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ID theft victims should be offered support by their banks, building societies and utility companies, the National Consumer Council (NCC) has said.
It argued that the cost of the crime to individuals was often more substantial than the £1.7 billion damage it causes to the economy. As well as being hit in the pocket, victims can find themselves stuck without a bank account, hit for ghost debts taken out in their name and being refused for credit.
To combat the problem, the NCC said that firms should establish specialist ID fraud helpdesks to assist individuals to sort out problems after they arise, and said that the government should regulate a minimum standard of service from companies.
Claire Whyley of the NCC said: "ID theft has devastating, extremely stressful and often long-term consequences for its victims. They are left struggling on their own to unravel a complex web of knock-on effects across a plethora of companies and organisations. This can't be right," she added. "Innocent victims should not be made to feel like criminals. Instead, we want to see businesses… give ID fraud victims more help and support in untangling the mess and smoothing the stress."
The news comes after a report from BT revealed that eight per cent of British internet banking users believe they have become victims of online fraud.
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