Incorrect beliefs about the way consumer data breaches have an impact on identity fraud may lead to ineffective actions taken by consumers, according to a recent report published by Javelin Strategy & Research. The misunderstandings may also lead to flawed protective measures taken by corporations as well as state and local governments.
According to the report, public notifications of breaches reached into the tens of millions last year, but identity fraud only increased four percent. The large number of data breaches and the publicity they have received has created the incorrect assumption that fraud resulting from data breaches is prevalent. The Javelin report indicates that the known leading causes of ID fraud are lost or stolen wallets, checkbooks and credit cards, which account for 30 percent of ID fraud. Other known leading causes include information stolen by friends, acquaintances, relatives or corrupt employees.