ID Fraud: New Accounts Most at Risk
The latest consumer fraud trends suggest that financial institutions must provide increasing leadership in the fight against identity-related fraud.
According to new findings from Javelin Strategy & Research, consumers and law enforcement alike now turn to banks and credit unions for more sophisticated detection and prevention when it comes to the misuse of stolen identities to open new accounts.
In its annual Identity Fraud Survey report, Javelin finds that losses from new account fraud far exceed those associated with other types of ID fraud. Moreover, new account fraud is harder to detect.
While Javelin finds that the number of ID fraud incidents dropped 28 percent from 2009, when ID fraud reached an all-time high, in 2010 the expense associated with recovering from ID fraud increased 66 percent.
Please refer here to download the report.