The number of identity fraud victims in the US jumped 12% last year, reaching 11.1 million adults, which represents almost 5% of the adult US population. The total fraud amount increased by 12.5%, reaching $54 billion, and Javelin Strategy and Research's telephone survey of 5,000 US adults also identified an increase in computer-based crimes and non-card fraud.
Existing card fraud increased moderately to 2.76% of overall fraud, compared to 2.53% last year, although the report suggested that cases of identity fraud using existing cards are being resolved more quickly with the help of financial institutions and businesses.The average resolution time now rests at 21 hours.
The most common methods of fraud involved making purchases in person or online. Fourty-two percent of victims had their information used in this way. "Because online purchases require only a credit or debit card number, this method of fraud is increasingly favored by criminals," the report said. "Additionally, slightly more than 20% of victims had their information used to make phone or mail-order purchases."
This is reflected in the average cost of identity fraud. Out-of-pocket costs such as unreimbursed losses, lost wages, and possible legal fees have fallen to $373 per incident, with most victims experiencing no costs at all, according to the report.
However, checking accounts and utility accounts are being increasingly used to conduct fraud, often with the help of malware, which is not being detected as quickly as card-based theft. The number of fraudulently opened internet accounts more than doubled in the last year, and fraudulent ecommerce accounts through services such as eBay and Amazon increased 12%. New mobile phone accounts made up 29% of all fraudulent new accounts opened in 2009.
"Such fraud results in higher out-of-pocket consumer costs and much longer detection times of up to one year or more," the report said.
Small business owners were the most likely to suffer from identity fraud, thanks to the use of their own personal accounts for business transactions. They suffer identity fraud 1.5 times more than other US adults, the survey found.
Significantly, millenials (aged 18–24) were more likely to suffer from account misuse via social networking. They also took the longest time to detect a fraud, at 132 days.