Today, Javelin Strategy & Research issued their 2017 Identity Fraud Study. Identity fraud is at an all-time high with 15.4 million US victims in 2016, up 16 percent from the previous year. That’s a lot of fraud victims, especially when you consider what individuals face when they experience this kind of crime. Many people don’t find out about fraud committed in their name until they find a new credit card statement in the mail or start receiving calls from collections agencies.
A couple different kinds of fraud are driving this change, including account takeover fraud, which is on the rise now after a dip in 2014. Account takeover fraud occurs when someone either adds their name to one of your financial accounts or swaps out your name with their own. The study found that victims paid an average of $263 out of pocket costs and spent a total of 20.7 million hours to resolve it in 2016 – 6 million more than in 2015.
A second type of fraud, new account fraud, continues to be a problem. As new, more secure chip cards are used in stores, fraudsters are shifting to methods of accumulating money, including opening new credit accounts in a victim’s name.
For more about the Javelin study and tips on how to prevent such fraud, check out the press release.