Consumers 'should check credit ratings'

A financial advice expert has warned UK consumers to check their credit ratings carefully in order to prevent fraud.

David Kuo, head of personal finance at Fool.co.uk, has said that there is likely to be an increase in fraudulent activity due to the credit crunch and that people should keep a close eye on their financial affairs.

Mr Kuo said that the current economic climate could mean that fraudsters will use any means necessary to get credit, even if it means identity theft.

"We are in desperate times at the moment people will do anything to get hold of credit. If you are a consumer and you haven't recently checked your credit reference, go and have a look at it just to make sure there is not anyone out there making fraudulent applications on your behalf," he said.

According to the UK fraud prevention service CIFAS, there has been a 146 per cent increase in account takeover - where criminals impersonate a victim to gain control of a bank account - in the first quarter of 2008 when compared to the same period in 2007.

CIFAS figures also show that the average UK consumer is now more likely to lie on application forms for loans and credit cards in a bid to cover up poor credit history.