Identity Fraud Just Jumped! Be Aware and Smart to Stay Secure

Many Victims 

Identity theft and fraud are now at records levels! Researchers at Javelin Strategy & Research calculated a 16% increase over 2015 figures, with over 15 million victims collectively being impacted to the tune of $16 billion dollars.  These numbers are significant and according to the Identity Fraud Study, account for about 6% of all consumers. Account takeovers (ATO) losses reached $2.3 billion, up a brisk 61%. New-account fraud (NAF), where criminals open new accounts in the victim’s name, also increased as a way to sidestep EMV card security.    

For credit cards, the fraud levels for in-store purchases remained the same while levels for Card-Not-Present (CNP) transactions skyrocketed by 40 percent. I was recently at a conference and was speaking to the cybersecurity manager for a large brick-and-mortar retailer. He indicated the same challenges where in-store losses were easing due to new credit-card security features, while online fraud from their website was increasing fast. Fraud and theft was not going away. Instead it was shifting to new avenues. It is like squeezing a balloon. From a threat perspective, it makes senses as thieves will continue to pursue their objectives and take the path of least resistance to achieve desired financial gains.      

How to Protect Yourself? 

Nobody should feel safe. Given the amount of personal information and data records being lost or stolen, just about anyone could be a victim. In 2016 over 4 billion data records were breached.    

First, do everything to protect your personal information. Don’t voluntarily give it out, share it, or make it easily available. Don’t throw away statements or receipts containing account numbers or balances, without destroying them first. Avoid providing personal details when you don’t need to, including your address, place of birth, social security numbers, insurance information, and such. Be protective over your private data as if it were an egg. Because once the confidentiality is broken and available to the public, there is not much that can be done to make it private again.   

Secondly, check your credit report and billing statements regularly! Look carefully to verify all the charges on your statement are legitimate. If you see a small, unknown charge, it may be at test by a criminal to verify it is a good account, and prelude to an authorized shopping spree. Immediately contact your credit card vendor and challenge all unauthorized charges. The card company will likely change your account number and immediately send you a new card.    

Equally important is to look at your credit report. In the U.S. you are allowed, by law, to receive a free report from each credit bureau once a year. Verify that nobody has opened another credit line in your name, which could appear as a credit card or even a loan. If so, report it immediately. Also, look to see if anyone has made an inquiry to your credit standing. Many thieves will check the available credit of their victim to see how much they can spend and if they are able to make a big purchase.    

Lastly, protect your cards. Sounds simple, but try not to let them out of your sight. Even at restaurants, it is better to process the transaction within your view. Crooked employees can easily write down the account number and code from the back of the card, if nobody is looking. Make sure your cards support the new chips which do make it more difficult for attackers to create a counterfeit card or transactions.    

Overall, know that your choices and actions do play a significant role in your security and privacy.    

Image Source: https://www.javelinstrategy.com/press-release/identity-fraud-hits-record-high-154-million-us-victims-2016-16-percent-according-new     

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