The Internet is helping criminal gangs to coordinate their activities and steal personal details to perpetrate identity fraud.
Financial information firm Experian, headquartered in the United States, was contacted by 2,124 new victims of ID fraud in the second half of 2006, a rise of 69 percent over the same period in 2005.
Experian said this dramatic increase is partly due to the growth of sophisticated criminal gangs that are recruited and managed via the Internet.
"The serious identity fraudster is now e-enabled, IT savvy and anti-social networked," the company claimed.
Mail order companies were hardest hit in terms of fraud volumes, accounting for approximately 60 percent of total cases, while the biggest loses were suffered by credit and store card issuers.
Credit and store card issuers accounted for 28 percent of the total financial losses--at an average cost per case of £1,548 (US$3,060.86)--while loan providers suffered 19 percent of total losses, at an average cost per case £4,797 (US$9,485.11). With an average cost per case of £229 (US$452.80), mail order companies suffered 15 percent of total financial losses.
Experian said that while victims tend not do not bear the financial costs of ID fraud, it is still not a victimless crime. Financial services companies often pass the cost onto consumers while the credit ratings of victims can take time to be corrected.
Top salary earners are four times more likely to be a victim of ID fraud than average while people living in rented accommodation or flatshares are also at greater risk.
London is the U.K.'s fraud capital, according to the Experian figures, with the top 25 locations for ID fraud located within the M25 (motorway encircling London).
Tim Ferguson of Silicon.com reported from London.
Play video
There are currently no comments for this post.