Several clients have expressed concerns about HM Revenue & Custom’s recent data protection fiasco. They are worried about the implications for identity theft. What advice should I give them?

The short answer is ‘be vigilant’. Two major risks are unauthorised payments from personal bank accounts and identify theft. Starting with bank accounts, most internet banking systems include identification via a password or memorable word.

Using a child’s name is an obvious risk. Change your password as a matter of urgency. Also, closely monitor all bank transactions. Look for a payment that you don’t recognise or bank charge that you weren’t expecting. Small amounts have a greater chance of slipping through the net. Emptying an account is likely to be noticed by the banks at a time of heightened alert for unusual transactions.

Identity theft is another major risk. Credit reference agencies will notify you of any new loans taken out in your name, but in the absence of HMRC offering to pay the cost, it is down to the individual concerned. Otherwise look at all mail and follow up anything that you do not recognise. This also applies to children ­ particularly those nearing or recently past their 18th birthday. They may not know what to look for and if they are students living away in term time there is a risk that mail delivered to their permanent home will go unopened for several weeks. Finally, don’t think this problem will go away. It will soon be yesterday’s news, but that’s when the real risk starts.

Any professional criminal who gets the data is unlikely to use it while everyone is on alert.