Why is it important to address identity fraud today? Look at the numbers.

Last year, 8.4 million Americans became victims of identity fraud, with total fraud amounting to $50 billion. The average victim paid $587 out-of-pocket for fraud on an existing account. If the thief opened a new account in the victim's name, the average victim paid $792. On average, victims spent 25 hours resolving their fraud case.

Dream credit card - security elements for protection against identity fraud

Javelin's research has determined the optimal combination of available, effective tools and policies that best protect consumers. Below are the ideal security elements of a dream credit card and research findings in support of them:

For Fraud Prevention

• Provides customers the ability to restrict or allow certain types of transactions (e.g. cash advances, foreign transactions, card-not-present transactions).
• Uses identifiers other than social security numbers for identity verification.
• Truncates all customer-sensitive data while interacting with customers.
• Encourages customers to protect their home computers with anti-virus software by partnering with security software vendors (e.g. Bank of America's partnership with Symantec).
• Offers photo of account holder on card.

For Fraud Detection

• Provides mobile device or email alerts of high-risk changes to accounts (e.g. replacement card sent out, PIN or password reset, change of physical address or email address), initiation of higher-risk transactions (e.g. card not present, foreign transactions, activity on dormant account), and status of accounts (payment past due). Over two-thirds of account takeover cases are due to a fraudulent change of address. Alerts for changes to personal information are one of the top desired alerts by consumers.
• Notifies customers of new account set-ups. New accounts fraud is traditionally the most difficult for consumers to detect. Credit cards continue to be the most abused category of fraudulent new accounts.
• Facilitates consumer ordering of credit reports and credit monitoring services. New fraudulent accounts can be virtually invisible to a consumer without a credit monitoring service.

For Fraud Resolution

• Institutes a comprehensive, up-to-date data breach resolution plan.
• Provides an identity fraud assistance team to help customers affected by fraud.
• Offers zero liability for fraud.
• Offers next-day card replacement in addition to 24/7 account suspension capabilities.
• Offers free identity fraud insurance.