Identity Fraud Increasing; Losses Amount to $16 Billion
Posted by: Timothy Weaver on 02/03/2017 12:47 PM
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More than 15 million people have been affected by identity fraud in 2016.
The losses due to identity fraud are estimated at $16 billion. Those affected increased by 16% over 2015. While identity fraud is not only due to internet usage, most of the fraud occurred due to something that happened online.
“After five years of relatively small growth or even decreases in fraud, this year's findings drives home that fraudsters never rest and when one area is closed, they adapt and find new approaches,” said Al Pascual, senior vice president, research director and head of fraud & security, Javelin Strategy & Research.
The reason for the increase is due to more online shopping and poor cybersecurity hygiene and knowledge by those using social media.
Usage of stolen credit card data increased 40 percent in 2016, primarily due to the increased use of online shopping. Hackers taking over accounts also increased. That form of cybercrime increased 61 percent to $2.3 billion and the number of incidents climbing 31 percent.
The study found that people who are heavily into online shopping and social media were the most hacked. Usage of social media provides much of the information hackers need to hack their life. Putting every detail of their life, their family and job online leave them open to a variety of scams.
Online shoppers run the risk of having the company they are dealing with being breached and their credit card data stolen.
Hackers are also known to create "take this quiz" sites that are designed to gather personal information such as their college, hometown, and interests to hack their accounts.
Source: SCMagazine
The losses due to identity fraud are estimated at $16 billion. Those affected increased by 16% over 2015. While identity fraud is not only due to internet usage, most of the fraud occurred due to something that happened online.“After five years of relatively small growth or even decreases in fraud, this year's findings drives home that fraudsters never rest and when one area is closed, they adapt and find new approaches,” said Al Pascual, senior vice president, research director and head of fraud & security, Javelin Strategy & Research.
The reason for the increase is due to more online shopping and poor cybersecurity hygiene and knowledge by those using social media.
Usage of stolen credit card data increased 40 percent in 2016, primarily due to the increased use of online shopping. Hackers taking over accounts also increased. That form of cybercrime increased 61 percent to $2.3 billion and the number of incidents climbing 31 percent.
The study found that people who are heavily into online shopping and social media were the most hacked. Usage of social media provides much of the information hackers need to hack their life. Putting every detail of their life, their family and job online leave them open to a variety of scams.
Online shoppers run the risk of having the company they are dealing with being breached and their credit card data stolen.
Hackers are also known to create "take this quiz" sites that are designed to gather personal information such as their college, hometown, and interests to hack their accounts.
Source: SCMagazine
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