What is being done?Identity theft and fraud affects individuals, government departments and private sector organisations, and often forms part of more serious criminal operations such as people trafficking and drug smuggling. The 2002 Cabinet Office Study, which covered the use of false identities and the theft of other people's identities, estimated that crime facilitated by identity fraud costs the UK £1.3 billion per annum. In February 2006, the Home Office Identity Fraud Steering Committee completed a one-off exercise to update the Cabinet Office estimate for the purpose of establishing trends in the intervening years. This exercise estimated that identity fraud costs the UK economy £1.7 billion a year. As with the previous study, it represented a best estimate of the scale of the problem. A breakdown of the estimate can be found here.
The Identity Fraud Steering Committee developed a new methodology for estimating the cost of identity fraud, and together with key industry stakeholders, published a new estimate of £1.2 billion on 9 October 2008. Full details of the latest estimate can be found here.
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