ID Fraud Hits Small Businesses Hard
ID Fraud Hits Small Businesses HardBy Ericka Chickowski
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Javelin Research recently wrapped up its study of identity fraud as it hit the U.S. last year, the seventh consecutive such study conducted by Javelin on a topic that has increasingly hit the nightmares of IT professionals and business owners alike. Findings showed an increase in fraud victims, a jump in the cost of fraud and a growing risk to small business owners targeted by the bad guys.
ID Fraud on the Rise
4.8% of the U.S. population was affected by identity fraud in 2009The number of fraud victims in the U.S. increased 12% to 11.1 million adults
SMB Suffers Most
Total fraud damages edged upward by 12.5% to $54 billionSmall business owners suffered from identity fraud at 1.5 times the normal rate of typical consumers
Most Common Fraud
Existing card fraud—typically the trademark of password theft and credential abuse that organizations strive to fight through better authentication—increased very slightly from 2.53% to 2.76% this year but is being more quickly resolved this year than last year
New Account Fraud Up
Fraudulent new credit card accounts increased by six percentage points up to 39%New fraudulently opened Internet accounts more than doubled in 2009
Growing Fraud Types
E-commerce account fraud in particular—including Amazon, eBay and PayPal—increased by 12%New mobile phone accounts made up 29% of fraudulent new accounts opened last yearHealth insurance information is a growing category of fraud, increasing by 4%
Social Networking Vulnerabilities
Social networking opened 18-to 24-year-olds adults to the highest account misuse compared to other age groups