Security News > 2022 > April > Traditional identity fraud losses soar, totalling $52 billion in 2021

A study shows that traditional identity fraud losses, caused by criminals illegally using victims' information to steal money, exploded in 2021 to $24 billion - an alarming 79% increase over 2020.

Further, the number of adults in the United States impacted by traditional identity fraud grew more than 50%, reaching more than 15 million victims, a Javelin identity fraud study reveals.

The study also found that losses from identity fraud scams, in which a fraud operator influences a victim to divulge or expose their personal information, added another $28 billion in impact victimizing an additional 27 million U.S. adults.

Taken together, identity fraud losses totaled $52 billion and affected 42 million U.S. adults.

Fraud affecting existing credit cards rose 69%, while fraud on existing non-card accounts, including checking, savings, insurance or utilities, jumped 73%. The individual impact of identity fraud grew more severe in 2021, as the average per-victim loss from traditional identity fraud rose by $201 to $1,551, while identity fraud scams claimed $1,029 per victim.

"The 2021 losses are staggering and underscore how damaging identity fraud has become," said Kathy Stokes, director of Fraud Prevention Programs at AARP. "Institutions must show empathy for the financial and emotional toll that identity fraud takes on its victims, who expect-and deserve-to be treated with respect, regardless of their situation."

News URL

https://www.helpnetsecurity.com/2022/04/05/traditional-identity-fraud-losses/