Identity fraud costs the UK over 2.7 billion every year, with over 1.8 million people hit on average over that time, according to research.
Almost 2 billion of that amount makes its way into the perpetrators hands and, on average, the criminals get over 1,000 from each stolen identity, figures from the National Fraud Authority (NFA) have shown.
This week saw the start of the sixth National Identity Fraud Prevention Week, which will look to educate individuals and businesses on the importance of protecting themselves and customers.
As part of the week, the NFA has reminded firms and individuals how important it is to protect identities, highlighting it can take 200 hours to repair the damage once the criminals strike.
"Stolen and false identities are a significant enabler of crime and this issue demands a co-ordinated response across Government and the private sector," said Dr Bernard Herdan, chief executive of the NFA.
"The work we've undertaken has allowed us to gain a better understanding of the issue of identity crime. We are now working actively with our partners to improve the UK's response to identity related crime and help reduce its devastating impact."
The NFA offered a range of basic tips to help prevent becoming a victim of identity fraud, including ensuring computers have up-to-date anti-virus and using privacy settings on social networking sites.
Figures from CIFAS the UK's Fraud Prevention Service have shown identify fraud rose almost 10 per cent in the first nine months of 2010 over the same period in 2009.
