Consumers Rank Identity Theft the Second Highest Risk Factor

By Mark Pribish
Vice President & Identity Theft Practice Leader

According to InfoSecurity Magazine (please see here) ID thieves are getting more successful at leveraging stolen data for ill-gotten gains. Of the 16 million victims notified in 2012 that their payment card information was compromised in a data breach, more than 25% of them also suffered identity theft.

The above InfoSecurity article referenced a September 2013 Javelin Strategy & Research report titled Data at Rest is Data at Risk (please see here) which revealed that payment card and Social Security number data breach victims suffer the highest rates of related fraud, especially in the retail, financial and healthcare sectors.

Of the 16 million consumers receiving data breach notification letters, Javelin Strategy & Research highlighted the following:

• 4.4 million consumers were notified that their payment card information was compromised resulting in ID Theft specific to their existing credit or debit cards.
• 1.26 million consumers were notified that their Social Security numbers were compromised and became victims of identity theft.
• 270,000 consumers were notified that their online banking credentials were compromised and experienced ID Theft related to their checking and savings accounts.
• 324,000 consumers had their bank account numbers compromised and became ID Theft victims related to their checking, savings or other financial accounts.

Based on the above, it is easy to understand how consumers rank identity theft the second highest risk factor (just under financial concerns but more interestingly above health concerns and personal safety) as a significant consumer risk factor (please see here).

The Travelers Consumer Risk Index is a new, annual survey of the risks Americans believe are most prevalent in their lives.

For example, just a half of a generation ago, identity theft and distracted driving did not exist. On the other hand, some risks stand the test of time such as financial concerns.

While you can read the Travelers Consumer Risk Index report here (click to read) I have listed below the Top 5 Risks including:

1. Financial Concerns and Risks - 68%
2. Risk of Personal Privacy Loss/Identity Theft - 64%
3. Risk of Serious Health Problem - 60%
4. Personal Safety Concerns and Risks - 44%
5. Extreme Weather/natural disasters - 43%

Whether you are an individual consumer or a small business owner, you need to think about new and old risks and how to be proactive in protecting yourself, your family and/or your small business.