Identity fraud hit more than 15.4 million Americans in 2016

Identity fraud impacted more than 15.4 million or 6.15% of US consumers in 2016, an increase of 16%. Card-not-present fraud, driven mainly by growth in e-commerce and mobile commerce, grew 40% according to a new report from Javelin Strategy & Research.

An additional 2.3 million more consumers were impacted by identity fraud compared with 2015 and losses exceeded $16 billion. While new EMV chip cards helped reduce some card fraud, research showed criminals shifted their focus to new account fraud.

“After five years of relatively small growth or even decreases in fraud, this year’s findings drives home that fraudsters never rest and when one area is closed, they adapt and find new approaches,” said Al Pascual, senior vice president, research director and head of fraud & security, Javelin Strategy & Research. “The rise of information available via data breaches is particularly troublesome for the industry and a boon for fraudsters. To successfully fight fraudsters, the industry needs to close security gaps and continue to improve and consumers must be proactive too.”

The report identified four key fraud trends in identity fraud:

record high level of fraud affecting 15.4 consumers
card-not-present fraud up 40%
account takeovers increased 61% to reach $2.3 billion
new account fraud.

The report said “digitally connected” consumers are 30% more likely to be victims of fraud.

“Off-line consumers”take longer, an average of 40 days, to detect fraud on their accounts Javelin reported.

“E-commerce shoppers” are also at risk but 78% detect fraud within a week. “Social networkers” are 46% more likely to be affected by fraud the report noted.

Javelin Strategy & Research surveyed more than 5,000 consumers in preparing the 2017 Identity Fraud Study.