Not every group is victimized, or protected, in the same way or at the same level. Javelin examines how incidents and precautions differ based on age, income and ethnicity.
By Rubina Johannes
Fraud doesn't look the same across all ethnicities, ages or incomes. And when broken down, the numbers reveal a stark contrast. For example, Hispanics and African-Americans aged 25-54 have a 56 percent higher chance of becoming victims of identity fraud compared to other consumers. And together, the fraud cases of these two ethnicities represent 35 percent, or $20 billion, of total annual identity fraud losses.
By contrast, even though households earning over $150,000 are 50 percent more likely to be victimized than the average household, their losses are among the lowest, at $4,376 per victim or six percent ($3.6 billion) of total annual losses. One reason for the lower numbers are measures taken to protect the assets of the highest earning households, whether done by consumers themselves, their surrogates, or the institutions that house their assets, that are effectively reducing fraud losses for this demographic by at least 31 percent compared to the average loss for all victims.
Excerpts from the May 2006 report, "The Demographics of ID Fraud," a companion to the "2006 Identity Fraud Survey Report" published by Javelin Strategy & Research in January-examine identity fraud and its characteristics relative to the demographics of its victims. The report provides financial institutions with a finer understanding of how their identity fraud prevention, detection and resolution processes can be modified to better serve their clients and reduce operating losses. Representative summary findings are excerpted below. Additional characteristics of identity fraud victims by income, age, ethnicity and geography; demographic characteristics of identity fraud cases; and the types of accounts that are targeted for fraud can be found in the full report....for more of the story from Bank Technology News