Bank customers warned over ID fraud

10:40am Wednesday 8th October 2008

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Bank account holders are more at risk of identity fraud because of the credit crunch, a report warns.

Fraudsters are finding it more difficult to use fake identities to open accounts and take out loans because of bank belt-tightening, MPs found.

Restrictions on credit are forcing them to target real people instead of using identities, the All Party Parliamentary Group on ID cards said.

They also warn that the 2012 Olympics will present a "golden" opportunity for ID fraud and urge police and Olympic authorities to take action to combat the threat.

Chairman Nigel Evans MP said: "Identity fraudsters are beginning to focus their attention on existing accounts, where previously the focus had been on using fake identities to set up new accounts and take out loans."

"This... appears to be a consequence of the credit crunch as many financial institutions begin to take a firmer line on loans, mortgages and overdrafts, forcing criminals to focus on individual accounts which offer a guaranteed financial resource."

He added: "The games will provide identity fraudsters with a golden period of short-term opportunity to attack.

"In preparation of this likely threat, co-operation and communication among the UK's police forces and the relevant Olympic bodies will be essential in order to combat it."

Companies will have to deal with many more foreign tourists who do not have chip and pin technology in their credit and bank cards during the games, he said.

That combined with the dangers of "phishing" - where account holders are targeted by emails from fake banks - create a "huge potential" for fraud, the report said.

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