MAIDSTONE, Kent, U.K.–A recent analysis of Google Trends search data shows Americans have a growing fascination with their credit scores, but an overemphasis
on such scores at the expense of credit reports could make for a better environment for identity thieves, according to a new analysis.
The analysis, conducted and released by Comparitech, collected data from Google Trends, Bing, the FTC, and other sources suggests consumers are checking their credit scores more often than ever, but not their credit reports, which offer details about activity.
According to the Comparitech analysis, between 2004 and 2018 consumer search interest in “credit score” increased approximately 230%, while during the same period consumer search interest in “credit report” decreased nearly 70%.
11,000% Increase
Since 2003, the number of websites offering information on “credit scores” increased more than 11,000%, overtaking sites offering information on “credit reports.” These changes occurred immediately following the passage of the Fair and Accurate Credit Transactions Act (FACTA) of 2003 that required consumers receive free, detailed credit reports annually, the company noted.
“Consumers’ declining interest in their more detailed credit reports is a subtle but troubling trend,” wrote Sam Cook of the Comparitech analysis. “It means consumers are only getting a snapshot of the information factored into their credit scores, and could easily be missing not just inaccuracies across their three Credit Reporting Agency files, but also potentially fraudulent activity that’s hard to spot in a score.”
The Comparitech reported further suggested the negative trend associated with credit report search interest is of particular concern when combined with additional data from the Federal Trade Commission (FTC). According to historical data within the FTC’s Consumer Sentinel Reports, between 2006 and 2017, consumer reports of identity theft to the FTC increased 50%, consumer reports to the FTC related to credit bureaus increased 401%, and consumer reports to the FTC related to credit card fraud increased 633%.
‘A Growing Scenario’
“Although some good news emerges in the FTC’s Consumer Sentinel reports over the years (including a 17% drop since 2006 in reported financial losses from fraud), consumer behavior — as indicated by the FTC’s data, as well as Google Trends search data and other consumer surveys — reveals a growing scenario that could easily lead to larger fraud losses in the future as consumers are likely to respond more slowly to fraud,” the analysis stated. “Notably, consumers are also less likely to check their credit reports when their credit scores are good or when their credit card debt is high. Having a good credit score or carrying a large amount of revolving debt appears to make consumers more complacent, which is beneficial for identity thieves.”
The full report can be found here.