Just How Good Is Credit Report Security?

There certainly appear to be issues relating to credit report security. It is one thing to not give out personal information to anyone who asks - can you imagine the free-for-all if anybody could apply for and be given another persons credit files? However, it is another issue altogether to not properly vet those who do have access.

Having read a number of books which relate to the subject of identity theft, it seems that virtually all the successful fraudsters use the same approach: they find someone in a store who can process the occassional credit check for them. If the number of targets searched is low, slipping the very occassional one through will not be noticed for either a very long time - or possibly never.

It is widely believed that seemingly honest members of staff in banks, finance and insurance companies will provide financial and policy details if the money is 'right'. Frighteningly, the amounts they deem to be 'right' are generally very low - especially in relation to the potential proceeds of the crime.

Once this information has been obtained, it verifies the potential of the target and offers an invaluable insight into their actual finances - whom they hold loans and accounts with, mortgage details, payment details and much more.

In short, if we were to become the target of an identity thief and he or she was able to obtain these details about us, it would provide a massive advantage to the criminal and make their job significantly easier. Not good for the individual target...

As an example, your author assists a local wholesaler to bars, pubs and clubs with their marketing. The company sells products which would mainly be found in a commercial kitchen and these items can range in price from a few pounds to multi-thousands of pounds. Many businesses might need these larger items but be unable to pay for them in one payment and so instead take business loan financing. There are tax benefits attached which make this option more appealing.

To decide whether a firm should be provided these credit terms, the company has an account with a financing firm who will perform credit checks on both the business and individual directors within the hour. Whilst we all imagine that a credit firm carries out a background check on all new employees for financial difficulties and criminal convictions, should a wholesaler do the same? And if they should, how might this be enforced nationwide?

I can speak from experience and say that the company I help employs a small number of high quality staff. There would seem to be no reason to be suspicious of any of them or their actions. However, if they were less honest, what might that do to credit report security?

It would be hard to suggest that more legislation is required - we almost certainly have enough of that already. More relevant would be finding a way to monitor the searches made and organisations making searches more effectively. This is no easy task, but if identity thieves are to be stopped, it needs to happen.