Identity Theft Statistics - The Real Cost Of ID Fraud

The following research findings has been conducted by a number of market and consumer research companies that include the following sources

• Javelin Strategy & Research 2009 & 2010 survey findings.
• Dataloss DB project.

Overview

Identity theft and fraud is defined as the criminal activity of stealing someone's identity and using that identity to commit fraud. Stealing a persons identity can involve their name and address, social security number or financial data including their bank account and credit card numbers.

With greater accessibility of the world wide web, the increase of online databases and constant flow of personal information online has made ID theft one of fastest growing crimes in the last decade.

Many may consider identify theft and credit card fraud a faceless crime were no physical harm is perpetrated. However, the violation of your own identity can cause immense emotional and financial damage.

Identity Theft Statistics 2010

• Victims

However, according to a recent survey published in February 2011 Javelin Strategy & Research found that the number of people who became victims of identity theft had actually dropped by 28% compared to the identity theft statistics 2009 survey results. This was also first decrease in numbers since they began surveying in 2003.

In 2009 there were just over 11 million victims of ID fraud and this had dropped by 3 million in 2010. Although, it is good to see a drop in the number of victims there are still over 8 million people who have had their personal details and lives violated.  

• Cost

As well as the emotional damage identity theft can also cost you financially. According to Javelin the financial cost or loss due to ID fraud decreased by $19 billion to $37 billion in 2010. This drop also corresponds with the decrease in the number of victims.

Although the above figures show a positive decrease they do not show the true cost of this type of crime. As a victim you are not generally liable for the debt that results from  identity fraud. However, the real cost for the victim is the process of repairing their credit worth and clearing their name.

In certain cases victims may have to hire the professional services of an attorney to prevent them being convicted of a crime that was actually perpetrated by the crook who stole their identity.

This reality can be reflected in Javelins identity theft survey report were there findings revealed that victims expenses in clearing their name increased by more than double to $631 in  2010 compared to only $387 in 2009. 

• Data Breaches

A data breach is where personal and business records being held in a database are at risk of being hacked and stolen by criminals. Based on figures by the Database DB project, data breaches had fallen in 2010 compared to the previous year.

 In 2009 there were just over 600 breaches which amounted to over 220 million data files being at risk. Compared to 2010 the figures look a lot better as there were approximately only 400 breaches which can be translated into 27 million files that were at risk of exposure.

• Types Of Identity Theft (Javelin Strategy & Research identity theft statistics 2009 Study)

If you think that most ID theft is committed online then you would be wrong. The most common way that you can have your personal details violated is by having your wallet or paperwork stolen. This amounts to nearly half (43%)  of all ID theft.

The second most common method that thieves use is through stolen debit or credit cards which amounted to 38% of all identity fraud.

This is followed closely by 37% of victims having their social security number (SSN) stolen.

24% became victims due to the details of their financial accounts being breached.

In relation to internet identity theft statistics, only 11% of people surveyed became victims via this method.

This page will be updated with identity theft statistics 2011 as soon as they are published.

Related Articles:

What Is Identity Theft? | 5 Ways You Could Lose Your ID

How To Protect Yourself From Identity Theft

Identity Theft Laws | Knowing Your Rights

Identity Theft Scams - 8 Scams You Need To Avoid

Identity Theft Tips - 8 Ways To Protect Your ID

5 Identity Theft Tips For College Students

Identity Theft Facebook - Is Your ID Safe

Social Security Identity Theft