Some people who have been the victims of identity theft have found themselves being blacklisted for credit, it has been noted.
Emma Holyer, a spokeswoman for financial firm LV=, revealed that consumers can experience debt management problems as a result of fraudulent activity on their accounts.
“You could find yourself in a situation where no-one will want to deal with you â€¦ the cost of ID fraud to you personally can be quite significant,” she remarked.
She urged people to contact credit reference agencies if they suspect that their rating has been affected by such crime, advising that borrowers can obtain their own credit reports relatively cheaply.
Ms Holyer warned that the main source of identity theft is the internet, through scams such as phishing emails that pretend to be from a trusted source.
LV= has predicted that the amount of Britons whose credit rating has been damaged by fraud will double over the coming five years.
By Jamie Price