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More than 70 per cent of adults in the UK say that fears of identity theft are changing their online behaviour, which could impact on future e-commerce revenues. 

According to a new survey, almost two thirds of consumers in the UK believe businesses should take more responsibility for protecting their personal details online.

Almost 84 per cent of respondents said that their trust in an organisation’s ability to protect their personal details dictated who they interacted with the most online.

The results reveal that online identity theft remains a major concern for consumers, which is not surprising considering that more than 170,000 cases of identity theft have been reported in the past 18 months.

Please note that identify theft can also affect your credit rating and that might damages your chances of getting much needed financial services such as a secured loan or a mortgage.

However, consumers still need to be convinced that rigorous steps are being taken by their banks to ensure their data is protected and that security is at the top of the agenda.

Banks, credit card companies and the Government are, to some extent, looking to further combat online identity theft and an area that needs urgent attention is breach notification laws.

This creates an additional need for organisations to not only do everything they can to minimise online fraud, but also to show transparency in their efforts.

Peter Gerrard, head of insurance research at moneysupermarket.com, said: “With the shocking news of 25 million people potentially having their personal and banking details in the hands of criminals, consumers need to consider how they can protect themselves.

There are a number of identity theft products on the market. Some of these are stand alone and some come bundled (often at extra cost) with other products, including home insurance, credit cards and current accounts.

Many of these products are dubious value for money. Most will cover losses if fraudulent transactions take place. However, if consumers are vigilant and report any unusual activity to their bank or card provider these losses will be covered by the provider as a matter of course anyway.

Other policies will provide credit reports and fraud alerts. Whilst these are useful they are no substitute for account holders being vigilant – for example by checking statements regularly.

The real cost of having your identity stolen or cloned is the time, stress and effort it takes to resolve the situation. Clearing your name and credit record, closing compromised accounts and opening new ones, as well as freeing up any cash that may be locked in compromised accounts often takes a huge toll on people. Also during the time it takes to clear up any records lenders may not be willing to provide you with competitive deals on things like secured loans.

Identity theft cost the UK economy £1.5 billion in 2005. To protect yourself from identity fraud a number of precautions can be taken and it is very important to organise an identity theft insurance package from your bank. Most high street banks will offer this when you first open an account.

Always check that the ATM’s you use are secure and in perfect condition and never give your credit card details to an unregistered website when purchasing items. Many payment facilities including PayPal have been set up to avoid this. Protecting yourself from identity theft is protecting your money and your right to privacy of information.

The author of this article is Melinda Varley who is an experienced journalist specialising in writing about financial matters. She has held several positions for magazines and newspapers and has written hard copy and for online audiences, both in the UK and in her homeland of Australia.

This article does not represent ‘financial advice’ as each person's individual requirements will be unique to their needs. If there is something in the article which you wish to rely on then please check those details with the person with whom you arrange secured loans, remortgages or other financial services.

The views in this article represent those of the author and not those of Netbasic Limited.