Millions of people are putting themselves at risk of identity fraud from un-cancelled credit cards, according to new report.

Online credit report provider MyCallCredit says consumers who cut up or keep an unwanted credit card are at risk from identify theft because the account remains live until the lender is contacted.

A fraudster can access an inactive credit account by obtaining personal information, changing the address on that account and continue to use it without the victim’s knowledge.

APACS figures show more than 70 million credit cards are in use in the UK by around 30 million adult cardholders and if just one in ten of those cardholders has an unused card, three million people are increasing their chance of becoming a victim of ID fraud.

Alison Nicholson, MyCallcredit Director explains: "Unless you tell the card company you want to cancel it, the card remains live. If a fraudster gets hold of the details they can rack up bills without your knowledge."

MyCallcredit say it can take some victims up to 200 man-hours and £8,000 to prove they have been a victim of ID fraud and to clear their name.