Identity Fraud Down

For the time being, identity fraud appears to be on a downswing, at least according to a recent report commissioned by CheckFree, Visa, and Wells Fargo.

The study, entitled "The 2007 Identity Fraud Survey Report" and conducted by Javelin Strategy and Research found that:

• Identity fraud in the U.S. appears to be dropping by an estimated 12 percent over the previous year -- a total fraud reduction of $6.4 billion.
• Fraudulent new account openings are down.

According to the report, about 500,000 fewer U.S. adults fell victim to identity fraud in 2006 than in 2005. Translated to dollars, identity fraud in this year’s report dropped by an estimated 12 percent over the previous year, from $55.7 billion to $49.3 billion.

What's behind the decline? Consumer education and awareness, and the increased use of online banking and financial sites that let us more frequently monitor our accounts.

"Thanks in part to comprehensive data protection, fraud monitoring, and consumer education, we now have more effective methods to quickly catch -- or even prevent -- fraud before it occurs by utilizing common online technologies such as electronic banking and bill payment," says Javelin’s James Van Dyke.

New account fraud dropped from 1.5 percent of all respondents in 2006 to 1 percent in 2007. Additionally, when fraudulent accounts are opened, many victims caught the fraud more quickly utilizing online channels, such as the viewing of statements, resulting in average fraud amounts dropping from more than $10,000 in 2006 to $7260 on average in 2007.

Posted by Jon Erickson at 06:51 PM  Permalink