Part ONE: Interventions for Students who Have Been Victimized
9.4M online U.S. adults were victimized by identity theft in year ending April 2004 –Losses...
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Transcript of 9.4M online U.S. adults were victimized by identity theft in year ending April 2004 –Losses...
9.4M online U.S. adults were victimized by identity theft in year ending April 2004
– Losses amounted to $11.7 billion
Online theft is escalating
The solution revolution:
– ISPs will provide automated desktop protection tools
– Holistic back-end fraud detection systems will roll out to U.S. FIs
– By YE 2006, more than 2 million U.S. consumers will use strong two-factor authentication to access their accounts at leading Web sites (0.6 probability).
The Escalation of Online Fraud Will Lead to a Solution Revolution
Source: U.S. Attorney's Office, Philadelphia
Drug Lords Turn to Identity Theft andExploit Insiders
Identity Theft Crime Ring
Manufacturer
Concierge
Insider(e.g., teller)
Crack addicts
Crack addicts
More-technically sophisticated hackers
More account takeovers
More electronic data = bigger thefts
Checking account fraud increasing
– successful credit card fraud decreasing
New-account fraud attacks shifting to smaller lenders
– thieves opening small business accounts
More consumer awareness: Some consumers claim ID theft rather than pay debt
Troublesome Trends
Consumers typically discover Fraud on their own
Fraud Top ways consumers discovered fraud
New-account fraud
Denied credit, Saw charge on credit card statement
Check forgery Saw charge on check account
statement
Unauthorized DDA transfers
Saw charge on check account statement
Credit card purchases
Saw charge on credit card statement
Credit card cash advances
Card company called Saw charge on credit card statement
Strategic Planning Assumption
Credit issuers will misclassify more than 60 percent of identity theft as credit loss in 2006 (0.6 probability).
What Worried Consumers Want From Service Providers for Added Security
Not at allNot at all Desirable Extremely Desirable Extremely1 55
4.5
Ask me questions online that onlyI can answer when logging in
Authenticate themselves to me; for example, with shared
secret message
4.2
4.0
Use separate device, such as cell phone or card for online account access
3.6Give me program to download that prevents hacker from intercepting
2.6
Base: 5,000 online U.S. consumers; those who are very worried about security (April 2004)
What would you like your online service provider to do to improve the security of your information?
Make service provider legally responsible for strict
security measures
Strategic Planning Assumption
If phishing antidotes are not implemented, consumer trust will erode and annual U.S. e-commerce growth will slow to 10 percent or less by 2007 (0.6 probability).