Identity theft losses drop, still top $49b
NEW YORK -- Americans lost about $49.3 billion in 2006 to criminals who stole their identities, an 11.5 percent decline that may reflect increased vigilance among consumers and businesses, a study released yesterday shows.
Losses declined from a revised $55.7 billion in 2005, according to the third annual study by Javelin Strategy & Research. They had increased in each of the prior two years.
The average identity theft fraud fell 9 percent to $5,720 from $6,278, while the median held steady at $750.
"Businesses are doing a better job screening, and consumers are doing better at locking up information and monitoring their accounts," said James Van Dyke, founder and president of Pleasanton, Calif. -based Javelin .
According to the study, 8.4 million adult Americans, or one in 27, learned last year that criminals committed fraud with personal data such as credit card or Social Security numbers. That's down from 8.9 million in 2005 and 10.1 million in 2003.
Adults under 25, African-Americans, and people who make more than $150,000 were among the groups most likely to suffer fraud, the study said. The youngest adults were also among the least likely to take steps to stop it, the study said.
Consumers on average spent $535 to clear up fraud, though more than half spent nothing, the study said. Many businesses excuse customers from liability for certain frauds.
Results were based on a phone survey last fall of 5,006 people, including 469 who said they were fraud victims.
