According To The Better Business Bureau Identity Thieves Will Cause A Loss of $52 Billion in 2021-2022
Since 2003, the Business Bureau has been publishing yearly research on the subject of identity fraud.
Over the course of modern history, the number of victims has often ranged between 10 million to 15 million individuals. According to the Business Bureau’s most recent research, a similar figure for the year 2021 is 15 million persons, and the amount of money lost is expected to rise by 79 percent over the previous year to reach $24 billion.
These percentages pertain to what the Business Bureau refers to as “classic identity fraud,” in which the victims frequently are unaware of how their personal information was stolen. It’s possible that criminals have circumvented organizations’ fraud detection technology or that they’ve used malware and other forms of “crimeware” to steal people’s personal information. One example would be a violation of data security.
Agencies have also begun collecting data on “identity fraud schemes,” in which customers are duped into disclosing their personal information via phone calls, email, text messages, or any other form of interaction.
These scams can take place via any of the aforementioned communication channels. According to the findings of the survey, 27 million victims together lost $28 billion due to identity frauds. In their particular situation, people frequently recall the precise moment when they were tricked into supplying the information in question.
This Takes The Overall Number of victims and Amount to 42 Million
In the year 2020, claims of identity theft were the most common kind of complaint submitted to the FTC.
These reports totaled 1.4 million and accounted for roughly a third of all complaints submitted. Identity theft may happen to anybody, regardless of how knowledgeable or experienced they are. According to Eva Velasquez, president and chief executive officer of the Identity Theft Resource Center (ITRC), “If you live in the United States and you have ID credentials, I can promise you will have difficulties with identity theft.”
The following are the top three types of identity theft that have been reported to the FTC:
Fraud involving Official Documents or Benefits to the Government
In particular, and most likely as a direct result of the epidemic, the number of false applications submitted to the government for benefits such as unemployment insurance soared by 2,900 percent.
Credit Card Fraud
The opening of fraudulent accounts greatly exceeded the compromising of already existing accounts.
Fraudulent Applications for Loans or Leases
Over the last year, the number of fraudulent loan and lease applications surged by 127 percent.
Fraud Concerning Taxes or Employment Thefts involving customers’ tax information increased by 225 percent.
There was a significant amount of variation in the reported frequency of identity theft among the 50 states. The state of Kansas came in first place with 1,483 reports for every 100,000 residents. The lowest rate was recorded in South Dakota, with 72 incidents per 100,000 residents. Both Mississippi and Tennessee have high rates of homicides, with Mississippi having 371 per 100,000 residents and Tennessee having 281, placing them 17th and 26th, respectively.
According to the Identity Theft Resource Center, the most common tactic used by identity thieves is conducting cyberattacks. Phishing, malware, ransomware, and data breaches are all included in this category. Impostor scams are another popular method that con artists use to obtain personal information.
These scams involve pretending to be a legitimate organization, such as a government agency, a delivery company (such as FedEx or UPS), or an online love interest. A new deception that takes advantage of the surge in work-from-home opportunities caused by the epidemic is a bogus invitation to a video conference that, when opened, downloads malicious software onto your computer. Additionally, traditional methods like dumpster diving and stealing mail from mailboxes are still in use today.
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The Perspectives of Consumers on Initiatives Related to Safety, Prevention, and Restoration Against Identity Fraud
The survey also provided an overview of customer perceptions in the United States about security, preventive, and recovery activities.
The findings showed that consumers had high expectations regarding the anti-fraud measures implemented by their key financial institutions. Fifty-four percent of people who have been victimised by fraud want their bank to provide them with access to a fraud prevention resource centre so that it can assist them in navigating and resolving their identity theft. Consumers have indicated that they are interested in their financial institutions providing them with additional information on how to avoid being a victim of fraud as well as identity protection services.
According to Linda D’Evelyn, Senior Director of Product at Equifax, “offering an efficient, quick, and transparent recovery process is a valuable differentiator and critical to retaining customers.” This statement was made in light of the fact that one in twenty Americans fell victim to fraud in the year 2021.
“With account takeover dangers on the rise, customers should also be counselled on the benefit of protection that is continually – and passively – running in the background, such as putting credit freezes or fraud alerts,”
The meteoric rise of account fraud demonstrates that criminals will leverage stolen consumer information to extract as much financial benefit as possible, all the while making the resolution process for victims more complicated and adding additional time and expense to recover from what is already an exhausting, stressful experience.
According to Erik Kraus, Vice President of Fraud, Risk and Compliance Solutions at FIS, “The identity fraud landscape is rapidly shifting, and the figures from 2021 show that individuals and institutions alike are woefully unprepared for the tactics criminals are deploying in our modern, digital-first world.”
“The 2021 figures show that individuals and institutions alike are woefully unprepared for the tactics criminals are deploying in our modern, digital-first world.” “Fraudulent account creation and takeover are anticipated to grow again in 2022 unless major, targeted efforts are put into preserving customer information as people live complete lives inspired by digital technology.”
According to Paige Schaffer, the Chief Executive Officer of Iris, one of the most successful methods to make customers feel safe and secure is to assist them in developing safer online behaviours. “The desire of consumers to keep their personal information private and to engage in more secure transactions provides the ideal setting in which to cultivate those behaviours.”
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The emails appeared to come from Scoular Chief Executive Officer Chuck Elsea and the company’s auditing firm in Omaha, Nebraska. The fraud, which occurred in June, was investigated by the Federal Bureau of Investigation.
The company had to go through a lot during this challenging time, like halting its operations and modifying its entire customer-facing application portfolio. Also, to avoid such storms striking ever again in the future, they had to develop strategies that could help save the machine data.
Change all of your passwords right away, remove any malicious software you may have downloaded, and, if necessary, contact your credit card company if you think you’ve been scammed. To report the scam and receive assistance with the next steps, get in touch with your neighborhood law enforcement agency.
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