Security Magazine logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Security Magazine logo
  • NEWS
    • Security Newswire
    • Technologies & Solutions
  • MANAGEMENT
    • Leadership Management
    • Enterprise Services
    • Security Education & Training
    • Logical Security
    • Security & Business Resilience
    • Profiles in Excellence
  • PHYSICAL
    • Access Management
    • Fire & Life Safety
    • Identity Management
    • Physical Security
    • Video Surveillance
    • Case Studies (Physical)
  • CYBER
    • Cybersecurity News
    • More
  • BLOG
  • COLUMNS
    • Cyber Tactics
    • Leadership & Management
    • Security Talk
    • Career Intelligence
    • Leader to Leader
    • Cybersecurity Education & Training
  • EXCLUSIVES
    • Annual Guarding Report
    • Most Influential People in Security
    • The Security Benchmark Report
    • Top Guard and Security Officer Companies
    • Top Cybersecurity Leaders
    • Women in Security
  • SECTORS
    • Arenas / Stadiums / Leagues / Entertainment
    • Banking/Finance/Insurance
    • Construction, Real Estate, Property Management
    • Education: K-12
    • Education: University
    • Government: Federal, State and Local
    • Hospitality & Casinos
    • Hospitals & Medical Centers
    • Infrastructure:Electric,Gas & Water
    • Ports: Sea, Land, & Air
    • Retail/Restaurants/Convenience
    • Transportation/Logistics/Supply Chain/Distribution/ Warehousing
  • EVENTS
    • Industry Events
    • Webinars
    • Solutions by Sector
    • Security 500 Conference
  • MEDIA
    • Videos
      • Cybersecurity & Geopolitical Discussion
      • Ask Me Anything (AMA) Series
    • Podcasts
    • Polls
    • Photo Galleries
  • MORE
    • Call for Entries
    • Classifieds & Job Listings
    • Continuing Education
    • Newsletter
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • This Month's Content
    • Advertise
  • SIGN UP!
Security NewswireSecurity Leadership and ManagementSecurity Education & TrainingCybersecurity NewsBanking/Finance/InsuranceRetail/Restaurants/Convenience

Identity Fraud Hits Record High

retail3-900px.jpg
February 1, 2017

The number of identity fraud victims increased by 16 percent (rising to 15.4 million U.S. consumers) in the last year.

According to the 2017 Identity Fraud Study by Javelin Strategy & Research, despite the efforts of the industry, fraudsters successfully adapted to net two million more victims this year with the amount fraudsters took rising by nearly one billion dollars to $16 billion.

There was a resurgence in existing card fraud in 2016, which saw an increase of 40 percent in card-not-present (CNP) fraud.The study also found that the increase in EMV cards and terminals was a catalyst for driving fraudsters to shift to fraudulently opening new accounts. On a positive note, while fraudsters are becoming better at evading detection, consumers with an online presence are getting better at detecting fraud quicker, leading to less stolen overall per attempt.

The study found four significant trends:

  • Fraud leaps to a record high incidence - In 2016, 6.15 percent of consumers became victims of identity fraud, an increase by almost 2 million victims from the previous year. The incidence rate jumped by 16 percent from 2015, the highest incidence since Javelin began tracking identity fraud. This increase was driven by growth in existing card fraud, which saw a significant spike in card-not-present transactions.
     
  • Card-not-present (CNP) fraud rises significantly - Driven by closing opportunities for point-of-sale fraud and the growth of e- and m-commerce, fraudsters are increasingly moving online, dramatically increasing the prevalence of CNP fraud by 40 percent. Meanwhile incidence of fraud at the point-of-sale (POS) remained essentially unchanged from 2014 and 2015 levels.
     
  • Account takeover bounces back - After reaching a low point in 2014, both account takeover incidence and losses rose notably in 2016. Total ATO losses reached $2.3 billion, a 61 percent increase from 2015, while incidence rose 31 percent. Account takeover continues to be one of the most challenging fraud types for consumers with victims paying an average of $263 out of pocket costs and spending a total of 20.7 million hours to resolve it in 2016 – 6 million more than in 2015.
     
  • New-account fraud continues unabated - As EMV cards and terminals continue to permeate the US POS environment, fraudsters shift to fraudulently opening accounts that allow them. At the same time, fraudsters have become better at evading detection, with new-account fraud (NAF) victims being notably more likely to discover fraud through review of their credit report (15 percent) or when they were contacted by a debt collector (13 percent).

