Along with technological developments in recent years, identity theft has been on the rise. Fraud statistics have significantly changed in different areas. Examples of identity theft include data breaches, stolen bank account information, and stolen credit card information.
Data breaches and undermined credit card cases appear in the news more often. With all the instances of data breaches, fraud is the first thing on everyone’s mind! Using Europay, MasterCard, and Visa (EMV) chip cards offers considerable options for making online payments secure and safe. But, EMV chip cards are not reliable when it comes to specialists predicting fraud. These cards are not able to offer security in non-card-present transactions. With the lack of security, these data breaches are sure to continue in the future.
Fraud Statistics: Data Breaches
The first significant business data breaches started to appear in 2014 and continued into 2015. This threat to data safety and security is still lurking. The majority of Americans anticipated it to be a short-lived trend. This belief disappeared as large-scale businesses became the bull’s eye of cyber criminals. In September 2017, a massive data breach occurred at Equifax, the renowned credit bureau. The data breaches have continued to rise, but the advancements in cyber security have advanced as well.
Fraud Statistics: Identity Theft and Card Fraud
From 2012 to 2016 onwards, the FTC’s (Federal Trade Commission) online databank of customer complaints amassed 13 million grievances in the year 2016 alone; it reached 3 million. Of those, approximately 13% were linked to identity theft complaints and about 42% to fraud.
There were about 1.3 million fraud-related grievances. Customers stated that they had paid more than $744 million towards those fraud complaints. An average of $450 was paid to these companies. 51% of the customers who conveyed a grievance related to fraud also stated the quantity paid.
Around 55% of the grievances related to fraud listed a process of the first contact with the companies. Of those, about 77% were communicated by phone, whereas just 8% were initially communicated by email, and only 3% were reached by mail.
How Are Fraud Victims Affected?
As per the report “Identity Theft: The Aftermath 2016” by The Identity Theft Resource Center, about 20% of the American citizens surveyed were victims of some sort of illegal ID theft in the year 2015. From those, about 9.2% stated that their ID was utilized to perform a financial crime, which ended in a custody permit.
The aftermaths of this illegal ID are astounding. About 55% of victims failed to fulfill their work hours, and around 44% stated that they lost an employment prospect. Also, roughly 60.7% needed to borrow cash, and 29.5% were obliged to appeal for government aid, such as food stamps or welfare.
In Conclusion
With the rapid advancement of technology, it has become increasingly important for individuals to safeguard themselves in the virtual realm. As scammers continuously devise new methods to deceive and exploit people for personal gain, it’s imperative for people to empower themselves with the knowledge to ensure their protection. The Federal Trade Commission (FTC) serves as an invaluable resource and ally in the ongoing battle against cyber threats. It is essential for both personal and professional reasons to remain vigilant and stay informed about the latest scamming trends, and to also educate and alert others. By increasing transparency and awareness, we can effectively limit the opportunities for criminals to perpetrate these malicious activities, thereby reducing the harm inflicted on our society.
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