Low Credit Score 'Could Be Result Of ID Theft'

Low credit scores and blacklisting could be down to ID theft, which a new study has revealed could be set to increase.

The research done by a leading online insurance provider has found that the number of people whose rating could be affected by the crime is "likely to almost double" in the next half-decade.

It revealed that nearly half of respondents had experienced a problem with their credit – of this number, over a quarter blame wrongly assumed identity and almost a third said they had no idea why they had encountered a problem. Investigating these instances "further" has been advised by the financial organisation.

"Our research shows that an unfair credit rating is a common problem for many and, more worryingly, identity fraud is likely to rise sharply in the coming years," managing director of home insurance at the firm commented.

"In the last ten years we've seen a massive increase in the number of people targeted by fraudsters, illustrating the importance of vigilance in protecting personal information and monitoring for any problems that might prove to be a 'symptom' of identity theft."

He also said his organisation has set up a helpline, which is free to use for all of its customers. The helpline is staffed by specially trained expert advisers who will explain what people can do if they think they have been a victim of identity fraud.

The firm is warning people that if they believe they have been refused credit unreasonably, they should investigate it further. It could be a sign that they have become a victim of identity theft.

In the past decade identity fraud cases have rocketed, rising on average by a third annually for the past eight years. The research also reveals that victims of identity fraud face costs of over £2,000 to clear their name.

The findings follow a recent report by internet security company Unisys, which said nearly three quarters of people were more worried about being harmed by this type of criminal activity during the recession.

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