New Research Confirms Identity Fraud Is On Decline

Overall Fraud Down 12%, Criminals are Trapping Victims Over the
Phone

Critical New Regional Findings Illustrates How Fraud Varies
State-to-State
SAN FRANCISCO--(Business Wire)--
The 2008 Identity Fraud Survey Report - released today by Javelin
Strategy & Research (www.javelinstrategy.com) - confirms that identity
fraud is declining in most parts of the United States, and that
fraudsters are turning to unexpected channels to commit fraud. This
year's report reinforces a three-year trend that criminals mostly
obtain the majority of information from stolen personal belongings,
and through telephone calls, rather than online. For the first time, a
key new finding identifies California and Illinois among five states
whose residents are most at risk of identity fraud.

Now in its fourth consecutive year, the comprehensive survey is
independently produced by Javelin Strategy & Research. It is the
nation's longest-running study of identity fraud, with more than
19,000 respondents participating during the past four years. Identity
fraud is defined as the unauthorized use of another person's personal
information to achieve illicit financial gain. In October 2007, more
than 5,000 telephone interviews with consumers identified important
findings about the reduction of fraud while at the same time
highlighting new areas of concern for Americans. Funding for the
survey is provided by CheckFree, now part of Fiserv, Inc., Visa Inc.
and Wells Fargo & Company, companies committed to educating consumers
about how they can reduce the risk of identity fraud through
preventive measures.

"Javelin's 2008 Report confirmed what we believe to be true: that
while fraud is declining, it is still a concern for the American
public," said James Van Dyke, president and founder of Javelin
Strategy & Research. "The good news is the leadership role many
businesses are taking in educating consumers about ID fraud risk
factors is paying off. Still, fraudsters are getting creative and
leveraging new techniques to commit fraud, so Americans need to be as
diligent as ever in protecting their personal information."

Key Survey Findings

-- Overall identity fraud is declining in the United States -
Down by an estimated 12 percent over 2006, which represents a
total fraud reduction of $6 billion.

-- Traditional methods still pose the greatest risk - Fraudsters
are turning to lower-tech methods by utilizing telephone theft
more than ever before. Access through mail and telephone
transactions grew from 3 percent of ID theft in 2006 to 40
percent in 2007.

-- States are not affected equally - Fraud risk is lowest in the
Northeast while residents in California and other states are
at the highest risk.

-- Fraud response varies by age - Young adults who fall victim to
fraud are most likely to purchase ID fraud insurance and sign
up for fraud alerts. Older adults who fall victim often react
by no longer sending bill payments and checks through
unsecured mailboxes.

"The 2008 Javelin Report clearly identifies how significantly
identity fraud impacts consumers," said Steve Cole, president and CEO,
Council of Better Business Bureaus. "For every headline-grabbing data
breach there are many businesses setting good examples, but businesses
must continue to fight the issue with more consumer education and
best-practices to safeguard customer data."

Continued Decline of ID Fraud, But Per Consumer Cost Up

Approximately 300,000 fewer adults in the United States fell
victim to identity fraud in 2007 than in 2006. This continues the
year-over-year decrease since data was first collected by Javelin in
2004 when 4.25 percent of the overall adult population in the United
States was victimized. In 2007, 3.58 percent of the country's adults
were victims of identity fraud.

The annual cost of identity fraud in this year's report dropped by
nearly 12 percent over the previous year, from $51 billion to $45
billion. These figures represent the total amount that criminals were
able to obtain illegally, before detection.

Factors that contributed to this decline include greater consumer
vigilance and awareness, improvements in systems and practices by
companies that manage personal information, the increased frequency of
viewing personal account information, and consumers more frequently
updating spyware and anti-virus software. As businesses and consumers
work together to protect sensitive data by responsibly adopting online
financial services, such as online banking and bill paying, Javelin
expects the fraud reduction trend to continue, although at a slower
pace than in the past.

A troubling trend was identified in 2007. Over the past three
years, overall fraud declined, while the cost per consumer rose. This
cost is defined by the total out-of-pocket expense consumers incur
when falling victim to ID fraud, not those costs borne by businesses.
The cost per consumer in 2007 averaged $691, an increase of 25
percent, over the $554 recorded in 2006.

