Young adults slow to spot ID theft, survey shows
Despite their Web savvy, young adults are slow to spot
identity theft online, according to the Javelin Strategy & Research
identity fraud survey released Wednesday.
In the annual Identity Fraud Survey Report, now in its
seventh year, Javelin found that identity theft involving young adults
typically go undetected for longer than fraud targeting older consumers. The survey
showed that compared to other age groups, so-called millennials -- consumers
age 18 to 24 -- take nearly twice as many days to detect fraud, leaving young
adults fraud victims for longer periods.
Identity theft experts say the data highlights an unusual
paradox about young adults. "It's sort of counterintuitive. They are
online all the time. What they're not online doing is monitoring their credit
cards and bank accounts," says Anne Wallace, president of the nonprofit Identity
Theft Assistance Corporation (ITAC), which co-sponsored the survey. "That seems to be part of why
they're not discovering [ID theft] as fast as other age groups."
Wallace says that although millennials don't tend to
victimized by fraudsters as often as other age groups, they still have ample
reason to take the survey's findings to heart.
Invincible? No, vulnerable
While they may be wise about the World Wide Web, experts say that young people still have a lot to learn about the world's wicked ways. That lack of experience keeps them
from taking the precautions necessary to frustrate fraudsters.
"I'd speculate that it's a feeling of not being
vulnerable -- that they're still relatively innocent about the risks" of
identity theft, says Wallace. She adds that millennials may believe that since
they don't have a lot of money in the bank they aren't likely to be victimized.
"But if somebody withdraws $100 from your savings account, that can have a
devastating impact," she says.
|MILLENNIALS SLOW TO FIND ID THEFT
|Those 18 to 24 years old, despite their Web savvy, are slower to discover ID theft -- and pay for it, a Javelin Strategy & Research study finds.
||Millenial ID theft victims
||All ID theft victims
|Time to detect fraud
|Cost of fraud
That same group of young people is also most likely to be
online. Akamai's State
of the Internet report for the third quarter of 2009 shows that people
between the ages of 18 and 29 use the Internet the most, with 93 percent of
that age group going online. That makes it a group that is comfortable on the
Internet -- maybe too comfortable. "Younger people have a bigger
comfort zone with regards to personal information, and that leads them to
sometimes being unwise about the types of info on their Facebook pages," Wallace
ID theft tips for millennials
Rather than waiting the years it takes to develop a more
world-wise attitude, millennials can take action to better guard their data:
Adjust your privacy
settings. Facebook and other online sites offer privacy settings to
restrict who gets to see personal information. Wallace says that young people
need to familiarize themselves with these settings and use them to filter their
data. She recommends that people ask themselves a key question: "Is
this information I want everybody to know -- or only a much smaller group of
Guard your data. Because
young people often live in dorms or
shared housing, they have to be vigilant about keeping their data (including
Social Security and PIN
numbers) out of the hands of less-than-trustworthy housemates
or acquaintances. "It may seem like an obvious point, but don't give
your roommate your PIN number," Wallace says.
Visit your bank's Web
site. With banks and credit card issuers offering free account access
online, young people have no reason not to surf over to check on their
you monitor electronically, you will find the theft faster," says Wallace.
"Faster detection translates directly into lower costs and less
Protect your gadgets.
In many cases, fraudsters are pretty Web-savvy themselves. And while young people may not fall
victim to phishing and other more basic online scams, they still need to guard their computers and other gadgets.
Installing firewalls and software to protect a computer against spyware and
viruses can also help to safeguard personal information.
Experts say it's a constant battle to keep data safe from
increasingly sophisticated networks of identity thieves, but it's one that young
people need to participate in. "We have to acknowledge and adjust our
perception of reality to accommodate that there are people looking to steal
from you," Wallace says.
Javelin also found:
The number of U.S. identity fraud victims rose
12 percent to 11.1 million adults last year, the highest level since the survey
began in 2003.
The average fraud resolution time dropped
30 percent to 21 hours.
Nearly half of fraud victims now
file police reports, resulting in double the reported arrests, triple the
prosecutions and double the percentage of convictions in 2009.
Javelin's poll was conducted via random digit dialing to 5,000 Americans, including 703 identity theft victims. Findings for the identity theft victims are considered accurate at a 95 percent confidence level, with a 3.7 percent margin of error.
See related: Credit to their generations: The Millennials, 10 ways to protect yourself from data breaches, Social networking: Your key to easy credit?
Published: February 10, 2010
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
Three most recent Research, statistics stories:
- Card debt falls in February – Credit card users cut their balances sharply in February 2014, even as personal income rose, says the Federal Reserve's monthly consumer credit report ...
- What an interest rate increase will cost cardholders – Interest rates, at historic lows since 2008, are expected to start rising as soon as spring 2015, and a single 1 percentage point increase will cost U.S. credit card holders an estimated $7.6 billion a year ...
- Card debt falls in January – Card balances reversed direction and fell in January, as consumers got hit by harsh weather and expiring jobless benefits ...
Did you like this story? Then sign up for CreditCards.com’s weekly e-newsletter for the latest news, advice, articles and tips. It's FREE. Once a week you will receive the top credit card industry news in your inbox. Sign up now!