These current statistics are a results of surveys taken by an independent research firms Javelin Strategy and Research (2006 statistics) and the Identity Theft Resource Center (2007 statistics). We have not independently verified these findings. A very interesting report released in November 2007 has been compiled by the U.S. Department of Justice. It is attached here as an Adobe file: Department of Justice.
It is popular to quote Identity Theft statistics for sensational discussions. Our position is that Identity Theft is a faceless crime that may be committed against anyone at anytime and at any level of severity, no matter the victims financial status. The only statistic that matters is that it may happen to you. Most people do not purchase insurance products based on how often someone else may need it, they purchase it (many times by law or contract obligations) to the extent they judge their risk exposure. We recommend you interpret these statics as informative and ever changing from year to year.
Click here for one of the best id theft statistics from the FTC Website: Consumer Sentinel
Leaks of Personal Data Swell to a Deluge
Hundreds of millions of people were left vulnerable to identity theft in 2007 because of data breaches, researchers say.
More than 120 million people in the U.S. had personal data exposed in 2007 as identity theft reached record heights. That's according to research from the nonprofit organization the Identity Theft Resource Center (ITRC) which reported 446 separate breaches exposing 128 million records.
The data shows a more-than sixfold increase over its 2006 figures, when 312 incidents were recorded, involving more than 19 million individuals.
Another group, Attrition.org, shows 319 personal information data loss incidents in 2007 in its database, both in the U.S. and other countries.
Criminals can fraudulently use other another person's identity data to buy goods, take out loans, take money from savings accounts, and hire cars. That person has to recover from the loss and endure badgering by debt-recovery organizations and bailiffs.
British Incidents Increase
The U.K. also grappled with numerous incidents of personal data loss, leaving millions vulnerable to potential identity theft. U.K. government agencies alone lost over 28 million people's identity data in 2007. Additional medical data records were lost due to NHS errors. Among the most infamous incidents in 2007 were:
- HMRC and Standard Life - 15,000 records exposed
- HMRC child benefit database - 25 million records lost
- HMRC and Countrywide Assured - 6,500 records leaked
- Northern Ireland Driving Agency - 6,500 records exposed
- Driving Standards Agency - 3 million records lost.
Credit Agencies Note Fraud
The number of new identity fraud victims contacting credit reference checking agency Experian continues to grow: 2,570 victims of identity fraud contacted it for assistance in the first half of 2007; a 68 percent year-on-year increase.
Helen Lord, Experian's fraud and regulatory compliance director at Experian, said: "The rate of identity fraud growth continues to be scary."
Identity theft criminals are being caught and punished. However, ITRC founder, Linda Foley, herself an identity theft victim, said: "Identity theft is like the never-ending story. It acts like an oil spill that spreads in yet another direction with the ocean currents and wind despite best efforts to contain it."
Source: Chris Mellor, Techworld.com From PC World Article Chris sites his source is from the Identity Theft Resource Center
2006 IDENTITY THEFT STATISTICS
Identity Theft At A Glance
From 2006 Identity Fraud Consumer Report:
- In the last 12 months, nearly 8.9 million Americans (4 percent of the population) became victims of identity fraud.
- The good news is, this is an 11.9 decrease from 2003.
- The bad news is, the average fraud amount per victim has increased substantially (21.6 percent) to $6,383 per victim.
- Because many financial institutions do not hold victims responsible for identity theft, the average out-of-pocket expense to consumers is $422.
- The average time to resolve the situation is 40 hours, up from 33 hours in 2003.
- Identity theft and fraud cost $56.6 billion annually; this is essentially the same amount as in 2003.
- The faster fraud is detected, the lower the fraud amount and consumer costs. 47 percent of cases are detected by the victim and this self-detection results in 36 percent lower consumer costs ($347 on average, compared to $422 on average.)
63 percent of identity theft cases were initiated by breaches of information within the victim's control:
- 30 percent lost or stolen wallets, checkbooks, credit/debit cards
- 15 percent by someone you know (friend, family, in-home employee, neighbor)
- 9 percent stolen mail
- 9 percent home computers (hacking, viruses, phishing)
Businesses accounted for 30 percent of the identity theft:
- 15 percent were caused by employee wrongdoing
- 7 percent were fraudulent transactions
- 6 percent were data breaches
Fraud perpetrated by friends/family/in-home employees/neighbors costs more to resolve.
- Fraud perpetrated by an employee at a business costs a consumer an average of $8.
- Fraud perpetrated by someone you know costs a consumer an average of $1,209.
Source: 2006 Identity Fraud Survey Consumer Report, Javelin Strategy and Research.