Most of these crimes were abusive or threatening emails, false or offensive accusations, and blackmail posted over the internet.

Online harassment cases also reached almost two million, the report claims, but 90 per cent of victims did not make a formal complaint.

There were more than 200,000 cases of financial fraud last year, and the criminals were often impersonating their victims to obtain credit, money or a better job.

Cyber crime is increasing due to perpetrators being able to easily access personal information of their victims and to protect themselves by hiding behind the anonymity of the net.

Networking sites, such as the latest online phenomenon Facebook, are leaving millions of members open to identity theft. The site allows people to post detailed, personal information about themselves, including their date of birth, their address, the schools they went to, and even their pets' names.

People in the UK are joining Facebook at a rate of 10,000 per day and all the personal details they provide on the site are giving fraudsters exactly the sort of information that banks ask for as security questions.

No wonder online banking fraud rose by 44 per cent last year to £33.5 million, according to the payment association APACS.

So what can you do to protect yourself from identity fraud?

Barry Stamp, co-founder of the Credit Reporting Agency and author of the Identity Theft Kit, gives ten tips on how you can prevent online fraud:

1. When you are online, don't use the same password everywhere.
   
   Don't be one of the six per cent of people who use 'password' as a password and then leave themselves wide open to identity theft.
   
   
2. Don't reveal your place of birth unless it's really necessary.
   
   Banks and building societies often use your place of birth or your mother's maiden name to confirm your identity, so identity thieves would love to get hold of this, and any other relevant, personal information.
   
   
3. Don't ever reveal your PIN number to anyone.
   
   Try to memorise it rather than write it down.
   
   
4. Check your bank statements and credit card statements carefully.
   
   Always ensure that there has been no suspicious activity on your cards. Think about using a separate credit card to use in petrol stations and restaurants, where the risk of credit card cloning is high. It's easier to thoroughly check a separate statement which contains only high risk transactions.
   
   
5. Ignore all phone calls and emails purporting to come from your bank.
   
   Your bank will always write to you regarding any important matters.
   
   
6. Make sure that you know when to expect your bills and bank statements to arrive.
   
   Don't let thieves redirect or steal them for their fraudulent use.
   
   
7. When buying online, always ensure that the payment pages are secure.
   
   If the site isn't a reputable brand name, make sure that the company uses an approved payment provider, such as PayPal or WorldPay.
   
   
8. Keep a copy of all your transactions.
   
   Internet banking is a great way of monitoring your spending.
   
   
9. Try to keep your credit level low.
   
   If your identity does get stolen, thieves won't be able to run up thousands of pounds of debts.
   
   
10. Check your credit reports regularly to see whether your credit standing has been abused.
    
    You can obtain a report from credit reference agencies Experian and Equifax for just £2. www.annualcreditreport.co.uk also provides a completely free credit file monitoring service.
    
    
    

Further information
Get more guidance on protecting yourself from identity theft with Lawpack's Identity Theft Kit
ID theft subscriptions: Are they worth the money?