Criminal Activity in the Phone Channel

The most significant new avenue for theft of information in 2007
was the ubiquitous telephone channel, which saw a sharp rise in
incidents. Access through mail and telephone transactions rose from 3
percent of theft in 2006 to 40 percent in 2007. The dominant method
used by fraudsters in this channel was vishing, a technique in which
criminals use telecommunications, voice over Internet protocol (VoIP)
and other technologies to obtain information from consumers. As
consumers shift more financial transactions to secure online arenas,
fraudsters have become more creative in utilizing traditional
telephones, both land lines and wireless, to access information.
Unsuspecting consumers receive phone calls from parties claiming to
represent non-profit organizations, billing institutions or other
financial institutions. Far too many of these consumers provide the
callers with personal financial information such as Social Security
numbers, bank account numbers and credit card numbers, which are then
used by criminals for fraudulent activity.

This year's survey also turned up another compelling
telecommunications trend. Wireless phone accounts are the most
frequent types of new accounts opened fraudulently by criminals
utilizing other persons' data. Criminal wireless account openings
increased from 19 percent to 32 percent of new account fraud last
year, exceeding fraudulent new credit cards, loans, checking or
savings accounts.

Geography Makes a Difference

For the first time, Javelin reported regional fraud incidence rate
statistics. On average, New England and the Plains States reported the
fewest incidents of fraud per capita. But five states were well above
the national average for fraud when compared on a percentage basis to
other states across the country. Respondents in California, Illinois,
Idaho, West Virginia and Delaware reported the highest incidence of ID
fraud. Generally, states with dense metropolitan areas such as
California are more likely to have higher fraud rates, due to higher
income levels and commerce activity.

Victims React More Effectively to Fraud

The 2008 Report uncovered important behavioral information about
fraud victims. Three compelling data points turned up about both young
and older adults that help illustrate the success of educational
campaigns surrounding ID fraud and prevention.

Respondents between the ages of 18 and 24 who reported falling
victim to ID fraud in 2007 were the most likely group of consumers to
put fraud alerts on their credit reports, with 67 percent
acknowledging that this as an immediate first step. Of this age group,
47 percent purchased identity fraud insurance, nearly three times the
rate as any other age group polled.

Older adults, commonly considered a leading demographic group
preyed upon by criminals, have learned from ID prevention campaigns
urging Americans to move financial transactions to more secure
methods, such as online. Respondents aged 65 and older who fall victim
to ID fraud are now the least likely to send checks through the mail,
one of the most common methods criminals use to obtain personal
financial information. Technologies such as online banking and bill
payment continue to prove effective as methods for preventing ID
fraud.

Six Most Important Safety Tips to Protect Consumers

-- Monitor your accounts regularly online at bank and credit card
websites. Americans who monitor their accounts online are most
likely to uncover suspicious or unauthorized activity.

-- Review your credit information no less than once per year,
either for free at annualcreditreport.com or through many
financial institution Web sites.

-- Never provide sensitive financial information over the phone
or Internet, including Social Security numbers, passwords,
PINs or account numbers, unless you placed the call directly
to a verified and trusted location, such as the number on back
of a credit card or statement.

-- Install and regularly update firewall, browser, anti-spyware,
and anti-virus security software on your personal computer,
and keep operating systems updated.

-- Move your financial transactions online by turning off paper
invoices, statements and checks, including paychecks, and
replacing them with electronic versions where offered by
employers, banks, utilities or merchants. Avoid mailing checks
to pay bills or deposit funds in your banking account.
Instead, pay bills online and use remote deposit check imaging
services on online banking sites.

-- Reduce unnecessary access to your personal information
wherever possible. For example, don't carry Social Security
cards, unused credit cards or checks, and don't leave
sensitive documents out in the open.

For Additional Educational Tips, Please Access:

CheckFree Corporation, now part of Fiserv, Inc.
www.checkfree.com/idprotect

Visa Inc.
www.visa.com/security

Wells Fargo
www.wellsfargo.com/privacy_security/fraud_prevention/

To take an identity fraud safety quiz and download a free consumer
ID fraud report, visit www.idsafety.net.

Webinar to Review Data

Today, Monday, February 11, at 1:00 p.m. ET/10:00 a.m. PT, Javelin
will hold an interactive webinar to review the data in the report and
allow questions to be asked of its analysts over instant message
format. To attend the webinar, please go to
https://www1.gotomeeting.com/register/277289993.

About Javelin Strategy & Research

Javelin is the leading independent provider of
nationally-representative, quantitative research focused exclusively
on financial services topics. Based on the most rigorous statistical
methodologies, Javelin conducts in-depth primary research studies to
pinpoint dynamic risks and opportunities.

For more information on this project or other Javelin studies,
visit www.javelinstrategy.com/research.

All trademarks are the property of their respective owners

Javelin Strategy & Research
James Van Dyke, 925-225-9100
or
For Javelin Strategy & Research
Chuck Kabat, 781-684-0770
javelin@schwartz-pr.com

Copyright Business Wire 2008