Identity fraud might sound like something that happens to other people, but the reality is it’s one of the fastest-growing crimes in the UK — and it can happen to anyone. Whether you’re running a business, working from home, or just shopping online, fraudsters are constantly looking for ways to steal personal details and use them for their own gain.
The scale of the problem
The statistics are sobering. According to Cifas, the UK’s fraud prevention service, there were more than 277,000 cases of identity fraud in 2023 — that’s one every two minutes. And the trend isn’t slowing down: online activity, hybrid working, and our ever-increasing reliance on digital services give criminals more opportunities than ever.
What’s more, identity fraud doesn’t just affect individuals. Businesses are prime targets too. Criminals use stolen details to open bank accounts, take out loans, or even apply for jobs. The financial and reputational damage can be severe. For individuals, the impact is often stressful and time-consuming, sometimes taking months to sort out.
How identity fraud works
Fraudsters don’t need much to get started. A name, date of birth, address, or bank detail can be enough to build a false identity. They gather this information in different ways, including:
- Phishing emails or texts: Messages designed to trick you into giving away personal details.
- Data breaches: Hackers targeting companies and leaking customer details online.
- Social media: Oversharing birthdays, locations, or family details that can be pieced together.
- Old-fashioned theft: Stealing post, discarded documents, or even wallets.
Once they have enough, criminals can impersonate you to apply for credit, drain your bank account, or carry out scams in your name.
Spotting the warning signs
Identity fraud is often invisible until the damage is done. But there are warning signs to watch out for:
- Unexpected letters, emails or calls about accounts you don’t recognise.
- Bills or statements for services you never signed up for.
- Credit refusals despite having a good history.
- Bank transactions that don’t look right.
- Post that seems to be going missing.
Being alert to these early indicators can save a lot of stress later.
Practical tips to protect yourself
The good news? There are plenty of simple steps you can take to reduce the risk:
- Be careful with your data
Think twice before sharing personal information online. Don’t publish details like your full birthdate or address on social media. In business, make sure sensitive documents are stored securely, not left on desks or in bins.
- Shred, don’t bin
Physical paperwork is still a goldmine for fraudsters. Shred old bank statements, bills, and anything else containing personal details before disposal.
- Strengthen your passwords
Use strong, unique passwords for every account. A mix of letters, numbers and symbols makes them harder to crack. Better still, use a password manager to keep track securely.
- Enable two-factor authentication (2FA)
Adding an extra step — like a code sent to your phone — makes it much harder for fraudsters to get into your accounts, even if they’ve stolen your password.
- Stay wary of phishing
Be cautious with emails or texts that urge immediate action. Look closely at sender addresses, and don’t click suspicious links. If in doubt, go directly to the official website instead of following a link.
- Check your credit report
Services like Experian, Equifax, or TransUnion let you monitor your credit history. Checking regularly means you can spot unusual activity quickly, such as applications you didn’t make.
- Redirect your post
If you move house, set up a Royal Mail redirect. Unsecured post is one of the simplest ways for fraudsters to get their hands on sensitive information.
For businesses: protect your people too
If you’re responsible for staff, remember that identity fraud isn’t just a personal issue — it’s a workplace one too. Encourage employees to use secure passwords and company-approved systems, especially when working remotely. Provide clear policies for handling customer data, and invest in secure document destruction to prevent sensitive information leaking into the wrong hands.
What to do if you’re a victim
If you suspect you’ve been targeted, act quickly:
- Contact your bank immediately to flag any suspicious activity.
- Report the fraud to Action Fraud (the UK’s national reporting centre).
- Place a fraud alert on your credit file with a credit reference agency.
- Change your passwords on all affected accounts.
Acting fast can limit the damage and stop fraudsters in their tracks.
Staying one step ahead
The truth is, identity fraud is unlikely to disappear. As technology evolves, so do the tricks criminals use. But by staying informed and building good habits, you can make yourself — and your business — a much harder target.
At its heart, protecting against ID fraud is about awareness and vigilance. Shred that old document, pause before you click, keep your passwords strong, and don’t ignore the warning signs. It’s not about living in fear — it’s about being smart, prepared, and one step ahead.
So, as we continue to live and work in an increasingly digital world, take a moment to check your own habits. Small changes today can make a big difference tomorrow — and could save you the time, money, and stress of becoming just another statistic.