Every year, around one in every twenty Americans is a victim of identity theft. According to Javelin's 2020 Identity Fraud Survey, 13 million Americans were victims of identity fraud in 2019, resulting in total fraud losses of over $17 billion. The average loss per person was $1,171.
The most common form of identity theft is credit card fraud, followed by bank account fraud and then name-brand theft (i.e., counterfeit goods). Social security numbers are the most common component used in fraudulent activity (44 percent), followed by names (16 percent) and addresses (9 percent). Credit scores also represent a large target for thieves; around seven percent of respondents reported that their credit score was negatively affected by fraud.
Identity theft can have significant consequences for its victims. Around eight percent of respondents reported an increase in their monthly household expenses as a result of fraud, while four percent said they had trouble obtaining loans or mortgages. Victims may also experience stress and anxiety about how to resolve the issue. About half of all respondents said that they tried to resolve the problem on their own before contacting law enforcement or their insurance company.
In conclusion, identity theft is very common and has serious financial implications for its victims. It is important to be aware of your personal information and how it is being used so you can take steps to prevent yourself from becoming a victim.
In 2019, 14.4 million customers were victims of identity fraud, accounting for around one in every fifteen persons. In the United States, 33 percent of Americans have suffered identity theft, which is more than double the global average.
The number of incidents of ID fraud has increased by almost 50 percent since 2013, when 9.5 million individuals became victims of this crime. The vast majority of cases (93%) involve someone obtaining your personal information such as your social security number or birth date and using it with some other form of identification (such as a photocopy of your driver's license) to commit fraud. Sometimes this information is obtained by hacking into databases full of personal data or by sending fraudulent emails pretending to be from a trusted source. In other cases, thieves simply wait for you to hand over your information during a transaction with a financial institution, public utility, or retail store. No matter how it happens, once your information has been stolen it can be used to open new accounts in your name, charge purchases to these accounts, and withdraw money from existing accounts. This may all seem harmless, but it can have serious consequences for your reputation and financial stability.
Identity theft can also lead to long-term problems if your personal information is sold to other parties. For example, your name and address could be provided by a credit reporting agency to companies that want to send you promotional materials.
Identity fraud increased by 13% in the United States in 2011, with over 11.6 million individuals being victims of ID theft. Identity theft is more than just a bother. It can have major ramifications for both your finances and your life. Many individuals associate identity theft with financial deception. However, that is only one type of identity theft. There are others such as data breach or information exposure where their is no fraudulent intent involved.
In addition to losing money, credit ratings, and having your identity stolen, people who have their identities stolen often feel anxious, angry, and betrayed by their experience. According to TransUnion, around half of all identity theft victims will be re-victimized because they fail to adequately protect their personal information.
There are two main types of identity theft: consumer identity theft and business identity theft. Consumer identity theft involves the misuse of information about an individual person. This could include someone's social security number, bank account numbers, or credit card details. Business identity theft involves the misuse of information about a company. This could include names, addresses, phone numbers, email addresses, or customer credit card details.
Both consumer identity theft and business identity theft can be used to commit other crimes such as fraud or harassment. For example, if you find out that your credit score has been negatively affected by identity thieves, this could make it harder for you to get a home loan or rent an apartment.
According to a 2021 analysis by Javelin Strategy & Research, identity fraud schemes cost victims $43 billion, whereas classic identity fraud costs victims $13 billion. The average loss for an identity theft victim is $1,100, according to the Javelin survey. But many victims lose more than that; one in five victims have losses of $10,000 or more.
Below are some other estimated costs associated with identity theft:
Legal fees - $35 million
Loss of income - $5 billion
Redress requests - $2.5 billion
Stolen credit card fees - $3.5 billion
Total cost - $73 billion
Businesses spend an estimated $7 billion annually on security measures, such as security audits, forensic support, and incident response plans. This includes both internal and external parties who work with business data, such as hackers, phishers, and intruders. The main drivers of this cost are labor and technology, with technology accounting for nearly 70% of the total cost.
More than one in every four older persons, aged 55 and over, has been a victim of identity theft. It is estimated that ID thieves steal personal information from hundreds of millions of people worldwide each year.
Identity theft is a crime that can have serious consequences for its victims. It can lead to problems paying bills, getting new credit cards, or obtaining government services like passports or drivers licenses. Identity theft can also cause emotional distress because it can result in the loss of credit ratings, the need for new identification documents, and even damage to a person's reputation.
Who is most likely to be victimized by identity theft? People who live in large cities, especially those with a high number of immigrants without legal documentation. In addition, younger adults are at greater risk because they tend to use email less frequently than older people; therefore, their accounts are easier to access if they become a target for fraudsters.
Identity theft can be accomplished through several methods. The thief may use information obtained from public records, such as driver's license numbers, to create false documents that appear to come from the victim. They may use this information to get jobs, buy items in the victim's name, or even vote in elections.