Out of sight, out of mind: consumer reaction to news on data breaches and identity theft
We use the 2012 South Carolina Department of Revenue data breach to study how data breaches and news coverage about them affect consumers? take-up of fraud protections. In this instance, we find that a remarkably large share of consumers who were directly affected by the breach acquired fraud protection services immediately after the breach. In contrast, the response of consumers who were not directly exposed to the breach, but who were exposed to news about it, was negligible. Even among consumers directly exposed to the data breach, the incremental effect of additional news about the breach ...
Credit and identity theft
The quintessential crime of the information age is identity theft, the malicious use of personal identifying data. In this paper, the authors present a model of identities and their use in credit transactions. The incidence of identity theft represents a tradeoff between a desire to avoid costly and/or invasive monitoring of individuals on the one hand, and the need to control transaction fraud on the other. The results suggest that technological advances will not eliminate this tradeoff.
Credit cards' benefits outweigh chance of ID theft
Identity theft: where do we go from here?
The identity theft forum sponsored by the Payment Cards Center of the Federal Reserve Bank of Philadelphia and the Gartner Fellows Program brought together a broad range of stakeholders to discuss the important issue of identity theft. Participants from the financial services and merchant industries, Internet service and technology providers, and regulatory and law enforcement agencies examined issues faced by consumers, merchants, and banks in fighting this financial crime. Discussants shared methodologies used to combat this crime and explored opportunities for coordination in searching for ...
Taken to lunch
One lunch tab cost Jason Snyder more than $10,000 after information from the personal check he wrote was used to steal his identity. There are easy ways to reduce fraud.
Divided we fall: Fighting payments fraud together
Summary of workshop on recent developments in consumer credit and payments
On September 24-25, 2009, the Research Department and the Payment Cards Center of the Federal Reserve Bank of Philadelphia held their fifth joint conference to present and discuss the latest research on consumer credit and payments. Sixty participants attended the conference, which included seven research papers on topics such as securitization and distressed loan renegotiation, consumer disclosure, data breaches and identity theft, and the effects of the U.S. financial crisis on global retail lending. In this article, Mitchell Berlin summarizes the papers presented at the conference.
Risks of identity theft: Can the market protect the payment system?
Identity theft has been a feature of financial markets for as long as alternatives have existed to cash transactions. But identity theft has recently occurred on a much larger scale. Data breaches often involve the apparent loss or acknowledged theft of the personal identifying information of thousands--or millions--of people. ; Identity theft poses risks, not only to individuals, but to the integrity and efficiency of the payment system--the policies, procedures, and technology that transfer information for authenticating and settling payments among participants. Identity theft can cause a ...
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