Survey Finds A Decrease In ID Theft Crimes for 2010

According to Javelin Strategy & Research, in its eighth annual survey of consumers, the number of identity theft crimes fell from an estimated 11 million in 2009 to 8.1 million in 2010. The decline reverses a two-year trend of increased ID theft incidents. And it means Americans’ odds of being hit by the crime fell sharply. In 2009, 4.8% of U.S. adults were victims, compared to 3.5% in 2010. Total annual reported fraud fell from $56 billion to $37 billion, the lowest amount in the survey’s eight years, the firm said.

But the data from the survey isn’t all good. Results also showed that the average out-of-pocket loss suffered by identity theft victims jumped from $387 to $631 per incident. Consumers said they also spent an average of 59 hours recovering from a bout of “new account” ID theft in 2010, up from 41 hours the previous year. The survey also suggests Facebook and Twitter users should pay close attention to their credit reports. Consumers who have used social media tools for at least five years are twice as likely to be hit with ID theft as others, the survey found.

The steepest drop in Javelin’s study comes from simple credit card fraud, which fell from 65% of total cases in 2009 to 57% in 2010, suggesting some bank fraud controls are successful. But debit card fraud, which can be more troubling for consumers because of a lower level of guaranteed protection, jumped from 26% of the total to 36%. ◆