Identity Fraud Hits All Time High With 16.7 Million U.S. Victims in 2017
The 2018 Identity Fraud Study by Javelin Strategy & Research, revealed that the number of identity fraud victims increased by eight percent (rising to 16.7 million U.S. consumers) in the last year, a record high since Javelin Strategy & Research began tracking identity fraud in 2003. The study found that despite industry efforts to prevent identity fraud, fraudsters successfully adapted to net 1.3 million more victims in 2017, with the amount stolen rising to $16.8 billion. With the adoption of EMV (embedded chip) cards and terminals, the types of identity fraud continued to shift online and away from physical stores. The complexity of fraud is also on the rise as criminals are opening more new accounts as a means of compromising accounts consumers already have.
The study also found three significant changes in data breaches in 2017. Nearly a third (30 percent) of US consumers were notified of a breach in the past year, up from 12 percent in 2016. For the first time ever, Social Security numbers (35 percent) were compromised more than credit card numbers (30 percent) in breaches. Finally, data breaches are causing consumers to lose trust in institutions. These trends combined to cause consumers to shift the perceived responsibility for preventing fraud from themselves to other entities, such as their financial institution or the companies storing their data.