Millions of Brits could have their identities stolen because they fail to take basic precautionary measures, a credit reference agency warns.

Around half of people have never checked their credit files whilst one in three use the same PIN or password more than once, according to research from Callcredit.

Although women are more likely to shred sensitive documents than men, around a quarter simply throw them away without a second thought. But criminals who get hold of these personal details will be able to use them to get false credit and leave others in the red.

Government figures consequently predict that over 100,000 people are affected each year at a cost of more than £1.3 billion.

Alison Nicholson, MyCallcredit director, warned: "People aren't taking the necessary steps to protect themselves.

"We hope to be able to change that by getting the message across to consumers through the guide identity theft - don't become a victim."

Signs that identity fraud has been committed include not receiving post expected from banks, or noticing unrecognized items on bills.

Identity fraud can be avoided by cancelling unwanted credit services and by using more than one password for credit facilities.