NCC calls for support for ID theft centre

The National Consumer Council (NCC), which has identified serious deficiencies in the help victims of identity (ID) theft are given, said an advice centre should be set up.

The independent consumer watchdog said this will reverse the current situation where the majority of the burden is on the victim alone to sort out the mess created by the fraudster.

"What is needed is a one-stop shop were people can get all the advice and help they need under one roof," the NCC said.

Identity theft is one of the fastest growing crimes around the world. A report from CIFAS, the UK's fraud prevention service, showed that during the first three months of this year, there had been an increase of 17 per cent in ID frauds; this represents 16,077 victims of impersonation.

But the NCC recently highlighted some shocking flaws in how the UK system deals with this crime. According to the independent consumer organisation, the root of the individual's problem in resolving ID theft is a legal one.

Under law, it is the company or other organisations that have been defrauded by criminals using false identities that are considered the victim of identity fraud - not the person whose name and personal details that have been stolen.

As a result, the police often refuse to give victims crime reference numbers - making it even harder for them to prove their identity.

The Association of Chief Police Officers (ACPO) explained: "It is not a criminal offence to have someone's personal details. The crime is when this key information is used to defraud others."

The NCC pointed out that often the police don't have the resources to deal with the consumer element of there crimes

Because ID theft is a rapidly growing problem, a slew of companies and financial institutions have started offering consumers ID theft insurance. Many banks offer this free but some are paid for services; BT launched an ID theft insurance package earlier this year.

But these, according to consumer organisations do little to help the consumer who has had their identity stolen and are not worth the money.

Consumer watchdog Which? which went as far as to say companies were cashing i n on consumer fears and this insurance was "inspired marketing". It said the products that are offered to little to help a consumer out of this problem and are therefore  "almost worthless".

It explained that the only things these products usually cover are expenses, such as postage. The advice they give can be got free from places such as Citizens Advice Bureau. They do not contact the various agencies needed to clear a person's name.

Which? pointed out most financial loses from bank accounts and credit cards are covered by the Banking Code and the Consumer Credit Act so.

"Unless you were the victim of horrendous ID theft, your expenses won't be that much and you have to do the legwork anyway to put things right," Which? said.

The NCC said it wasn't against insurance in principle but agreed this insurance is not the answer to the problem. A spokeswoman said these products don't go far enough in addressing the problem of helping people clear their name. They will also be too expensive in the long run for many consumers.

It plans to model the proposed centre on the US Identity Theft Assistance Center (ITAC). This initiative financed by the US financial services industry, offers a free victim support service.

A case worker helps each victim find any suspicious activity on his or her credit report, notifies the affected creditors on the victim's behalf, places fraud alerts with credit bureaux, and provides all the necessary documentation and check-lists for the victims to clear their name.