Worried about the safety of your personal data?


| Created: 10/01/2008 |

Two computer disks containing the personal details of every parent who receives child benefit have gone missing, en route between HMRC and the National Audit Office. The disks included the names, addresses, dates of birth, national insurance numbers, child benefit numbers and bank accounts of 25 million people. Although the HMRC and the Government say that there is no evidence that the disks have got into the wrong hands, if they did then all 25 million people would be vulnerable to identity fraud.

Also in recent weeks, data breaches have been reported by organisations as diverse as Standard Life and Next in addition to other government agencies. This is a wake-up call to many people, including rate tarts who are likely to have more relationships with financial organisations than other consumers as we open up multiple credit cards.

It is hardly surprising that recent research reveals that many of us do not trust big institutions to keep our personal information safe. The Canvasse Opinion survey found that 34% of us do not trust insurance companies, 33 per cent think Internet retailers aren't secure and 32% believe that government cannot be relied on to safeguard the data that can be used to impersonate us, borrow money in our names - and make life very difficult for us.

If you think you could be at risk, take these simple precautions as soon as possible.

1. Check your bank and credit card statements carefully. With your account data and basic personal information, criminals could try to get hold of your money. If you spot any unfamiliar transactions, tell your bank or lender immediately and explain the circumstances.

2. Ensure that your bank and credit card account passwords do not relate to the data that could be compromised e.g. your child's date of birth. Many of us tend to use details such as children's names and memorable dates as passwords to protect our bank and credit card accounts. Fraudsters are likely to make a good guess at these passwords which will give them access to your finances for further theft and much more. Make sure you update your passwords on a regular basis and use unique words that do not relate to data that could be compromised in a data breach.

3. Minimise the information you post on social networking sites. Organised gangs are now focusing on ID fraud as a profit centre and they know that many people give away useful snippets that could be passwords or key dates giving access to your bank and card accounts. Edit out the names of pets, mother's maiden name, where you went to school and anything else you might use as a password or PIN.

4. Watch out for hoax calls, letters or e-mails. Taking advantage of your distress in the wake of a data breach, criminals may call, e-mail or write pretending to need further information in order to protect you. In fact, they are simply trying to gather the additional information they need in order to access your accounts, so don't give away information to people you do not know. Check with organisations that might have a genuine reason for contacting you before you part with your data. In short, never give any security details to an incoming caller. Always call back an organisation on a number you know and trust before giving any security information over the phone.

5. Minimise the number of accounts you have open. The more accounts you have and the more correspondence you receive in connection with them, then the higher the chance that one could be intercepted and compromised. Rate tarts use many credit cards and it can be easy to leave unused cards open. It is sensible to close down an unused credit cards to minimise this risk.

6. Look at your credit report. The information in the Child Benefit Agency records is enough for a criminal to apply for loans, credit cards and even mortgages in your name - as well as other forms of credit such as mobile telephone and catalogue accounts. Your credit report lists all your credit commitments and recent applications for credit, so you can instantly see if someone has been trying to use your ID and put a stop to problems before they can develop.

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