Smartphones and social media emerge 'Hot cakes' for ID thieves

Mitch Lipka

NEW YORK, USA: Nearly 12 million Americans were victims of identity theft in 2011, an increase of 13 per cent over 2010, according to a report released on Wednesday by the research firm Javelin Strategy & Research.

The rise in the use of smartphones and social media by incautious consumers fueled the increase in identity fraud, and 2011 was a year of several big data breaches too, Javelin said.

With the rise in credit card monitoring and more sophisticated policing by credit card companies, identity thieves are increasingly targeting users of smartphones and social media, where consumers have a tendency to be less cautious, experts say.

"The message is not that people should let their guard down," Javelin founder and President Jim Van Dyke said. "The challenge that we have is that criminals often change faster than everyday consumers or businesses."

The number of people whose information was accessed in a data breach increased by 67 per cent in 2011, largely due to some very high-profile thefts, such as the attacks on Sony Corp's PlayStation network in April.

Someone whose personal information is taken in a data breach is 9.5 times more likely to become a victim of identity fraud, Javelin found.

One heartening finding was that dollar losses by consumers remained stable last year despite the increase in the number of victims. Credit card issuers' policies on fraudulent transactions -- a $50 limit on losses, which is often waived -- and quicker detection has limited out-of-pocket costs to consumers, said Van Dyke.

For the past nine years, Javelin has been analyzing data and survey information about identity fraud, usually defined as the opening of new accounts in the name of a victim.

Tips

Here are some tips from Javelin to avoid becoming an identity fraud victim and mitigating losses:

- Password protect your home and mobile devices. Avoid exposing personal information that can be used by someone else for identity verification.

- Be careful about the apps you download. Only download through a service that monitors the apps, such as iTunes.

- Share information carefully when you are on a public wifi network.

- Monitor your credit cards by checking their use online or reading the statements carefully. Quickly report to your credit card issuer if you see any suspicious transactions.

- Take data breach notifications seriously. If your data has been accessed, consider subscribing to a credit-monitoring service, which is often is offered for free for a year by the company that had been breached.