According to a report released by Javelin Strategy and Research and another by the FTC, the incidence of identity fraud increased in 2012 for the second consecutive year, affecting 5.26 percent of U.S. adults. This increase was driven by dramatic jumps in the two most severe fraud types, new account fraud (NAF) and account takeover fraud (ATF).
Key findings from the FTC’s report:
- Over one million complaints were fraud-related. Consumers reported paying over $1.4 billion in those fraud complaints; the median amount paid was $535.
- Fifty-seven percent of all fraud-related complaints reported the method of initial contact. Of those complaints, 38 percent said e-mail, while another 34 percent said the telephone. Only 9 percent of those consumers reported mail as the initial point of contact.
Key findings from Javelin’s report:
- Identity fraud incidents and amounts stolen have increased. The number of identity fraud incidents increased by one million more consumers over the past year, and the dollar amount stolen increased to $21 billion—a three-year high, but still significantly lower than the all-time high of $47 billion in 2004. This equates to one incident of identity fraud every three seconds.
- One in four recipients of a data breach notification became a victim of identity fraud. This year, almost 25 percent of consumers that received a data breach letter became a victim of identity fraud, which is the highest rate since 2010. The study found consumers who had their Social Security number compromised in a data breach were five times more likely to be a fraud victim than an average consumer.
- Small retailers are losing out. Fraud victims are more selective where they shop after an incident, and small businesses were the most dramatically impacted. The study found that 15 percent of all fraud victims decided to change behaviors and avoid smaller online merchants. This is a much greater percentage than those that avoid gaming sites or larger retailers.
With iovation’s services, when computers or mobile devices with fraudulent histories connect to a retailer’s website, the business is alerted in real time. If velocity or geolocation alerts are triggered, the retailer knows that too, also in real time. The company maintains a living database of device intelligence, sharings the data across its global base of finance, gaming, travel, shipping, dating, and retail clients. Information is shared in order to detect fraudulent activity as soon as possible—before a product is shipped and chargebacks and fees are incurred. iovation calls it device reputation; I call it another bit of common sense for retailers.
Robert is a personal security and identity theft expert contributor to iovation. He is the author of 99 Things You Wish You Knew Before Your Mobile was Hacked! Disclosures.
ROBERT SICILIANO, CEO of IDTheftSecurity.com is fiercely committed to informing, educating, and empowering Americans so they can be protected from violence and crime in the physical and virtual worlds. His "tell it like it is" style is sought after by major media outlets, executives in the C-Suite of leading corporations, meeting planners, and community leaders to get the straight talk they need to stay safe in a world in which physical and virtual crime is commonplace. Siciliano is accessible, real, professional, and ready to weigh in and comment at a moment's notice on breaking news.
- What Are the Latest Identity Theft Statistics?
The 2012 Identity Fraud Report: Social Media and Mobile Forming the New Fraud Frontier, released by Javelin Strategy & Research, reports that in 2011 identity fraud increased by 13 percent. More than 11.6 million adults became a victim of identity fraud in the United States, while the dollar amount stolen held steady. Approximately 1.4 million more
- How safe is my identity? What are the latest threats? How do I protect myself?
The 2012 Identity Fraud Report: Social Media and Mobile Forming the New Fraud Frontier, released by Javelin Strategy & Research reports that in 2011 identity fraud increased by 13 percent. More than 11.6 million adults became a victim of identity fraud in the United States, while the dollar amount stolen held steady. Identity theft occurs when someone
- Credit Card Theft increasing for Banks and Retailers
2013 was the year of 740 million records involving data breaches. And that number may be erring quite on the conservative side, according to the Online Trust Alliance. The records come from a list on the Privacy Rights Clearinghouse Chronology Data Base. The list is that of publically disclosed breaches, including the alleged 110 million that struck
- Identity Fraud Victim every two Seconds
Yes, identity fraud is SO common that someone becomes a victim every two seconds. The 2014 Identity Fraud Study, as reported on javelinstrategy.com, turned up some alarming results. Though the dollar amount stolen had decreased over the year preceding the study, the number of victims had increased. People at highest risk were ages 35 to 44. Account
- 1 Billion Records hacked
Billions and billions—it’s only a matter of time before this becomes the number of hacking incidents in a single year, because just in 2014, over one billion records were hacked out of 1,500 different hacking incidents, says a recent report. Some other findings from the report: A little over half the breaches involved credit card numbers, Social
One Response to “Identity Theft on the Rise…Again”
[…] According to a report released by Javelin Strategy and Research and another by the FTC, the incidence of identity fraud increased in 2012 for the second consecutive year, affecting 5.26 percent of U.S. adults. This increase was driven by dramatic jumps in the two most severe fraud types, new account fraud (NAF) and account takeover fraud (ATF). http://robertsiciliano.com/blog/2013/03/21/identity-theft-on-the-riseagain/ […]
Leave a Comment
You must be logged in to post a comment.