1.4% of online revenues lost to fraud in 2007

The share of online revenue lost to fraud in 2007 held steady with 2006 at 1.4%, but as e-commerce grows, the total dollar loss from online payment fraud is growing at the rate of about 20% a year and is estimated at $3.6 bln in 2007, up from $3.1 bln in 2006, according to CyberSource.

Identity theft down 12% in 2007

Overall identity fraud is declining in the United States: down by an estimated 12% over 2006, which represents a total fraud reduction of $6 bln. Fraudsters are turning to lower-tech methods by utilizing telephone theft more than ever before, Javelin Research says.

Identity fraud by state

Access through mail and telephone transactions grew from 3% of ID theft in 2006 to 40% in 2007. Fraud risk is lowest in the Northeast while residents in California and other states are at the highest risk. Young adults who fall victim to fraud are most likely to purchase ID fraud insurance and sign up for fraud alerts. Older adults who fall victim often react by no longer sending bill payments and checks through unsecured mailboxes.

Identity theft rates in the US

57% of Americans still very concerned with credit card safety online

61% of adult Americans said they were very or extremely concerned about the privacy of personal information when buying online, an increase from 47% in 2006, University of Southern California’s Center for the Digital Future says. Concerns about credit card security have largely stabilized, with 57% very or extremely concerned in 2007. It was 53% in 2006. As of 2007, 67% of adult Internet users shop online, compared with just half a year earlier. Most spend $100 or less a month, and two-thirds of online shoppers have reduced buying at brick-and-mortar stores. Online parents are more likely than ever to withhold Internet use as punishment – 62% in 2007, compared with 47% a year earlier and 32% in 2000.

66% of Americans believe their identity can be stolen while shopping online

57% of U.S. adults are concerned about being a victim of identity theft during the holiday season, and 66% believe they are more at risk when making purchases online, according to National Association of Insurance Commissioners. 32% of consumers were victims or knew someone who had been a victim of identity theft in the past five years, according to the survey of 500 adults, age 18 and older. Of those consumers, 46% said the identity theft exceeded $1,000.

$3.2 bln lost to phishing in 2007

Phishing attacks in the United States soared in 2007 as $3.2 bln was lost to these attacks, according to Gartner. 3.6 mln adults lost money in phishing attacks in the 12 months ending in August 2007, as compared with the 2.3 mln who did so the year before. Of consumers who received phishing e-mails in 2007, 3.3% say they lost money because of the attack, compared with 2.3% who lost money in 2006, and 2.9% who did so in 2005. The average dollar loss per incident declined to $886 from $1,244 lost on average in 2006 (with a median loss of $200 in 2007), but because there were more victims, $3.2 bln was lost to phishing in 2007, according to surveyed consumers. Some 1.6 mln adults recovered about 64% of their losses in 2007, up from the 54% that 1.5 mln adults recovered in 2006.

8.3 mln Americans had their identities stolen

4% of American adults were victims of identity theft in 2005, but half of them did not incur any out-of-pocket expenses, FTC said. Identity information was stolen from 8.3 mln US adults and most commonly used to access or open accounts for credit cards, bank checking, telephone service, e-mail, and medical insurance.

63% of malware is distributed through US sites

US-based Web surfers are more at risk to malware attacks and online identity theft schemes than citizens from other countries, with more than 63% of malware distributed on US-based Web sites. In addition more than 2 mln URLs world-wide distributed malicious downloads to site visitors. Cyveillance also determined that despite the rate of traditional phishing attacks leveling off, there was a 20% increase in the aggregate quantity of brands targeted, indicating that phishers continue to change targets. China and the United States host 60% of sites where malware binaries are stored, while 63% of the sites being used to attract and distribute malware are hosted in the United States. The United States also hosts over 50% of the world?s malware drop sites, which collect information from infected computers that use keyloggers, screen scrapers and other approaches to passively harvest sensitive personal information.