Press Release: Online Identity Fraud on the Rise, Costing Consumers and FinTech Organizations Billions a Year

As online identity fraud becomes more sophisticated, fintech and govtech organizations are using federated identity verification to safeguard data

MCLEAN, VA – May 2, 2017 –  Federally accredited digital identity provider ID.me today is releasing the results of an in-depth study investigating the impact of identity fraud online.

A commissioned study conducted by Forrester Consulting on behalf of ID.me reported that identity fraud victims increased to $15.4 million in 2016, up from $11.6 million in 2011 with losses estimated at $16 billion last year*. As the potential costs of identity theft and fraud skyrocket, 90% of surveyed consumers feel concerned about the safety of their personal identifying information (PII). More than half of consumers say they don’t feel in full control of their personal data.

The study also reported  that data breaches rattle the confidence and drain the budgets of large organizations, costing U.S. businesses an estimated $50 billion a year, according to CSID.

“The results of this study underscore why federated identity verification (IDV) is so vital to businesses and government agencies,” said Blake Hall, CEO and Co-Founder of ID.me. “Identity fraud not only costs consumers and businesses money, but also erodes consumer confidence in the institutions that serve them. When consumers can’t open a bank account or access government services online without feeling anxiety, we’ve got a problem.”

Federated IDV is an attractive anti-fraud measure to both consumers and businesses. In addition to restoring a sense of control and confidence in their data, 41% of organization say a certified single sign-on would provide a better customer experience. Eighty-eight percent of organizations also say they plan to adopt federated IDV with SSO over the next three years.

Download the full study, Bridging The Gap Between Customer Experience And Fraud Prevention, to learn more about the far-reaching impacts of identity fraud and federated IDV.

About ID.me
Veteran-founded and led, ID.me is a digital identity network that allows consumers to prove who they are online while controlling how their information is shared. For participating organizations, ID.me acts as a trusted intermediary, capable of verifying consumer identity and group affiliations in real-time. This allows organizations to ensure a consistent user experience across offline and online channels while reducing costs and security risks associated with manual verification. ID.me’s Identity Gateway supports over 200 relying parties including Veterans Affairs, USAA, NASA, Treasury and the State of Maine.

In March 2017, ID.me closed $19 million in Series B funding. The ID.me Identity Gateway also won an Innovator Award for Most Disruptive.

*Source: Al Pascual, Kyle Marchini, and Sarah Miller, “2017 Identity Fraud: Securing the Connected Life,” Javelin Strategy & Research, February 1, 2017 (https://www.javelinstrategy.com/coverage-area/2017-identity-fraud).

SHARE
Cameron D'Ambrosi is One World Identity's Director of News and Media, and host of the State of Identity podcast. Previously a Manager with Deloitte, Cameron has over 9 years of combined regulatory, consulting, and AML experience. An avid technologist and gourmand, Cameron lives in New York City with his girlfriend Lizzy. PGP Fingerprint: 0C49 0F9D 179E 263F 9FFE 5080 2198 F5B7 D4E5 391A