Identity Theft Down, Losses Up

The number of identity theft victims in 2010 dropped 28 percent, yet individuals lost more on average than ever before, suggesting that attackers’ techniques are getting more sophisticated.

According to a survey on consumer fraud released by Javelin Strategy & Research on Tuesday, annual fraud was down to from $56 billion in 2009 to $37 billion in 2010. The number of victims decreased as well -- to 8.1 million people in the U.S, down from 11 million people in 2009, Reuters reports.

When it comes to losses however, Javelin notes that they jumped from $387 to $631 per incident, a jump of about 60 percent. The research group points out a growing trend in “friendly fraud,” a term that describes fraud committed by someone who knows the victim. Friendly fraud has seen a 7% uptick in the last year and usually results in a stolen Social Security number. Additionally, new account fraud, when a new account is opened without the victim’s understanding, reaped $17 billion, more than any other type of fraud.

Read the full article. [Reuters]

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