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$16 Billion Stolen from 12.7 Million Identity Fraud Victims in 2014, According to Javelin Strategy & ResearchThe 2015 Identity Fraud Study, released today by Javelin Strategy & Research (@JavelinStrategy), revealed that 2014 was a mixed year in the fight against identity fraud, with some advances and some setbacks. The study found that fraudsters stole $16 billion from 12.7 million U.S. consumers last year. With a new identity fraud victim every two seconds, there is still significant risk to consumers, particularly students. Encouragingly, new account fraud - when someone opens an account in your name that you are not aware of - hit a record low in 2014, but continues to be one on the most damaging types of fraud. Data breaches were a big headline in 2014, and they had a significant impact on identity fraud. The study found that two-thirds of identity fraud victims in 2014 had previously received a data breach notification in the same year, with many indicating their wariness about shopping at merchants, including big box retailers. The annual 2015 Identity Fraud Study is a comprehensive analysis of identity fraud trends, independently produced by Javelin Strategy & Research and made possible by LifeLock, Inc., a leading provider of proactive identity theft protection services for consumers, and fraud and risk management solutions for enterprises. Now in its twelfth consecutive year, it is the nation's longest-running study of identity fraud, with 58,800 respondents surveyed since 2003. Identity fraud is defined as the unauthorized use of another person's personal information to achieve illicit financial gain. Identity fraud can range from simply using a stolen payment card account, to making a fraudulent purchase, to taking control of existing accounts or opening new accounts. The 2015 Identity Fraud Study found several significant trends, including:
Methodology In October 2014, Javelin Strategy & Research conducted an address-based survey of 5,000 U.S. consumers to assess the impact of fraud, uncover where fraudsters are making progress, explore consumers' actions and behaviors, and identify segments of consumers most affected by fraud. Six Safety Tips to Protect Consumers Javelin Strategy & Research recommends that consumers work in partnership with institutions to help minimize their risk and impact of identity fraud. Following is a six step approach for consumers to follow: 1. Secure your mobile device - As consumers transition more of their financial lives to smartphones and tablets, these devices have become high-profile targets for both cybercrooks and thieves alike. To help protect against criminals from getting their hands on valuable personal information, apply software updates (patching known vulnerabilities) as soon as they become available, and take advantage of the security capabilities built into Android (News - Alert) and iOS devices, such as protecting the device with a passcode or biometric (such as a fingerprint), and the ability to encrypt and remotely wipe the contents of the device in the event it is stolen. 2. Exercise good password habits - Passwords have remained the de facto first line of defense for most online accounts, which has motivated criminals to compromise them whenever possible. Using strong, unique, regularly updated passwords helps reduce the value to fraudsters of passwords stolen in a data breach or through malware. Password managers can provide a convenient way to manage good password hygiene without resorting to writing them down, which could also place them at risk of physical compromise. 3. Take advantage of EMV and mobile payments - Data breaches were a massive problem in 2014, with several high-profile businesses being affected. Cyberthieves stole the credit and debit card information of millions of account holders in their effort to fuel the needs of fraudsters. Recently introduced to the U.S., EMV chip cards and mobile payment solutions (such as Apple (News - Alert) Pay), can reduce the value of payment data to cyberthieves, as they introduce security factors which make misusing the data much more difficult when compared to traditional magnetic stripe cards. 4. Sign up for account alerts - A variety of financial service providers, including depository institutions, credit card issuers and brokerages, provide their customers with the option to receive notifications of suspicious activity. These notifications can often be received through email or text message, making some notifications immediate, and some go so far as to allow their customers to specify the scenarios under which they want to be notified so as to reduce false alarms. 5. After a data breach, make sure that any "free monitoring services" fit the crime - Not all data breaches are created equal as different types of data can be used to commit different types of fraud. Be certain that if you are offered some type of identity protection or credit monitoring product after a breach, that it is designed to help protect against the types of frauds that the breach has exposed you to. If not, contact the provider and inquire as to whether or not an alternative service is available. 6. Seek help as soon as fraud is detected - The more immediate a financial institution, credit card issuer, wireless carrier or other service provider is notified that fraud has occurred on an account, the sooner these organizations can act to limit the damage. Early notification can also help limit the liability of a victim in some cases, as well as allow more time for law enforcement to catch the fraudsters in the act.
Additional Consumer Resources To learn more about how consumers can protect themselves, visit LifeLock's (News - Alert) blog: http://www.lifelockunlocked.com/fraud/a-new-identity-theft-victim-every-two-seconds To take an identity fraud safety quiz, and get additional safety tips, visit www.idsafety.net To report incidents of suspected fraud or identity theft, visit the FTC (News - Alert) online at http://www.ftc.gov/faq/consumer-protection/report-identity-theft To learn how to create more secure passwords, watch this video: https://www.youtube.com/watch?v=4Y_w9ppIz5M
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