authority (NFA).

The average loss per person is around £1,000, and a total of £1.9bn finds its way into the hands of the fraudsters.

Today marks the start of National Identity Fraud Prevention Week, which seeks to raise awareness of the problem.

Hackers or identity thieves use the stolen accounts to buy a range of goods and services in their victims' names, and launder the identities through activities including people trafficking and terrorism.

"Stolen and false identities are a significant enabler of crime, and this issue demands a co-ordinated response across government and the private sector, " said Bernard Herdan, chief executive of the NFA.

"The work we've undertaken has allowed us to gain a better understanding of the issue of identity crime. We are now working actively with our partners to improve the UK's response to identity-related crime and help reduce its devastating impact."

The NFA said that it typically takes victims of identity fraud as long as 200 man hours to "repair the damage".

Citizens are urged never to throw away documents containing personal details without shredding them first, and to make sure that personal computers have the latest anti-virus and security software installed.

Other recommendations include regularly checking credit reports, and chasing up missing statements or correspondence from a bank.

Research carried out by Fellowes to support the report found that just seven per cent of UK citizens believe that their data is secure when it is in the hands of a third party, while 94 per cent feel at risk from identity fraud.

However, unlike the NFA, Fellowes believes that businesses should do more to prevent data leaks.