New research claims it is not uncommon that victims of identify theft are often related to or a friend of the guilty culprit.

CIFAS, a UK fraud prevention service, claims that 65,043 people in the UK were victims of identity theft in 2007. In a significant number of cases the fraudster was a friend or family member to the victim.

Victims are often left with poor credit worthiness and the financial burden of rectifying the damaged caused by identity thieves.

However the psychological damage that can result from identity theft can take years to undo, especially when the fraudster is someone well known to the victim.

The report provides details of two case studies, whereby victims of identity theft knew their villains. In the first case study Alan James discovered his identity had been used to obtain credit cards, computers and a range of other goods. After investigation it was revealed that the culprit was his own brother.

“All in all it has cost me relatively little to resolve the damage done as all parties involved have accepted that I am not the person they have dealt with,” says James.

“This cost is insignificant compared with the damage my brother has done to the family and the people around him,” he adds.

“It really has had a profound effect upon me and the way I interact with people, including my family. I find myself always wondering whether I can actually trust people. It was just such a shock that the fraudster was so close to me,” concludes James.

In another case, a family friend of Pete Thomas stole his identity and while there was a warrant for his arrest he continued to abuse Thomas’ identity for a further five years.

The effects to Thomas’ health were significant:

“I was taken into a room and put on a heart monitor because they were concerned about my health and were worried that I was going to have a heart attack from the stress,” he says.

Peter Hurst, Chief Executive of CIFAS, says that the effect that fraud has to a victim when the felon is a friend or member of the family is incalculable.

“As in the case of Mr Thomas - it can take years to untangle the threads of deception. When you add to this the effect of the fraudster being someone close and trusted, the repercussions can be shattering,” adds Hurst.

“While most family members can trust one another without reservation, it is always sensible to remove temptation by keeping personal and financial documents, PIN numbers and passwords completely confidential,” advises Thomas.

For more advice on how to avoid financial deception, in particularly internet scams, read our quick check-list to protect yourself from online fraud. Tips to Avoid Internet Fraud.

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