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Rise in fraudulent credit applications

According to a report by Experian, the number of attempts made by identity fraudsters to take out loans and credit cards `rose sharply` in 2010, the Guardian reports.

Seven in every 10,000 loan applications were fraudulent - an increase from five in every 10,000 recorded back in 2009. Insurance fraud saw an 11% rise on the whole.

Young and single people living in rented and shared accommodation were found to be most likely to be targeted by identity fraudsters, along with wealthier people in `fashionable inner London suburbs`.

There was a 14% rise in mortgage fraud attempts last year, which typically involved applicants lying about their personal finances and employment prospects, or attempting to cover up past addresses or bad credit histories.

A spokesperson at the IVA Advisory Centre commented: "Fraud is a big problem, but there are measures consumers can take to help protect themselves. For example, remaining vigilant and reporting any suspicious activity to the relevant service provider - whether that`s their bank or their credit card provider - can help minimise the risk of becoming a victim of identity fraud."