Press Release

FEAR OF ONLINE FRAUD INCREASES FOR CONSUMERS

But new Equifax research suggests that people are taking less precautions against other forms of credit card and ID fraud than a year ago

http://www.equifax.co.uk/idfraudweek

London, 12th October 2009 - To mark the start of 2009 National Identity Fraud Prevention Week, leading ID fraud expert, Equifax, has looked at consumer fears and attitudes towards this invisible and invidious threat. And whilst there seems to be an increased awareness of the fraud risks of online activity, there is a worrying downward trend in other precautions being taken by consumers against credit card and ID fraud.

"It is hard to tell if complacency has kicked in - the 'couldn't happen to me' syndrome - or simply that consumers have had other worries on their minds over the last year, but it seems that people are less worried about ID fraud now than they were a year ago" reported Neil Munroe, External Affairs Director, Equifax. "Whilst the downward trends are relatively small, it is worrying that there hasn't been an increase in actions like shredding and protection of PINs and passwords."

Responses to Equifax's latest survey* reveal that 18% of consumers are now worried about online scams compared to just 14% in 2008. However, fears about identity fraud have dropped from 41% of consumers in 2008 to 35% this year.

PINs and Passwords at risk

Whilst credit card fraud is still a concern for over a third of consumers (36%), curiously, there hasn't been any marked increase in the number of PINs or passwords people use to protect their various credit and store cards.

65% of those surveyed this year claim to have between one and three PINs, with 26% claiming to have four or five and just 8% having 6-10. This compares to 47% of respondents in 2008 saying they have between one and three PINs; 34% having four or five and 15% with 6-10. It seems consumers are streamlining the number of PINs they have to remember - but this could put them at greater risk of fraud, especially as in 27% of cases they say they note PINs and passwords down somewhere.

Protecting their finances and identity when transacting online also seems to be a low priority for nearly half of consumers, with a staggering 47% of respondents saying that they have up to just 3 passwords for their online accounts, tending to use the same one for a number of accounts.

A downward trend in taking precautions

"When it comes to protecting themselves from fraud, people appear to be slightly less likely to take precautions than they did in 2008", continued Neil Munroe. "For instance 79% of consumers said they shredded their documents last year but this had dropped to 77% this year. And whilst this is a small drop it is certainly a trend going in the wrong direction if people want to ensure that their personal and financial details can't be grabbed by organised or opportunistic fraudsters rummaging through rubbish bins and bags."

Also of concern is the amount of personal information carried around by people in their wallets or handbags all the time. 80% of consumers keep all their credit and debit cards in their wallet, with 60% also carrying their driving licence and 21% holding onto recent credit card receipts. The combination of these items could give fraudsters a relatively easy way to steal someone's identity or take over credit card accounts.

10% also admit to keeping PINs, passwords or bank account numbers on their mobile phones and these are also prime targets for organised fraudsters.

"It is very likely that the recession has made consumers focus more on their immediate finances rather than thinking about the broader fraud risks" concluded Neil Munroe. "But it is precisely at this time that fraudsters are looking for the opportunities - and if you are hit by ID fraud, with the heightened focus on an individual's credit status, this could have a seriously detrimental effect on your ability to get new credit or loans in the short-term.

"78% of respondents to our survey said they understand the impact ID fraud can have on their credit rating, but these findings do seem to suggest that many are leaving themselves open to fraudsters. And with 29% of victims saying it took longer than three months to rectify their finances, this highlights just how important it is for consumers to continue protecting themselves and their personal information from the risks of fraud."

Equifax is supporting National Identity Fraud Prevention Week which runs from 12th - 18th October 2009. Additional information can be found by visiting www.stop-idfraud.co.uk

National Identity Fraud Prevention Week 2009 is supported by: the Metropolitan Police, Fellowes, National Fraud Authority, Federation of Small Businesses, Equifax, CIFAS - The UK's Fraud Prevention Service, Association of Chief Police Officers, the Home Office's Identity and Passport Service, British Chambers of Commerce, British Retail Consortium and the Royal Mail.

ENDS

*Survey of 803 consumers conducted by Equifax September 2009
**Survey of 539 consumers conducted by Equifax 2008

For further press information please contact: Elinor Puzey, Louise Fowler, Cecile Stearn or Wendy Harrison at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: elinor@harrisonsadler.com