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The number of Brits whose credit rating has been badly damaged by identity theft is likely to almost double within the next five years.

According to a new report by LV=, this means 240 people a day are being affected by the problem of ID fraud. The home insurer says that nearly half of all Brits have experienced some sort of credit problem, and of those experiencing problems, 27% blamed mistaken identity or being linked incorrectly to another person, and 29% said they had no idea why they had encountered a problem.

LV= is warning people that if they believe they have been refused credit unreasonably, they should investigate it further; it could be a sign that they have become a victim of identity theft.

Its research shows that as many as half a million adults have been ‘blacklisted' as a result of being hit by identity fraudsters, with the figure predicted to rise by a further 440,000 over the next five years. The full repercussions of being targeted by identity fraudsters include being refused a credit card, having to pay legal fees to sort the problem out and even being denied a mortgage.

John O'Roarke, managing director of LV= home insurance, says: "In the last ten years we've seen a massive increase in the number of people targeted by fraudsters, illustrating the importance of vigilance in protecting personal information and monitoring for any problems that might prove to be a ‘symptom' of identity theft. Our research shows that an unfair credit rating is a common problem for many and more worryingly, identity fraud is likely to rise sharply in the coming years."

To make sure your credit rating is not blackened by fraudsters, keep a regular eye on it. If you cannot prove your income, your credit rating is crucial, so it's best to keep it clean. Keep checking it online and if you do find any problems, try and amend them as soon as you can.

SOURCE: LV=, 29/04/09

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