Identity Theft, Fraud Exploding in 2020
Identity theft and fraud are on the rise, increasing the costs to both consumers and the businesses they deal with, according to a recent study from Javelin Strategy & Research, which showed that losses related to identity fraud have increased some 15%.
The “2020 Identity Fraud Report” also revealed another troubling trend in which criminals are now using high-tech schemes to hijack consumer accounts, despite the methods financial institutions are putting in place to identify and respond to identity fraud. The increase in losses is due to a shift in tactics from cybercriminals, who are now focusing on fraudulently opening and taking over accounts instead of credit card fraud.
“These findings should be a wake-up call for financial institutions, the payments industry, businesses and consumers across America,” said Krista Tedder, head of fraud with Javelin Strategy & Research. “The data is proof of what we’ve long known: The full weight of identity fraud lies not only in counterfeit credit cards and magnetic stripes but in full account takeover and new account fraud. Now it’s time to elevate our understanding of what security, detection and resolution really mean.”