ID Fraud Hits Small Businesses Hard

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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&#151typically the trademark of password theft and credential abuse that organizations strive to fight through better authentication&#151increased 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&#151including Amazon, eBay and PayPal&#151increased 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