Experian has published the results of extensive research into the victims of identity fraud. The study reveals some surprising facts.
The results of this new research are published in the Experian Victims of Fraud Dossier. The study sought to highlight identity fraud trends by analysing the experiences of 4,000 victims who had been helped by Experians free Victims of Fraud service. This service is run by a dedicated team of people within Experians Consumer Help Service who provide expert advice and assistance that helps mend the damage caused by identity fraudsters.
More than half of all victims fall within the 30-50 age group and are almost equally male and female. Experian analysis shows that the likeliest victims include the wealthiest and the most successful homeowners, as well as those living in rented accommodation.
The groups at most risk of ID fraud include:
In most cases of identity fraud, although there is a cost to victims in terms of distress and time spent reclaiming their identity, most people do not suffer a direct financial loss as a result of a fraud being perpetrated in their name the financial loss is borne by the companies involved. Despite this, people often discover they have become a victim while making an important credit application, such as to buy a house or a car, and this can result in significant inconvenience, especially if the deal is delayed or falls through.
Hardest hit financial organisations in terms of volume are mail order companies more than 60 per cent of all fraudulent accounts identified during the 2005/6 financial year by the Experian Victims of Fraud team were mail order accounts. However, in terms of actual value, the biggest losers were credit and store card issuers, who suffered approximately 35 per cent of the Experian-identified fraud losses during that 12-month period.
In terms of the average cost per fraud case, hire purchase (HP) and personal loan accounts are worst affected, with an average loss of GBP10,200 per HP account and of GPB7,019 per loan account between April 2005 and March 2006. Telecommunications and mail order companies fare much better, with average losses per victim of GBP195 and GBP253 respectively over the same period.
Experians fraud prevention systems enable users to share data on fraudsters across different product types and industry sectors to help prevent fraud. The software automatically checks credit applications against previous applications, suspect information and Experians extensive fraud databases to highlight inconsistencies that may indicate suspicious activity.
This ensures that, for each new application, previously fraudulent, suspect, declined or multiple applications can be identified, along with any adverse or previous address information that an applicant may be deliberately hiding so that adverse information at the missing address would not be connected to that applicant. The use of an alias or false names, false employment details and impersonation can also be matched and highlighted through Experians systems.
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www.experiangroup.com
Taken from Information Security Bulletin.