A QUARTER of British adults have been victims of identity theft or know someone who has had their ID stolen, according to a report.

An identity theft takes place every four minutes and costs the country an estimated £1.3 billion a year. It is one of the fastest-growing crimes in Britain.

Which?, formerly the Consumers’ Association, has found that two thirds of people are worried about identity fraud which, for victims, can be a harrowing experience.

Malcolm Coles, editor of Which? magazine, volunteered to let one of his researchers steal his ID. “I couldn’t believe how easy it was for someone else to assume my identity,” he said.

Within a short time, the researcher had obtained Mr Coles’s birth certificate, mother’s maiden name, mortgage value, medical data and details of his shopping habits and his gym visits.

“If this is what an amateur can do, imagine how easy it is for an experienced criminal,” Mr Coles said.

New technology and the internet have opened up new criminal industries. One frequently attempted ID fraud involves sending an email containing a virus that can be used by hackers to give access to sensitive information.

Another is a “phishing” e-mail which looks like a legitimate messages from a bank asking for security details.

Some thieves make bogus phone calls posing as bank employees requesting passwords and PINs. Others employ electronic techniques, known as “skimming”, to read credit-card strips to clone cards or shop online. Some criminals rifle through bins to find discarded bank statements and bills.

Jill Stevens, director of consumer affairs at Experian, a credit reference agency, said: “People have not woken up to the fact that information is the new cash and they have to look after personal information as if it was as precious as the contents of their wallet. Never give personal information to someone unless you are sure you know who they are and check your credit file regularly.”

Bill Torrance, 80, a retired consulting engineer from Grangemouth, on the Firth of Forth, fell victim to identity theft when fraudsters successfully applied for a Capital One credit card in his name.

“I gave two lodgers a key to my house and when I was away they stole an electricity bill and a bank statement,” he said. “They used these two documents to impersonate me and wrote a letter to Capital One informing it that I had moved house. Capital One sent a credit card to the address that they gave.”

He added: “These fraudsters are very clever and it is easy for them to commit this crime. It is easier to get a credit card than a fish supper — you have to queue up for a fish supper.”

Identity theft increased by 29 per cent in the past year according to figures released by the Credit Industry Fraud Prevention Service.

The Government believes that ID cards will help to combat it. Which? found that 70 per cent of people were in favour of the ID card scheme. Support dropped to just 31 per cent when consumers were told that there would be a £35 fee.

The Financial Services Authority, the City watchdog, acknowledges that the legal and regulatory regime needs to be changed.

Mr Coles said: “Even a simple step taken by the industry to stop accepting mother’s maiden name and place of birth as default passwords would be a good start, as it’s too easy for fraudsters to get hold of basic information, which is where the process of stealing an identity begins.”

Which? conducted 975 face-to-face interviews in October.

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