- The number of identity fraud victims rose to 13.1 million, an increase of more than 500,000 over the previous year.
- A dramatic increase in account takeover was reported.
- Data breaches became even more damaging. Information has been stolen from eBay, PayPal, Amazon and other Internet accounts. One in three people who received a data breach notification during the year was added to the growing list of victims.
About the only good news in the 2013 report is that the amount of money taken in identity fraud incidents was down to $18 billion, a $3 billion decrease over the previous year-end well below the high of $48 billion that occurred before counter-measures were begun. That’s small consolation to the millions who have suffered losses.
Fraud can range from simple unauthorized use of another person’s information to make purchases to elaborate schemes of taking control of existing accounts or opening new accounts. Javelin Strategy and Research contacted 5,634 U.S. consumers to compile its data.
The decrease in the total money impact of fraud in 2013 was attributed to education and other steps that are fighting the problem, said Al Pascual, senior analysts of Security, Risk and Fraud for the researchers. In response, criminals appear to be adapting their approach to focus on account takeover, which becomes easier when there are major breaches in huge accounts. There is no room for letting down defenses, he said. “Any complacency will provide fraudsters renewed opportunities.”
Data breaches have become by far the greatest risk factor for identity fraud, allowing criminals more latitude for their ever-more-sophisticated schemes.
Javelin offers these safety tips for consumers, who are advised to work with established institutions to fight the problem:
- Keep your personal data private. Use and frequently change passwords and keep personal information locked in a storage device at home, at work and on your mobile device. Don’t mail checks to pay bills unless they are printed on high security paper. Shred documents that contain information. Monitor accounts and use updated security software. Use a trusted and secure Internet connection rather than a public Wi-Fi site when transmitting personal or financial information. Have regular income checks direct-deposited.
- Use two-factor authentication when possible. Some institutions offer this added layer of security, beyond username and password. You will then be notified each time someone tries to access your account. You can deal with suspicious incidences in real time.
- Resist any requests for your Social Security Number. The great majority of banks and credit card issuers will allow access to your account to someone using your SSN. The numbers can’t be changed so they’re valuable to fraudsters. Ask your financial institution to put a note on your account that you will never provide your SSN when identification is requested. Then if someone attempts to get access to your account with this information he or she will automatically be identified as a fraudster.
- Be proactive and enlist others in the effort to stem fraud. Sharing alerts issued by banks can reduce the risks for more people. An array of services are offered to consumers who want extra protection, including payment transaction alerts, credit monitoring, credit report fraud alerts, credit freezes and database scanning.
- Take any perceived data breach seriously. If your financial institution or retailer provides free monitoring after a breach, take advantage of the offer, closely monitor your accounts and ask that a fraud alert be attached to your credit report.
- Report problems immediately, even if your only suspect fraud. Contact your financial institution to see what resolution services they offer, including loss protections and methods to secure your accounts. Quick action can reduce the likelihood of losses and help law enforcement agencies to pursue fraudsters.
Do everything you can to avoid becoming an addition to the fraud statistics for the next reporting period.