What would you do if your credit cards were stolen? Or if goods that you did not purchase were charged to your credit accounts? Or if unauthorised credit accounts were opened in your name?

These are typical examples of identity fraud, where criminals use the identities of others in order to take over their credit accounts or to open new accounts in their names.

Most of us have never experienced identity fraud and many of us may be unconcerned and believe we're not affected by it. But we are.

Identity fraud is the UK's fastest growing crime. According to the Cabinet Office, identity fraud costs the UK at least £1.3 billion every year and is one of the more difficult frauds to combat. Although lenders are employing more sophisticated methods to spot fraudsters, people who are targeted often take up to 14 months to realise they are victims of identity fraud.

When criminals buy goods and services on credit using false information, we all pay through higher prices and more expensive credit terms, even if our own accounts are untouched. And when someone is victimised by a particularly successful scam, criminals are more likely to continue cheating others using similar fraudulent operations.

Here are some typical cases of identity fraud:

The "Nigerian" scam

Here, the fraudsters send e-mails to people telling them that they can release a fortune that is tied up in an African bank by allowing them to transfer the money into the person's account. In return, the person will be given a share of the profits.

Another variation on this is an e-mail supposedly from the widow of a high-ranking government official pleading for the recipient to help her access her late husband's money. Again, the recipient is asked for their bank details.

The catch with these scams is, of course, that rather than money going into the person's bank account, the fraudsters clean out them out using the details sent to them.

Phishing

This form of fraud has made headlines recently, with Barclays, Lloyds TSB, Natwest and even the Bank of England affected.