News

Study: 61 percent of data theft victims subsequently experience fraud

July 1, 2014

The great majority of fraud victims said current data protection requirements are "insufficient" and that government should be doing more.

In a new survey of identity fraud victims, 61 percent of respondents reported that breached information was used to commit fraud against them. Nearly half of these (49 percent) said they didn't know where their data was compromised.

The National Consumers League study, conducted in partnership with Javelin Strategy & Research, was conducted as part of NCL's #DataInsecurity project, which seeks to raise awareness and push for government action on consumer data security.

Participants in the study reported a loss of trust in businesses where their data was compromised; 59 percent of those whose data was breached at a retailer expressed “significantly decreased” trust in retailers who failed to protect their information.

Just 28 percent of victims surveyed said the government’s requirements for protecting healthcare and financial data were “sufficient.”

“In this polarized political climate, it’s rare for Americans to express such agreement on any issue,” said Al Pascual, Javelin senior analyst of fraud and security. “But when it comes to the security of their personally identifiable information, the respondents said with one voice that the government must do more.”

The NCL/Javelin study includes surveys of fraud victims from Los Angeles, Chicago, Minneapolis and South Florida, along with additional Javelin research on national fraud trends.