AS MONEYMAKING scams go, pretending to be someone else is one of the oldest tricks in the book. But the internet is making identity theft so easy that it has become the most common type of fraud.

The scale of the problem became clear in January when the US Federal Trade Commission reported that ID theft had more than doubled in just two years (see Chart). It now represents 42 per cent of fraud in the US, and is likely soon to overtake all other types of fraud put together.

ID theft involves a fraudster pretending to be someone else by getting hold of key personal information about their victim. A relatively small amount of information is needed, typically the name, date of birth, address, a serial number from an official form of ID such as a driving licence or passport, and perhaps the mother's maiden name. Armed with ...