70% rise in identity fraud cases

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Credit expert Experian said between July and December last year, 2,124 people contacted its service for victims of fraud for the first time, up 69% on the second half of 2005.

The hike coincided with a rise in organised criminal gangs operating global identity fraud rings, the information services firm said.

Research found that for the first time, fraudsters are now more likely to target a victim by using their current address, rather than a previous address.

Experian said present address fraud, which requires sophisticated methods involving mail interception or redirection, accounted for 45% of all cases reported in the second half of last year.

London remains the identity fraud capital of the UK, with all of the top 25 at-risk areas located within the M25.

People living in the capital are on average two-and-a-half times more likely to be hit by identity crime than those elsewhere.

Top-salaried professionals - directors and business owners - are the prime targets for fraudsters. Research found that they are almost four times more likely to fall victim than the average UK resident.

Young singles and flatsharers who rent also have an elevated risk of being targeted.

Of those hit, almost half were unaware that they were victims until contacted by a financial services company, with 41% finding out when they obtained a copy of their credit report.