How fraudsters steal your identity, and how there's been leap in the number of ID fraud cases

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According to the latest report from Experian's Victims of Fraud service, which provides free advice and helps to mend the damage caused by fraudsters, the number of cases reported to them increased by 67 per cent during 2007.

Identity fraud takes place when criminals get hold of enough of your personal data to impersonate you, borrowing money and running up bills in your name.

With detailed records dating back to July 2003, Victims of Fraud have now amassed a database that shows who is most likely to be hit, where they live and how the fraudsters do it.

What they need

It's amazing how little information a criminal needs to steal your identity. These are some of the most commonly-used items:

• A piece of intercepted direct mail - it can be enough to set up a catalogue or credit card account
• A bank or credit card statement carelessly thrown away
• Your full name, date of birth and address - data you are likely to carry in your wallet every day on items such as your driving licence
• Personal details including the names and dates of birth of your children that are often revealed on social networking sites and are frequently used as passwords and PINs
• An innocent response to a phishing e-mail or an entry in a fake website

Who they target

Predictably, the Victims of Fraud data shows that ID fraudsters target affluent people - corporate top dogs and company directors at the height of their careers are almost three times more likely than average to have their identities stolen because they are so much more profitable.

At the other end of the scale, young people who rent their homes, often in major cities, are also at risk, especially if they are in local authority or housing association accommodation. These groups are twice as likely as the average to have their identities stolen.

London is the country's ID fraud hotspot, with affluent commuter towns such as St Albans, Guildford and Windsor following closely behind.

How they do it

The post is the most vulnerable area of your life, where ID fraud is concerned.

The crooks' top choice of method is to forward your mail to a collection address - this was the cause of 36 per cent of identity frauds.

In second place, with 30 per cent of cases, comes present address fraud, in which someone living at the same address - often flats with communal postal delivery areas - steals your post. Previous frauds, when the criminal uses your name and a previous address to take over your ID, account for 24 per cent of cases.

Other popular cons involve:

• Forwarding your mail to a new address
• Taking over credit and bank accounts
• Stealing your belongings
• Tenancy fraud, where the tenant uses the landlord's details to borrow money
• Jackal fraud, when the criminal uses personal details of a dead person
• Card not present fraud - someone who has got hold of your credit or debit card details but not the card uses it on the Internet or over the phone

How to stop them

One precaution against identity fraud is so effective that it is recommended by the Home Office - they suggest that you check your credit report regularly.