YORK, England, November 17, 2010 /PRNewswire/ -- Identity thieves have devalued the credit ratings of thousands of unsuspecting Brits according to a new study.
The study commissioned by life assistance company CPP reveals that nearly 900,000 people (1) have had their credit rating unfairly damaged by fraudsters.
The report reveals the true extent that identity thieves wreak on their victims. Nearly half of people (48%) said it cost them financially, with the monetary repercussions averaging over GBP7,000, enough to put many people in serious financial difficulty. Costs included individuals losing out on low interest credit cards and loans (48 per cent), refused a mortgage (20 per cent) and lost earnings (10 per cent) whilst one in twenty (5 per cent) had to pay legal fees.
The nightmare doesn't stop at financial costs. On average it takes over 400 days - nearly 14 months to get a damaged credit file back to health with half of Brits (50 per cent) either not ever getting the problem resolved, or not knowing if their credit status is back on track.
With the cost and time hitting victims hard, it isn't surprising that it has an emotional impact. The report also revealed over half had suffered high levels of stress, strained personal relationships (41 per cent) sleepless nights (35 per cent) and having to take time off work (7 per cent).
But it's clear that consumer ignorance is playing a role in helping identity thieves go undetected. The vast majority have no qualms supplying their personal data online, including names, dates of birth and addresses, where it can be accessed by millions.
And when their personal details were swiped, many people didn't know how to resolve a poor credit rating, which is one of the consequences of identity fraud. Even if they did, they said it was time consuming, expensive and complicated to do so. Only one in 20 (4 per cent) review their credit report on a monthly basis as recommended by experts and half of people admit they have never checked their credit report. Four per cent admitted they didn't even know what a credit report is.
Worryingly, the majority of people only found out they had a bad credit rating when they applied for a mortgage, loan or credit card.
The findings come as CPP warns consumers to take control of their identities by regularly checking their credit reports and guarding their personal information against identity thieves.
Nicole Sanders, identity fraud expert from CPP said: "It is clear consumers need to wake up to the fact that identity thieves are out there. In October, the National Fraud Authority estimated that identity fraud affects over 1.8 million people every year. Stolen identities are used to obtain a wide range of goods and services in the victim's name including loans, credit cards and false bank accounts.
"To stop identity thieves, consumers need to check their credit reports on a monthly basis for suspicious transactions and be more responsible in looking after their personal information."
To protect consumers against the financial and emotional cost of identity theft, CPP provides Identity Protection that provides insurance to cover any costs associated with clearing a victim's name. SMS and e-mail alerts proactively inform policyholders if their credit status changes and the product checks whether their personal information is held on insecure websites. Should the worst happen, resolution experts are on hand to help victims restore their identities for them.
For more information, please visit http://www.cpp.co.uk or http://blog.cpp.co.uk/
Notes to editor
(1) 44% of people claim they have had a bad credit rating at least once. 44% of the adult British population (49,051,000 according to ONS) = 21,582,440. 4% say their credit rating was affected by their identities or passwords being stolen; therefore 4% of 21,582,440 = 863,298 people.
Research Methodology
Research was carried out online by Research Now among 2,005 people on 30 September 2010.
Corporate Background Information
The CPPGroup Plc
The CPPGroup Plc (CPP) is an international marketing services business offering bespoke customer management solutions to multi-sector business partners designed to enhance their customer revenue, engagement and loyalty, whilst at the same time reducing cost to deliver improved profitability.
This is underpinned by the delivery of a portfolio of complementary Life Assistance products, designed to help our mutual customers cope with the anxieties associated with the challenges and opportunities of everyday life.
Whether our customers have lost their wallets, been a victim of identity fraud or looking for lifestyle perks, CPP can help remove the hassle from their lives leaving them free to enjoy life. Globally, our Life Assistance products and services are designed to simplify the complexities of everyday living whether these affect personal finances, home, travel, personal data or future plans. When it really matters, Life Assistance enables people to live life and worry less.
Established in 1980, CPP has 10 million customers and more than 200 business partners across Europe, North America and Asia and employs 1,900 employees who handle millions of sales and service conversations each year.
In 2009, Group revenue was GBP292.1 million, an increase of more than 12 per cent over the previous year.
In March 2010, CPP debuted on the London Stock Exchange (LSE).
What We Do:
CPP provides a range of assistance products and services that allow our business partners to forge closer relationships with their customers.
We have a solution for many eventualities, including:
- Insuring our customers' mobile phones against loss, theft and damage - Protecting the payment cards in our customers' wallets and purses, should these be lost or stolen - Providing assistance and protection if a customer's keys are lost or stolen - Providing advice, insurance and assistance to protect customers against the insidious crime of identity fraud - Assisting customers with their travel needs be it an emergency (for example lost passport), or basic translation service - Monitoring the credit status of our customers - Provision of packaged services to business partners' customers CPP is an award winning organisation: - Winner in the European Contact Centre Awards, Large Team of the Year category, 2010 - Finalist in the European Contact Centre Awards, Best Centre for Customer Service, Large Contact Centre of the Year categories, 2010 - Winner in the National Sales Awards, Contact Centre Sales Team of the Year category, 2010 - Finalist in the National Insurance Fraud Awards, Counter Fraud Initiative of the Year category, 2009 - Finalist in the European Contact Centre Awards, Large Team and Advisor of the Year categories, 2009 - Named in the Sunday Times 2008 PricewaterhouseCoopers Profit Track 100 - Finalists in the National Business Awards, 3i Growth Strategy category, 2008 - Finalist in the National Business Awards, Business of the Year category, 2007, 2009 and Highly Commended in 2008 - Named in the Sunday Times 2006, 2007, 2008 and 2009 HSBC Top Track 250 companies - Regional winner of the National Training Awards, 2007 - Winner of the BITC Health, Work and Well-Being Award, 2007 - Highly Commended in the UK National Customer Service Awards, 2006 - Winner of the Tamworth Community Involvement Award, 2006. Finalist in 2008 - Highly Commended in The Press Best Link Between Business and Education, 2005 and 2006. Winner in 2007 - Finalist in the National Business Awards, Innovation category, 2005
For more information on CPP click on http://www.cppgroupplc.com
SOURCE: CPP
CONTACT: For more information or to arrange a time for interview withCPP's identity fraud expert, Nicole Sanders, please call Band & BrownCommunications: Eoghan Hughes - +44(0)20-7419-6976 / +44(0)7852-881-983l;Sarah Davidson - +44(0)20-7419-7346 / +44(0)7731-462451
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