Contemporary research on the financial impact of data breach events has focused on costs to businesses and institutions, but largely ignored their effect on the consumers whose personally identifiable information (PII) is compromised. Javelin Strategy & Research (@JavelinStrategy) released the firm’s first ever “2013 Data Breach Fraud Impact Report: Mitigating a Rapidly Emerging Driver of Fraud,” which demonstrates the real connection between data breach and consumer fraud. Data breach victimization has been increasingly correlated with fraud over the past three years with over 50% of fraud victims in 2012 were also data breach victims. The Open Security Foundation reports an all-time high of 1,611 breaches in 2012, a 48% increase over 2011.

1. DATA BREACHES LEAD TODATA BREACHES LEAD TO
IDENTITY FRAUDIDENTITY FRAUD
JUST THE FACTS
of identity fraud
victims were also
victims of data breach
of data breach
victims enrolled in
free identity
protection services
yet only
RECOMMENDATIONS FOR:
average consumer
out of pocket costs
in total fraud
Regularly audits
systems that handle PII
and user acess rights
Establish data
migration security
checklist
Who is JavelinWho is Javelin
Javelin Strategy & Research, a division of Greenwich Associates, provides strategic insights into customer transactions, increasing
sustainable profits for financial institutions, government, payments companies, merchants and other technology providers.
Learn More:Learn More: 2013 DATA BREACH FRAUD IMPACT REPORT: Mitigating a Rapidly Emerging Driver of Fraud
https://www.javelinstrategy.com/brochure/287
$
data breaches
in 2012*
data breaches
in an average
month
Equals toEquals to
IMPACT OF SOUTH CAROLINA DATA BREACH FOR:
Consumers Financial Institution and Merchants
Consumers Financial Institutions
Regularly audits
Data Custodians
Encrypt all sensitive
consumer data to
prevent misuse
Enroll in free
identity protection
services if offered
Discontinue SSN
authentication to prevent
account takeovers
Sign up for account
alerts to be notified
of potential fraud
!
hours to resolve
fraud per consumer
SOCIAL SECURITY
*According to the Open Security Foundation