Although Javelin Strategy & Research reports that more than a quarter of consumers compromised by a data breach are later victimized by identity fraud, card issuers and consumers are following proactive strategies to eliminate fraud risk following a breach, according to Javelin analyst Al Pascual.
In one-third of cases noted by Javelin in its latest annual identity fraud report, consumers said they were alerted to fraud by their banking institutions or card issuers, allowing them to halt fraudulent transactions sooner. “The correlation of being notified of a data breach and actually suffering a certain type of fraud is very, very strong,” Pascual says.
“If you receive notification that your credit card number has been breached, the incidence rate for that particular population is 28 percent, when we talk about existing credit card fraud. For all consumers, it’s only 3.1 percent.” That means consumers who have credit card information exposed in a breach have a greater than one in four chance of becoming victims of existing card fraud. The Javelin study also found that 15 percent of all fraud victims changed their behaviors and shunned smaller online retailers following a breach.Back To Blog