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Data Base Breaches and ID Fraud Rose in 2017

Posted By Administration, Tuesday, February 13, 2018

The increase is huge. So are the financial losses.

Javelin Strategy & Research is an arm of Identity Guard. It did a study and found identification fraud victims rose last year by 8%. The figure hit 16.7 million and the amount stolen was $16.8 billion.

When it comes to data theft, the number of takeovers in 2017 tripled. Total losses was a staggering $5.1 billion. That’s up 120% from 2016.

There’s more:

  30% of U.S. consumers were told they are victims of a data breach

  That’s up 12% from 2016

  For the 1st time Social Security number theft topped credit card theft

  35% Social Security participants are victims

  30% of credit card holders are victims

 

The report notes fraud is done in two ways. There is theft at a physical store from fraudulent cards and online theft. Physical store theft is decreasing. This is due to the embedded chips in cards and terminals.

So, card-not-present fraud is the new favorite and is 81% more likely to happen than at point-of-sale fraud. This is the biggest gap Javelin has ever seen.

Credit card accounts are the biggest target. There’s new account fraud and a growth in new intermediary accounts like email payments, PayPal, Amazon and others.

All that leads to a big negative for consumers who have lost their trust in institutions and are shifting responsibility from themselves to the institution and companies that store their data.

Here are some other findings in the study:

  6.64% of consumers were hit by identity fraud in 2017

  That’s up almost 1 million from 2016

  1.5 million victims had an intermediary account opened in their name

  That’s a 200% increase over past years

  The average cost to victims of fraud is $290 out of pocket

  Most spent at least 16 hours to resolve the issue

  That led to 62.2 million hours of time lost last year by consumers

  69% of consumers are worried about fraud

  That’s up from 51% in 2016

  63% are — at the very least — concerned about data breaches

  64% say data breaches notifications don’t do a lot to protect them

 

In summary, Al Pascual of Javelin said, “2017 was a runaway year for fraudsters, and with the amount of valid information they have on consumers, their attacks are just getting more complex.”

Javelin surveyed 5,000 U.S. consumers for this study.

 

Source link: MediaPost.com

Tags:  Data Base Breaches and ID Fraud Rose in 2017  Insurance Content  Insurance Industry  Insurance News  Weekly Industry News 

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