The CPP Group has found that a number of identity fraud exploitations has caused debt to have been accrued under consumers’ identities without their consent or knowledge, with unsecured loans accounting for 17 per cent of all identity fraud cases in March this year.
This figure is up from the eight per cent from January this year, while credit card applications accounted for 20 per cent of identity fraud cases, with both forms of fraud representing ways consumers could end up with debt management problems.
“Once the fraudster has got hold of enough information to commit identity fraud, they approach a number of financial institutions as well as other service providers in a short space of time and then sit back to reap the rewards,” said Danny Harris, identity theft expert at CPP.
Cloning car number plates and opening bank accounts are other forms of identity theft noted by the life assistance company.
CPP has been in the life assistance business for 25 years, according to the company’s website.