Privacy, Security & Convenience on a Collision Course
Consumer protect yourself. That’s the big takeaway from a new report by Javelin Strategies that was supported by the Better Business Bureau found that the number of identity fraud victims in the United States has jumped by 12 percent to 11.1 million adults – the highest increase to-date since the survey started in 2003 – while the total overall fraud amount increased by 12.5 percent to $54 billion.
Here’s one of the key findings from the report that should make consumers and businesses shudder: The number of fraudulent new credit card accounts valid anywhere increased to 39 percent, up from 33 percent in 2008. New fraudulently-opened Internet accounts more than doubled over the previous year.
That means more cyber criminals are using stolen identities to manufacture new credit card accounts for a more lucrative spending spree. James Van Dyke, founder and president of Javelin, in an interview with Bank Systems & Technology explains that new accounts fraud “…are the most damaging types of fraud…they typically have higher dollar amounts and if somebody establishes an account in your name, you’re less likely to know about it.”
But take heart: according to one web site’s read on the report there’s some good financial news too: the mean fraud amount per victim dropped 0.3%, from $4,858 to $4,841—that’s good news?
So what’s the answer for consumers? Protect yourself. Indeed, the commentary by those who sponsored or produced the report is consistent on this point. And this theme appears over and over again from technology companies, banks, consumer protection organizations and more. The problem is, even if every consumer was vigilant on all fronts to protect their identity, the bad guys have the edge because they are far better armed, organized, more motivated, highly compensated and technologically advanced. The average consumer doesn’t stand a chance—if someone wants to steal your credentials they’re going to do it. The problem is compounded by the explosion of social media that soaks up more and more personal information (Facebook just topped 400 million users) which opens even more doors for fraudsters.
The Javelin report is just another indicator that privacy, security and convenience are on a collision course that is bound to force big changes in the way we interact on the Web.
- Tom
Leave a Comment
The gaping holes are: how many credit cards were compromised in 2008 – we don’t know; That number times the mean fraud loss would give us the picture we need. The missing data only gives us a false sense of accomplishment. A six percent jump could be meaningless.
Also, regardless of all the advances that the bad guys reportedly have over us, the one distinction that is missing from every comparison and expert analysis is that they don’t have to play by the rules. If the good guys didn’t have to play by the rules, the bad guys would be reduced to petty thieves.
GRey