ID fraud major hurdle for DM industry

LONDON - Identity fraud has increased by 66 per cent in the past year, becoming a significant barrier to DM industry efforts to improve recycling rates.

The claim, from Mark Roy, CEO of The Read Group, comes as the DMA struggles to hit its recycling target of 55 per cent by 2009. The greatest recycling hurdle is identity fraud, he says. If a consumer is faced with a choice between protecting the environment and protecting their identity they will choose the latter.

Impersonation of the dead is Britain's fastest growing identity theft crime, according to the UK's Fraud Prevention Service. Credit reference company Experian found that consumers living in affluent areas are more likely to be targeted by identity thieves. However, according to The Read Group, these are the areas most targeted by direct mail campaigns.

Ofcom has reported that 70 per cent of consumers express concern over the amount of personal data held by direct marketers and that this could reduce their willingness to recycle direct mail.

Roy said the threat of identity theft was affecting DM's reputation and called for the industry to build a long-term relationship with consumers.

"Listening to the consumer is imperative and I think more and more organisations are beginning to do that," he said.

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