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					Electronic Transaction Use
             &
   Risk of Identity Theft
        Why Consumers Don’t Access
           Bank Accounts Online
 Earlier you indicated that you do not access your bank accounts online.
 Which of the following describes why you have not done so?




                                                              Percentage of Those Who Do Not
                                                                  Access Account Online
Source: Javelin Strategy & Research (5/03), n = 2,877 (those who do not access account online)
                       The Reality
There IS a lot of fraud on the Internet
Fraudsters and Security experts have been playing cat-
and-mouse for years
– Fraudsters and Prevention experts must constantly out-
  innovate one other
– Government and industry-coalition actions are ineffective.
  Who will lead? Who can you trust?
Consumers are unable to determine which actions will
decrease their personal risk. Therefore, despite benefits
and incentives, they resist change.
                        Identity Theft Costs

Average to businesses: $4,800
Average to individuals: $500 (out of pocket)
Average time to individuals: 30 hours per case
With any serious personal injury, time spent
worrying greatly outweighs time spent in affliction
or recovery.
– Example: lightning strikes and shark bites affect few,
  but the fear is nearly universal

     Data Source: FTC Identity Theft Survey Report, 9/03
                          New Account Fraud:
                       Less Prevalent, More Costly

                                               New Accounts                   All ID Theft
                                               & Other Frauds
Victims in the Last Year
Percentage of Population                                             1.5%                     4.6%
Number of Persons                                             3.23 million              9.91 million
Loss to Businesses, Including Financial Institutions
Average per Victim                                                $10,200                    $4,800
Total                                                         $32.9 billion            $47.6 billion
Loss to Victims
Average per Victim                                                  $1,180                     $500
Total                                                          $3.8 billion               $5 billion
Hours Victim Spent Resolving Problem
Average per Victim                                               60 hours                 30 hours
Total                                                    194 million hours        297 million hours



        Source: FTC Identity Theft Survey Report, 9/03
                                            New Accounts Opened by
                                                Identity Thieves
     Percentage of New Accounts Opened by
                Identity Thieves




4E      Source: FTC Identity Theft Survey Report, 9/03
                        Existing Account Fraud:
                       More Prevalent, Less Costly

                                                Misuse of                         All ID Theft
                                            Existing Accounts
Victims in the Last Year
Percentage of Population                                     Credit card: 2.4%                    4.6%
                                                         Non-credit card: 0.7%
Number of Persons                                                  6.68 million             9.91 million
Loss to Businesses, Including Financial Institutions
Average per Victim                                                      $2,100                   $4,800
Total                                                               $14 billion            $47.6 billion
Loss to Victims
Average per Victim                                                        $160                     $500
Total                                                              $1.1 billion               $5 billion
Hours Victim Spent Resolving Problem
Average per Victim                                                   15 hours                 30 hours
Total                                                        100 million hours        297 million hours


        Source: FTC Identity Theft Survey Report, 9/03
              How Victims Discovered ID Theft

Despite sophisticated
                                                          Detection
   fraud detection
systems, most identity                                    Is Greatly
theft is discovered by                                    Improved
the victim, when they                                        Here
view an mailed paper                                         -Javelin

       statement!




         Source: FTC Identity Theft Survey Report, 9/03
                  Education is Needed
FACT-based consumer awareness:
– Fraud occurs in every channel
– Paper should not be equated with safety
– Just because fraud occurs online, doesn’t mean it was
  caused online
– Even offline consumers can be a victim of “online” fraud
    • Much online fraud starts (or is prevented) offline.
– Consumer tips should include online recommendations
– Online statement viewing, bill payment, and banking can
  reduce overall risk of identity fraud by over 10%
    • Current available US economic benefit is $4.86B
    • With greater industry participation, this figure will rise

				
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posted:12/7/2013
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