NEW YORK–Three-in-five Americans believe it is likely that identity theft will cause them a financial loss in the next year, according to new research conducted by The Harris Poll on behalf of the American Institute of CPAs (AICPA).
Twenty percent feel it is “extremely likely” that identity theft will cause them a financial loss in the next year.
But as concerned as Americans are, most also continue to leave themselves vulnerable and not take steps to protect themselves.
The survey found 56% said they have increased their overall online shopping since the start of the pandemic, with 31% saying it has increased significantly. The survey further found that since the start of the pandemic 37% of American online shoppers have stored logins, passwords, or credit/debit card information on websites or apps, while only 28% have set up alerts on their credit or debit card for when a purchase is made without their card being present.
In addition, of their online shopping accounts, only 49% of Americans update their passwords more than once a year, 26% of Americans only update their online passwords when prompted by the website, and 9% never update their passwords.
‘Quite Costly’
“These stats may be why in the past year one in five Americans (19%) have suffered identity theft or attempted identity theft. These incidents can be quite costly, as Americans lost a total of $16.9 billion in 2019 to identity fraud, according to Javelin Strategy & Research,” the AICPA said in releasing its findings.
The survey also found less than half of Americans (45%) have checked their credit or debit card statements to ensure that the charges match their actual purchases since the pandemic began. Further, 39% admit they use the same username and/or password across multiple websites.
“Law enforcement has reported a big spike in online scams during the COVID-19 pandemic. Taking time to review your bank statements and credit card activity for unauthorized transactions, while also putting safeguards in place like complex passwords, credit card usage alerts and two-factor authentication, can go a long way to mitigate the threat of ID theft,” said Gregory J. Anton, chairman of the AICPA’s National CPA Financial Literacy Commission. “Safe steps also include exercising caution when reading emails and clicking on links, learning about the latest scams, and being mindful of your online presence.”
Income Affects Familiarity With Credit Reports
While the survey shows 67% of Americans have at least looked at their credit report, AICPA noted that leaves 33% who have never done.
“And those with a household income of less than $50K were found to be twice as likely to never have looked at their credit report than those with a household income of $100K+ (45% vs. 21%),” AICPA said.
The AICPA has compiled a checklist for consumers to use to better protect themselves at 360FinancialLiteracy.org/SafeID.