Identity fraud levels have increased in 2009, a recent study has revealed. According to the 2010 Identity Fraud Survey Report published by Javelin, one of the main drivers behind the increase was new accounts fraud, which showed longer periods of misuse and detection and higher losses associated with it than any other type of fraud.

According to the survey, total annual fraud amount in 2009 amounted to USD 54 billion, a 12.5 percent increase over 2008, when it was worth USD 48 billion. The increase in total fraud amount was driven by the growth in the total annual fraud amount for new accounts fraud, which rose 17 percent from USD 18 billion to USD 21 billion. The total fraud increase was also aided by the total annual fraud amount for existing non‐card fraud, which rose 22 percent from USD 9 billion to USD 11 billion. There were also increases in the fraud incidence rate, which rose from 4.3 percent to 4.8 percent in one year.

Meanwhile, Javelin indicates that consumer costs – represented by the average amounts paid by victims were found to be at an all-time low. Thus, mean consumer costs dropped sharply in 2009 to USD 373 from USD 498 in 2008, a 25 percent decline, due to the fact that the industry is absorbing more fraud loss to limit the impact on consumers.

In 2009, 11.1 million US adults became victims of identity fraud, a 12 percent increase over 2008, and a 37 percent rise since 2007. The increased incidence rate of 4.8 percent has resulted in one‐year fraud amounts totalling USD 54 billion, a rise of USD 6 billion over 2008.