More than half of Brits, according to a December 2008 poll, are more concerned about identity fraud than they were 12 months ago. Unfortunately, their concerns are justified.

What's the problem?

ID fraud is growing in the UK - 2008 saw a 16% jump in reported cases. Over 200,000 individuals were victims of identity theft last year with the crook getting away with an average haul of £14,000 from each stolen identity. It's clear that the stakes are high.

Now you might think, "it doesn't matter, the bank won't charge me for the fraudulent charges," and you are probably right, but be prepared for an enormous amount of work to sort it out and correct your credit history.

On average, it takes most victims 60 hours to sort out the consequences of an identity theft. That's 60 hours of your life you will never get back spent on the phone to banks and credit bureaus.

Is it all bad news?

No - Brits are getting some things right. 68% of us have signed up for MasterCard SecureCode or the Verified by Visa programme - which offer an extra security step in online transactions involving credit cards. 86% of us now look for the padlock icon which designates a secure website before we proceed with a purchase.

Over half of British shoppers also choose to use a credit card for their online buying instead of a debit card because of its additional safety features.

As good as these steps are we need to do more to protect our identities.

What can you do?

One of the ways you can protect yourself is to make sure that you use up-to-date anti-virus software on your computer. Over 50% of UK computer users are vulnerable because they don't keep their anti-virus software current.

A recent study reveals that computer identity theft bugs are spreading at an alarming rate. In the second half of 2008, there was an 800% increase in the number of PCs in the UK infected with identity theft bugs.

What else can I do?

Everyone should request a copy of their credit report to see if there have been any fraudulent credit applications made in their name. Also, be vigilant about checking your monthly credit and debit card statements looking for any charges you don't recognise. If you find something out of line, ring your bank immediately.

It can happen to anyone

Andrew Spencer was making dinner one night when he received a call from someone saying they had received delivery of a case of wine purchased with Mr Spencer's credit card. The only problem was that Mr Spencer had never made the purchase! Someone was fraudulently using his credit card details.

Several phone calls, and several hours later, the issue was resolved. However it took even longer before the charge was finally reversed on his credit card.

"I have no idea how someone got a hold of my number, Mr Spencer says: "I also can't believe how much work it was to sort it out. I will certainly monitor my credit card statements a lot more closely in the future."

As they say, an ounce of prevention is worth a pound of cure. Be warned.

Written by Knight Hooson