ERIC Woolley, chief executive of York-based CPP, has sprung to the defence of its identity protection products, urging people not to underestimate the damage that can be caused by ID theft.

According to the National Fraud Authority, no fewer than 1.8 million people in the UK are victims of ID fraud each year, at a cost of £2.7 billion.

The card protection firm has suspended new sales of its ID products after the Financial Services Authority (FSA) announced it was launching an inquiry into how the products are sold.

However, Mr Woolley insisted the issue surrounded only a small part of the sales conversation and ID products would again be sold in the future.

He said: “It’s vital that people don’t lose sight of how important ID protection is in this day and age.

“There’s a widespread belief that the banks, catalogue and mobile phone companies, for example, will look after you if your personal details are fraudulently used to set up bank accounts, new credit cards and so on, but it’s simply not that simple.

“Once the fraudster has convinced those businesses that they are you, the onus is upon you to show that they are mistaken.

“This isn’t easy, and so the ID products we have been selling give you access to a case worker and specialist legal support and set out to prove it was not you.”

Mr Woolley feared the recent run-in with the FSA and adverse publicity in some of the national papers would prompt people not to protect themselves from this “modern-day scourge”.

“We’ve decided to cease selling ID protection until we have sorted out our differences with the FSA, but we will almost certainly come back with a product which offers our customers virtually the same level of protection and support.

“There may be some changes to the out-of-pocket insurance element of the product, but that’s all.”

ID protection is one of numerous products sold by CPP, which employs more than 2,300 people in 15 countries around the world, 1,000 of them at Holgate Park, York.

Mr Woolley has been frustrated by “exaggerated reports” that customers were mis-sold ID theft insurance.

He said: “Our culture over more than 30 years of business has been to help customers with life’s challenges and to suggest we have duped them is quite frankly absurd.”