2011 Identity Fraud Survey Report: Identity Fraud Decreases – but Remaining Frauds Cost Consumers More Time & Money

In 2010, identity theft and fraud claimed fewer victims than in any  other period since Javelin began conducting surveys in 2003. Driving  that decrease was the reduced rate of existing account fraud,  although incidents of all types of fraud dropped from 2009. 

Meanwhile, consumer costs, the average out-of-pocket dollar   amount victims pay, increased, reversing a downward trend in recent  years. This increase can be attributed to new account fraud, which  showed longer periods of misuse and detection and therefore more  dollar losses associated with it than any other type of fraud. The  Javelin 2011 Identity Fraud Survey Report provides  a detailed,  comprehensive analysis of identity fraud in the United States to help  consumers and businesses better understand the effectiveness of  methods used for its prevention, detection and resolution. A  nationally representative sample of 5,004 U.S. adults, including 470  fraud victims, was surveyed via a 50-question phone interview,  providing insight  into this crime and the effects on its victims. This  report, supported by the Better Business Bureau, is issued as a  longitudinal update to the Javelin 2005, 2006, 2007, 2008, 2009 and  2010 Identity Fraud Survey reports and the Federal Trade  Commission’s (FTC’s) 2003 report.   

Javelin’s eighth annual Identity Fraud  Survey Report is the most  comprehensive research study of the subject in the United States. It  assesses the effectiveness of methods used for fraud prevention,  detection and resolution and provides the basis for fact-based  benchmarking and recommendations. SHOW LESS READ MORE >

Overview
Executive Summary
Major Findings
Recommendations
Consumer Recommendations
Consumer Recommendations for Financial Institutions
Merchant Recommendations for Consumer Data
Quick Reference Guide to Identity Fraud
Measuring the Impact of Identity Fraud
Fraud by State
Existing Accounts Fraud
Existing Card Accounts Fraud
Credit vs Debit Card Fraud
Store-Branded vs Network-Branded Credit Cards
Existing Non-Card Accounts Fraud
Account Takeovers
New Account and Other Frauds
Preventing Identity Fraud
Data Breaches
Sidebar: Arrests Curb Data Breaches in 2010
Friendly Fraud
Detection
The Identity Fraud Life Cycle
Methods and Channels Used to Perpetrate Fraud
The Duration of Misuse
Length of Time to Detect Identity Fraud
Which Method of Detection Is Most Effective?
Resolution
New Accounts Fraud Results in Longer Resolution Times
How Consumers React to Identity Fraud
Sidebar: Consumers Who Are 25 to 34 Years Old Are Most at Risk
Consumer Profiles: An Overview
Risks by Gender
Risks by Income
Risks by Ethnicity
Risk by Use of Social Networking
Glossary
Methodology
Appendix
Related Research
Companies Mentioned

Tables of Figures:

