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BizReport : Mobile Marketing : February 24, 2012

Study: Smartphone users at increased risk of ID fraud

A Javelin Strategy report found that smartphone users are more likely to become a victim of identity theft.

by Helen Leggatt

javelin strategy logo.jpgA survey of over 1,000 UK mobile users, conducted by Affinion, found that 60% have concerns that they put their privacy at risk when using a mobile device.

A new survey from Javelin Strategy & Research reveals they are right to be concerned. More than 11.6 million adults in the U.S. were victims of identify fraud last year, an increase of almost 13% on 2010.

Seven percent of smartphone users were victims of identify fraud, significantly higher than the 4.9% fraud rate among the general population.

The reason their smartphone use leaves them at risk is because many (62%) don't protect their device using a PIN or password and a third admitted to saving login information to their devices.

Smartphone users also run the risk of personal information being made available to anyone if they lose their smartphones or leave them unattended. Some apps can 'steal' personal information, valuable to fraudsters trying to access bank accounts, without user consent.

"Consumers must be vigilant and in control of their personal data as they adopt new mobile and social technologies in order to not make it easier for fraudsters to perpetrate crimes," said James Van Dyke, president of Javelin Strategy and Research.

Tags: identity theft, mobile apps, mobile fraud, mobile marketing, security

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