As businesses increasingly depend on electronic data and computer networks to conduct their daily operations, growing pools of personal and financial information are being transferred and stored online. This can leave individuals exposed to privacy violations and financial institutions and other businesses exposed to potentially enormous liability, if and when a breach in data security occurs.
The Consumer Sentinel database, maintained by the Federal Trade Commission, contains over 9 million consumer fraud and identity theft complaints that have been filed with federal, state and local law enforcement agencies and private organizations over the five years 2009 to 2013. In 2013 alone, over 2 million complaints were filed.
The increase in online shopping in recent years has created new avenues for identity thieves. However, a 2013 study by Travelers Insurance of its 2011 identity fraud claims found that burglary and theft of physical objects led to the majority of identity fraud claims. The study identified the following four top causes of identity fraud:
- Stolen wallet or purse (44%)
- Auto burglary (16%)
- Online (15%)
- Home Burglary (12%)
IDENTITY THEFT AND FRAUD COMPLAINTS, 2011-2013 (1)
(1) Percentages are based on the total number of Consumer Sentinel Network complaints by calendar year. These figures exclude “Do Not Call” registry complaints.
Source: Federal Trade Commission.
HOW VICTIMS’ INFORMATION IS MISUSED, 2013 (1)
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(1) Percentages are based on the total number of complaints in the Federal Trade Commission’s Consumer Sentinel Network (290,056 in 2013). Percentages total to more than 100 because some victims reported experiencing more than one type of identity theft (16% in 2013).
(2) Includes fraud involving checking and savings accounts and electronic fund transfers.
Source: Federal Trade Commission.
IDENTITY THEFT BY STATE, 2013
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(1) Population figues are based on the 2013 U.S. Census population estimates.
(2) Ranked per complaints per 100,000 population. The District of Columbia had 147.9 complaints per 100,000 population and 956 victims. States with the same ratio of complaints per 100,000 population receive the same rank.
Source: Federal Trade Commission.
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CYBER SECURITY
In 2000 the Federal Bureau of Investigation, the National White Collar Crime Center and the Bureau of Justice Assistance joined together to create the Internet Crime Complaint Center (IC3) to monitor Internet-related criminal complaints. In 2013 the IC3 received and processed 262,813 complaints, averaging about 22,000 complaints per month. The IC3 reports that 119,457 of these complaints involved a dollar loss, and puts total dollar losses at $782 million. The most common complaints received in 2013 included auto auction fraud involving the sale of automobiles, real estate scams and FBI impersonation email scams.
CYBER CRIME COMPLAINTS, 2009-2013 (1)
(1) Based on complaints submitted to the Internet Crime Complaint Center.
Source: Internet Crime Complaint Center.
TOP TEN STATES FOR CYBER CRIME, 2013 (1)
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(1) Based on complaints submitted to the Internet Crime Complaint Center via its website.
Source: Internet Crime Complaint Center.
© Copyright 2014. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.
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