Holiday Alert: You are at greater risk for Identity Fraud thanks to Social Media

Social Media Behaviors put consumers at greater risk for Identity Fraud, according to the 2012 Identity Fraud Report by Javelin Strategy & Research.

Social Media Behaviors Put You at Greater Risk for Identity Fraud

Social Media Behaviors Put You at Greater Risk for Identity Fraud

According to the report, identity fraud increased by 13 percent in 2011 and more than 11.6 million adults in the U.S. were victims, while the dollar amount stolen held steady. The report also took the nation’s most comprehensive quantitative look at consumer behavior and fraud, and found consumers’ social media and mobile behaviors may be putting them at greater risk.

Selected Key Findings from the study you should know:

  1. Identity fraud incidents increased, amount stolen remained steady—The number of identity fraud incidents increased by 13 percent over the past year, but the dollar amount stolen remained steady. Additionally, consumer out-of-pocket costs have decreased by 44 percent since 2004, likely due to the improved prevention and detection tools that have come available as well as fraud alerts leading to reduced detection time.
  2. Social behaviors put consumers at risk—For the first time, Javelin examined. social media and mobile phone behaviors and identified certain social and mobile behaviors that had higher incidence rates of fraud than all consumers.
  3. Despite warnings that social networks are a great resource for fraudsters, consumers are still sharing a significant amount of personal information frequently used to authenticate a consumer’s identity.
  4. Surprisingly those with public profiles (those visible to everyone) were more likely to expose this personal information. Specifically,
    1. 68 percent of people with public social media profiles shared their birthday information (with 45 percent sharing month, date and year);
    2. 63 percent shared their high school name
    3. 18 percent shared their phone number
    4. 12 percent shared their pet’s name—­all are prime examples of personal information a company would use to verify your identity.
  5. Smartphone owners experience greater incidence of fraud—The survey found seven percent of smartphone owners were victims of identity fraud. This is a 1/3rd higher incidence rate compared to the general public.

Part of this increase may be attributable to consumer behavior:

  • 32 percent of smartphone owners do not update to a new operating system when it becomes available;
  • 62 percent do not use a password on their home screen—enabling anyone to access their information if the phone is lost; and
  • 32 percent save login information on their device

Data Breaches increasing and more damaging — One likely contributing factor to the fraud increase was the 67 percent increase in the number of Americans impacted by data breaches compared to 2010.

Javelin Strategy & Research found victims of data breaches are 9.5 times more likely to be a victim of identity fraud than consumers who did not receive such a data breach letter.

The 2012 Identity Fraud Report: Social Media and Mobile Forming the New Fraud Frontier was released by Javelin Strategy & Research, sponsored by Fiserv, Intersections, Inc. and Wells Fargo.

Read more: https://www.fiserv.com/resources/2012-identity-fraud-report.aspx