New this year, the 2017 Identity Fraud Study identifies and analyzes four consumer personas, Offline Consumers, Social Networkers, e-Commerce Shoppers and Digitally Connected, based on attributes and fraud risks. Findings include:

  • Offline Consumers have little online presence, either social networking or shopping, are exposed to less fraud risk than digitally connected consumers, but their minimal digital life brings other risks. With a distrust of both online and mobile banking, these consumers take more than 40 days to detect fraud and incur higher fraud amounts than other fraud victims.
     
  • Social Networkers share their social life in digital platforms (like Facebook, Instagram, Snapchat and other networks, but do very little e- or m-commerce, face the risks associated with having their personal information widely available to fraudsters who can use it to overcome security measures or socially engineer victims. This manifests in a 46 percent higher risk of account takeover fraud.
     
  • E-commerce Shoppers (including m-commerce) expose their financial information to potential compromise and experience an elevated risk of existing card fraud. Sixty-two percent of these ecommerce shoppers made an online purchase within the past week. While this customer segment experienced the highest prevalence of fraud of any of the four segments, they also tended to catch it very quickly, minimizing the impact. Seventy-eight percent of fraud victims in this segment detected fraud within one week of it beginning.
     
  • Digitally Connected Consumers have extensive social network activity, frequently shop online or with mobile devices, and are quick to adopt new digital technologies.  Twenty-five percent of these consumers used a P2P payment service in the past week. Digitally connected consumers have a presence on an average of 4.9 social networks, are predominantly female... This also exposes them to greater risks, a 30 percent higher risk of fraud.

https://www.javelinstrategy.com/press-release/identity-fraud-hits-record-high-154-million-us-victims-2016-16-percent-according-new

KEYWORDS: credit fraud fraud trends identity fraud identity theft

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • Security's Top Cybersecurity Leaders 2024

    Security's Top Cybersecurity Leaders 2024

    Security magazine's Top Cybersecurity Leaders 2024 award...
    Security Leadership and Management
    By: Security Staff
  • cyber brain

    The intersection of cybersecurity and artificial intelligence

    Artificial intelligence (AI) is a valuable cybersecurity...
    Security Leadership and Management
    By: Pam Nigro
  • artificial intelligence AI graphic

    Assessing the pros and cons of AI for cybersecurity

    Artificial intelligence (AI) has significant implications...
    Logical Security
    By: Charles Denyer
Manage My Account
  • Security eNewsletter & Other eNews Alerts
  • eMagazine Subscriptions
  • Manage My Preferences
  • Online Registration
  • Mobile App
  • Subscription Customer Service

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Security audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Security or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Sureview screen
    Sponsored bySureView Systems

    The Evolution of Automation in the Command Center

  • Crisis Response Team
    Sponsored byEverbridge

    Automate or Fall Behind – Crisis Response at the Speed of Risk

  • Perimeter security
    Sponsored byAMAROK

    Why Property Security is the New Competitive Advantage

Popular Stories

Rendered computer with keyboard

16B Login Credentials Exposed in World’s Largest Data Breach

Verizon on phone screen

61M Records Listed for Sale Online, Allegedly Belong to Verizon

Security’s 2025 Women in Security

Security’s 2025 Women in Security

Red spiderweb

From Retail to Insurance, Scattered Spider Changes Targets

blurry multicolored text on black screen

PowerSchool Education Technology Company Announces Data Breach

2025 Security Benchmark banner

Events

July 17, 2025

Tech in the Jungle: Leveraging Surveillance, Access Control, and Technology in Unique Environments

What do zebras, school groups and high-tech surveillance have in common? They're all part of a day’s work for the security team at the Toledo Zoo.

August 7, 2025

Threats to the Energy Sector: Implications for Corporate and National Security

The energy sector has found itself in the crosshairs of virtually every bad actor on the global stage.

View All Submit An Event

Products

Security Culture: A How-to Guide for Improving Security Culture and Dealing with People Risk in Your Organisation

Security Culture: A How-to Guide for Improving Security Culture and Dealing with People Risk in Your Organisation

See More Products

Related Articles

  • identity theft, fraud prevention, cybersecurity, data theft

    Identity Fraud Hits All Time High With 16.7 Million U.S. Victims in 2017

    See More
  • New Record High for Identity Fraud

    New Record High for Identity Fraud

    See More
  • Security Newswire

    Breach Report Hits Record High in 2014

    See More

Related Products

See More Products
  • highriseproductphoto

    High-Rise Security and Fire Life Safety, 3rd edition

  • 9780367259044.jpg

    Understanding Homeland Security: Foundations of Security Policy

  • Risk-Analysis.gif

    Risk Analysis and the Security Survey, 4th Edition

See More Products
×

Sign-up to receive top management & result-driven techniques in the industry.

Join over 20,000+ industry leaders who receive our premium content.

SIGN UP TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing