The Bankwatch

Tracking the consumer evolution of financial services

Friendly fraud is most prevalent

Javelin are coming out with the results of an identity theft survey, and the posted early results, that surprised me.  I would have picked 2 & 3 to be first and second.

highest average  … identity thefts committed by

  1. friends & neighbors
  2. family members
  3. distant third for employees at FI’s

Source: Javelin


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Written by Colin Henderson

January 9, 2007 at 21:57

Posted in Security

4 Responses

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  1. Thanks for highlighting the new results. Always good insights out of Javelin.

    But, I think your headline is misleading…the Javelin data says that the AVERAGE OUT-OF-POCKET LOSS amount is higher for so-called friendly fraud. Javelin is not saying that friendly fruad is necessarily more prevelant that the other sources. In fact, Javelin points out that part of the reason for the higher average loss is that victims do not prosecute their family members.

    Also, an important footnote to the Javelin data on fraud sources: The results only include the data points where the consumer KNOWS WHO COMMITTED THE FRAUD. And since it’s more likely that a consumer will know when a family member commits the crime vs. a faceless employee or computer hacker, the results are skewed to an unknow extent.

    Jim Bruene

    January 10, 2007 at 16:32

  2. i read that a few times. I concluded as near as I could that loss is highest from friendly fraud, with the qualification ‘victims could identify … ‘). I don’t actually know what that means, because the third cause, FI employee, would never be ‘known’ to a victim?

    Their post says:
    “we are finding that the highest average consumer out-of-pocket costs (among victims who could identify the fraud operator) were for those identity thefts committed by” …

    Bottom line: I agree the wording is poor and not entirely clear, but based on the post, I will stick with the headline 🙂


    January 11, 2007 at 23:17

  3. Identy theft really scares me… Even if you can recover your losses, I just think of the countless hours, days, months of work I would have to put forth getting it back…

    BTW I am moving my links page direct to my homepage. About a week ago I added this site to my links and I was wondering if you would do the same for me and add me to your blogroll.

    Garry Conn

    January 12, 2007 at 00:21

  4. Happy to reciprocate Gary. Generally the links I have are banking or at least financial related, so I do periodic reviews on that just to keep the theme, and not let the blogroll not get out of control.



    January 12, 2007 at 11:15

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