Tag Archives: Identity theft

Business identity theft: An emerging threat

Individuals are not the only ones at risk of identity theft. Increasingly, businesses are contending with criminal use of their identity for tax fraud, credit card and other financial fraud, as well as having their websites and business name trademarks held for ransom.

A recently released report by the National Cybersecurity Society states that criminals are combining stolen data from data breaches with business intelligence to create large tax returns; wire transfers and ransoms which are fueling an underground economy of organized crime.

The IRS reported 4,000 instances of business identity theft cases in 2016. In 2017 that figure soared to 10,000, the largest year-over-year increase on record. Damages were estimated at $268 million in 2016, but curiously declined to $137 million in 2017.

The Insurance Information Institute has facts and statistics on identity theft here.

 

Data Breaches Becoming More Damaging

Recent breaches of customer data at retailer Target and banking giant Barclays are making headlines and underscore the growing risk to businesses from data breaches.

Of course, there’s a personal impact too.

The just-released 2014 Identity Fraud Report by Javelin Strategy & Research reveals that data breaches are now the greatest risk factor for identity fraud.

In 2013, one in three consumers who received notification of a data breach became a victim of fraud, up from one in four in 2012, the report found.

Some 46 percent of consumers with breached debit cards in 2013 became fraud victims in the same year, compared to only 16 percent of consumers with a social security number breached.

Other key takeaways from the report are that the overall incidence of fraud has increased even though the amount stolen has decreased.

The number of identity fraud victims increased by more than 500,000 to 13.1 million people in 2013, the second highest number since the study began. However, the dollar amount stolen fell to $18 billion, down from $21 billion in 2012.

This reflects more aggressive actions from financial institutions, identity theft protection providers and consumers, Javelin Strategy said.

There has also been a dramatic increase in account turnover fraud in the past year. According to the findings, account takeover fraud accounted for 28 percent of all identity fraud in 2013, a new record for the second year in a row.

Fraudsters also increasingly turned to eBay, PayPal and Amazon with the stolen information to make purchases.

Check out I.I.I. information on identity theft and cyber security here.