SAN FRANCISCO — A recent Javelin Strategy & Research Identity Fraud Survey Report finds that there has been a dip in identity fraud.
According to the report identity fraud has dropped an estimated 12% representing a total fraud reduction of some $6.4 billion. The survey also found a decrease in fraudulent new account openings and average fraud amounts.
"I want to make it clear that while there seems to be some good news about this serious crime it doesn't mean that we can stop worrying about identity fraud," said Javelin Editor/Analyst and Study Author Mary T. Monahan. "We're still looking at $49 billion in losses that is a lot of money and some 8.4 million victims in the United States. And that is just of the consumers who are aware they have been victimized so it is important to remain vigilant."
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The survey found a noticeable reduction in the incidents of new account fraud in the past 12 months. New account fraud takes place when criminals use a victim's personal data to establish a new account using the victim's identity and confidential information. New account fraud dropped from 1.5% of all respondents in 2006 to 1% in 2007. Additionally, when fraudulent accounts are opened, many victims caught the fraud more quickly utilizing online channels, such as the viewing of statements, resulting in average fraud amounts dropping from more than $10,000 in 2006 to $7,260 on average in 2007.
In addition to the reduction in fraud amounts, consumers reported improved resolution times, decreasing from a typical 25 hours in 2006 to only five hours in 2007.
The survey also confirmed that more fraud occurs in traditional physical channels, such as in-person transactions and by the direct theft of personal data by individuals, rather than online. Young adults are at the greatest risk for identity fraud. Adult victims between the ages of 18 and 24 are least likely to take easy, but important safeguards such as shredding documents and using antivirus software and firewalls, resulting in more than five percent of those surveyed falling victim.
Among the factors that contributed to the decline include better consumer education and awareness, and the increased usage of online banking and financial sites that allow individuals to more frequently monitor their accounts.
"While the results are encouraging criminals are not sitting around they are always moving on to the next new way to steal identities so it is something where consumers, financial institutions and merchants have to constantly try to stay one step ahead," said Monahan. "This report looks at the victims and how this happens so the hope is that by using this information it will help everyone get better at being more proactive and eventually stopping these criminals." –[email protected]
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