Could you be at higher-than-normal risk for credit card fraud or identity theft? According to a recently released study by the credit rating agency Experian, if you live in an affluent suburban neighborhood or an upscale metropolitan area, and/or hold an advanced college degree, then yes, indeed, you could be in a higher-risk category.
According to the study, affluent suburbans top the list of the most at-risk consumers for identity fraud. The study was based on an analysis of 5,000 independent records of fraud and 34,000 record of non-fraud. It compared data from Experian Marketing Services’ Mosaic system, a lifestyle segmentation system, which classifies U.S. households and neighborhoods according to demographics, lifestyle preferences, and behavioral characteristics.
Consumers in “Affluent Suburbia,” i.e. the wealthiest and often most exclusive neighborhoods, were found to be the most common victims of identity theft and credit card fraud. According to the study, fraud victims were 43 percent more likely to live in affluent suburban neighborhoods than non-victims. Second on the list were those in the “Upscale America” demographic: college-educated couples and families living in metropolitan sprawl, who have high incomes, large homes, and comfortable, active lifestyles. The number of fraud victims in this category was 22 percent higher than that of non-victims. Victims were 13 percent more likely to hold a college level degree and 73 percent more likely to hold an advanced degree.
In sum, like the burglars of yore, identity thieves tend to target the affluent. People living in wealthy neighborhoods may be protected against burglary by a private security service. However, that does not secure them against e.g. a house help or workman getting a hold of vital personal information or from someone lifting credit card statements from their trash. The most common form of identity theft is using someone’s personal information to open a checking account, a credit card account, or a mobile phone account. In 43 percent of identity theft cases, the fraud is perpetrated by someone that the victim knows. The cost to victims, on average, is upwards of $6,000.
Strangely, credit card fraud targets were also 85 percent more likely to list tennis and 50 percent more likely to list skiing as hobbies; they were 71 percent more likely to be politically active or involved, and 70 percent more likely to enjoy foreign travel than their non-victim counterparts. The victims were also more likely to be involved in charities, volunteering and cultural pursuits. However, don’t stop playing tennis or foreswear charitable activities to lower your chances of identity theft just yet. The latter findings likely simply describe the typically lifestyle preferences of high-income Americans, rather than characteristics of identity theft victims.
To a target of identity theft, the experience of discovering fraudulent card charges can be overwhelming. Although credit card companies offer financial protection against fraud, consumers still have the hassle of sorting out the unauthorized activity, not to speak of having to deal with the stress of being a victim of fraud.
No one is immune to credit card fraud and identity theft, so even if you don’t fit the typical profile of victims, it’s important to take steps to protect yourself. Most effective of all is simply to maintain awareness of what the dangers are and how they work. Follow commonsense precautions against credit card fraud and identity theft to keep your personal information safe. In addition, always be on the look-out out for common indicators of fraud, such as:
- Bills from unfamiliar sources for good or services you don’t remember buying
- Inquiries or information about accounts you did not open on your credit report
- Billing statements showing strange charges
- Calls from creditors or collection agencies
If you suspect you may be a victim of credit card fraud, contact your card issuer immediately. When detected early on, credit card fraud can be resolved with little or no long-term damage. If identity theft is involved as well, make sure you take the following steps to report the identity theft and protect yourself from further damage.
