2013 DATA BREACH FRAUD IMPACT REPORT: Mitigating a Rapidly Emerging Driver of Fraud

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Contemporary research on the financial impact of data breach events has focused on costs to businesses and institutions, but largely ignored their effect on the consumers whose personally identifiable information (PII) is compromised. This report elucidates the real connection between data breach and consumer fraud and demonstrates that a single massive data breach can result in billions of dollars in consumer fraud losses.

Data breach victimization has been increasingly correlated with fraud incidence over the past three years, with a walloping 23% of data breach victims in 2012 becoming fraud victims. Fraudsters are improving at mining large data sets at the same time as businesses and institutions of all types are facing an onslaught of data breaches. The Open Security Foundation reports an all-time high of 1,611 breaches in 2012, a 48% increase over 2011, and Verizon asserts that fully 75% of these attacks are motivated by financial gain.

While not all data breaches can be prevented, this report outlines best practices for preventing breach events and protecting consumers in their aftermath.

Checkout Data Breach Leads to Identity Fraud Infographic

Primary Questions

  • What is the correlation between data breaches and consumer identity fraud?
  • Which types of information are being targeted and misused by criminals?
  • How have recent data breaches been disclosed?
  • Which security procedures and protocols could have been utilized so as to avoid recent breaches?
  • How can consumers be empowered in the fight against breach related identity fraud?
  • What are the projected costs associated with the misuse of breached consumer data?


Companies Mentioned

Global Payments

Utah Department of Health



Northwest Florida State College


South Carolina Department of Revenue



Case Study: Utah Department of Health Services

While some data breaches may be the result of a dedicated and well conceived effort by hackers to penetrate a fortified server security perimeter, the compromise of a Utah Department of Health (UDOH) server that began on March 30th, 2012 was anything but sophisticated. Rather, it was a glaring security oversight by a contract employee that facilitated the theft of sensitive personal information belonging to more than ¾ million Utah residents – the impact of which reverberated across state agencies and will continue to plague Utahns for the foreseeable future.

Read More

Associated Press, Study Finds Total Cost of 2012 Utah Health Breach Could Approach $406M. - A 2012 security breach that exposed the personal information of 780,000 Utah residents to hackers could cost as much as $406 million, a new Javelin study finds. Read More


Published Date: June 2013

Price: Department license - $2,000/ Enterprise license - $4,500

(24 pages; 13 charts/graphs)

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