The news comes as a further blow for East London, which only last month was named as the most indebted area in the UK.
Based on data including known fraud cases, house prices, the electoral roll, unemployment data and geo-demographic data, Callcredit has assessed the fraud status of the 121 localities that make up the UK.
A shocking nine areas of London make it into the top 10 most fraudulent areas, with Liverpool taking up the final spot.
Residents of Hereford have been identified as least at risk of falling victim of fraud, followed closely by areas such as Dorchester, Worcester, Exeter and Belfast.
Owen Roberts, head of callcreditcheck.com, says: “According to some of our recent research, 54% of Brits are more concerned about ID fraud now than they were 12 months ago.
“Fraud is an all too familiar concept these days and no one can be 100% safe from this organised crime, however people can certainly do things to help put themselves at a lower risk of falling victim.”
He adds: “A sound financial standing is especially important during a recession and falling victim to identity fraud can damage your credit rating for a long time.
“It can be a time-consuming experience but by taking precautions now may save you from months of trying to reclaim control of your own name.”