Figure 1: Overall Measures of the Impact of Identity Fraud, 2003–2010
Figure 2: Number of Victims and Incidence Rates of Identity Fraud, 2003–2010
Figure 3: Retail Sales vs Identity Fraud Incidence, 2003–2010
Figure 4: Unemployment Rate vs Identity Fraud Incidence, 2003–2010
Figure 5: Gross National Product vs Identity Fraud Incidence, 2003–2010
Figure 6: Historical One-Year Incidence Rates by Identity Fraud Type, 2007–2010
Figure 7: Incidence Rates by Identity Fraud Type, 2005–2010
Figure 8: Identity Fraud Amounts by Type, 2005–2010
Figure 9: Identity Fraud Incidence by Fraud Type, 2008–2010
Figure 10: Identity Fraud Overview, 2008–2010
Figure 11: Existing Account Fraud Overview (Card and Non-Card Combined), 2007–2010
Figure 12: Existing Card Fraud Overview, 2008–2010
Figure 13: Existing Debit Card Fraud Overview, 2008–2010
Figure 14: Existing Credit Card Fraud Overview, 2008–2010
Figure 15: Existing Non-Card Fraud Overview, 2008–2010
Figure 16: New Account Fraud Overview, 2008–2010
Figure 17: Total Annual Cost of Fraud and Fraud Incidence Rates, 2003–2010
Figure 18: US Fraud Incidence Rate Trends by State, Averaged over the Past Three Years (2008-2010)
Figure 19: Existing Account Fraud Mean Fraud Amounts and Incidence Rates, 2005–2010
Figure 20: Existing Card Mean Fraud Amounts Fraud and Incidence Rates, 2005–2010
Figure 21: Credit Card and Debit Card Existing Card Fraud, 2009 vs 2010
Figure 22: Mean Fraud and Consumer Costs for Debit and Credit Cards, 2010
Figure 23: Fraud Incidence Rate for Existing Credit Cards and Debit Cards, 2009 vs 2010
Figure 24: Period of Misuse for Credit Cards and Debit Cards, 2010
Figure 25: Debit and Credit Card Fraud by Income of Victims, 2010
Figure 26: Mean Fraud Amount and Consumer Costs for Store- and Network-Branded Credit Cards
Figure 27: Existing Non-Card Fraud Incidence Rates and Mean Fraud Amounts
Figure 28: Types of Existing Non-Card Accounts Misused, 2008–2010
Figure 29: New Account Misuse by Type, 2009–2010
Figure 30: Account Takeover Methods, 2008–2010
Figure 31: New Account Fraud Incidence Rates, Mean Fraud Rates and Total Fraud Amounts, 2004–2010
Figure 32: Personally Identifiable Information Stolen from Fraud Victims, 2010
Figure 33: Fraudulent New Accounts Opened, 2009–2010
Figure 34: Consumers Notified of Data Breaches, 2008 vs 2010
Figure 35: Consumers Who Received a Data Breach Notification by Income, 2010
Figure 36: Identity Fraud Victims Who Also Received a Data Breach Notification, 2010
Figure 37: Number of Reported Breaches and Exposed Records, 2008–2010
Figure 38: Information Stolen from Data Breach Victims, 2010
Figure 39: Friendly Fraud by Account Type, 2009–2010
Figure 40: Mean Dollar Value Stolen Through New Accounts Fraud, 2009–2010
Figure 41: Types of Existing Non-Card Accounts Misused, 2008–2010
Figure 42: Mean Fraud Duration and Detection Times by Self-Detection and External Detection, 2010
Figure 43: Identity Fraud Life Cycle, 2008–2010
Figure 44: Methods of Misuse of Financial Account Information, 2009–2010
Figure 45: Mean Days of Misuse by Fraud Type, 2006–2010
Figure 46: Period of Misuse by Fraud Type, 2010
Figure 47: Days to Detect Fraud by Detection Method, 2008–2010
Figure 48: Detection Time by Fraud Type, 2010
Figure 49: Ways That Identity Fraud Is Detected, 2010
Figure 50: Fraud Detection Methods, 2008–2010
Figure 51: Fraud Amount by Detection Method, 2008–2010 (Not inflation-adjusted)
Figure 52: Credit and Debit Card Fraud Detection by Method, 2010
Figure 53: Mean Consumer Cost by Detection Time
Figure 54: Mean Number of Hours to Resolve Fraud by Fraud Type, 2008–2010
Figure 55: Reported Severity of the Impact of Fraud on Victims by Fraud Type, 2010
Figure 56: Legal Actions Taken Since Becoming A Fraud Victim, 2008–2010
Figure 57: Fraud Victims’ Financial Behaviors, 2008–2010
Figure 58: Incidence of Identity Fraud by Age, 2010
Figure 59: Stolen Social Security Numbers by Age, 2010
Figure 60: Fraud Rates, Costs and Misuse Times by Gender, 2010
Figure 61: Types of Fraud by Gender, 2010
Figure 62: Fraud Incidence by Income, 2010
Figure 63: Fraud Incidence by Ethnicity, 2010
Figure 64: Debit Card Fraud by Ethnicity, 2010
Figure 65: Use of Privacy Settings on Social Networking Sites by Age, 2010
Figure 66: Numbers of Victims Before and After Weighting, 2003–2010
Figure 67: Mean Dollar Value of Misappropriated Funds by Methodology, 2010
Figure 68: Dollar Cost Estimates of Fraud Amounts, 2003–2010
Figure 69: Resolution Costs for Identity Fraud Victims Who Did and Did Not Receive a Data Breach Notification, 2010
Figure 70: Identity Fraud Victims’ Awareness of the Way Their Information Was Obtained, 2010
Figure 71: Identity Fraud by Age
Figure 72: Victims of Friendly Fraud by Age, 2008–2010
Figure 73: Severely Impacted Fraud Victims by Gender, 2010

- 7-Eleven 
- JCB International 
- American Express 
- JCPenny 
- Barnes & Noble 
- LinkedIn 
- BJ's Wholesalers 
- MasterCard 
- Boston Market 
- Office Max 
- Dave & Buster's 
- PayPal 
- Discover Financial Services 
- Sports Authority 
- DSW 
- Target 
- Facebook 
- The New York Times 
- Forever 21 
- TJX 
- Hannaford 
- Visa