According to a report released by research firm IBISWorld, the industry has remained relatively resilient in front of the economic downturn, with revenue falling only slightly in 2009 despite significant drops in consumer and business income. Since then, the slowly recovering economy has helped the industry grow due to increased demand from consumers and businesses.
The same source points out that the increasing demand for identity protection has mostly been the result of the proliferation of the internet into almost all financial activities. Most point-of-sale systems have immediately accepted credit or debit cards for payment, which has also turned them into an easy target for identity fraud.
In addition, research indicates that the rise of internet banking has made it easy for a persons entire finances to come under threat as the result of compromised passwords. Furthermore, the use of mobile phones in both financial account management and, increasingly, financial transactions has created another target for identity thieves. Therefore, the demand for identity protection has steadily increased over the past five years.
The report on Identity Theft Protection Services reveals that the industry has a low level of market share concentration. In 2012, the four largest firms in the industry have accounted for less than 20 percent of industry revenue. Due to the relatively low barriers to entry in this industry, new entrants are able to offer similar products to major players. However, as more firms enter the industry, firms are becoming less able to distinguish themselves from one another.
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