Britain has logged a record 89,000 cases of identity theft in first six months of this year, almost all of them online, according to the Credit Industry Fraud Avoidance System chaired by Lady Barbara Judge (pictured).

The 89,000 identity frauds represent a 5% increase on last year. 83% of identity frauds were perpetrated online. Identity fraud now accounts for 56% of all fraud reported by members of the lenders' organisation.

There has been a sharp rise in identity fraudsters applying for loans, online retail, telecoms and insurance products. Although the number of attempts at identity fraud against bank accounts and plastic cards has fallen, these still account for more than half of all identity fraud cases.  

The vast majority of identity fraud happens when a fraudster pretends to be an innocent individual who wants to buy a product or take out a loan. Victims whose names are being used do not even realise that they have been targeted until the bills start to arrive or they experience problems with their credit ratings. To carry out this kind of fraud successfully, a fraudster needs access to his victim’s personal information, e.g. name, date of birth, address and bank details. They acquire this data in a variety of ways, from stealing mail through to hacking; obtaining data on the ‘dark web’; exploiting personal information on social media, or though ‘social engineering’ where innocent parties are persuaded to give up personal information to people pretending to be from their banks, the police or trusted retailers.

CIFAS believes that identity fraud has now reached "epidemic levels," with identities being stolen at a rate of almost 500 a day. The frauds are taking place almost exclusively online. Relationship managers are advised to encourage their HNW clients to avoid giving out details on social media.