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BizReport : Trends & Ideas archives : November 13, 2014

Survey reveals Americans' lax attitude to online password management

The Federal Trade Commission receives millions of complaints each year with identity theft consistently topping the list. However, according to new research one in five Americans continue to use the same password they use for banking on a variety of other websites.

by Helen Leggatt

When ID Watchdog polled 1,300 Americans, they found that despite a fear of identity fraud and frequent reports in the media of large organizations' data being hacked, 20% of Americans remain lax when it comes to safeguarding and regularly updating their online passwords. One in 4 has never changed their banking personal identification number or password and just 44% were more cautious a a result of recent data breaches with national retailers.

In 2013, Americans reported losing more than $1.6 billion to fraud, with more than 2 million complaints received in total, of which 14% were concerned with identity theft.

"In this digital age, all of our digital information is at risk," said Michael Greene, chairman and CEO of ID Watchdog, an online identity theft protection service. "Hackers steal account credentials in the thousands to millions at a time, and with those credentials they steal your identity."

Other findings from the survey include:

- 40% said that at least one other person knows their banking username and password;

- 1 in 10 admits to having given a bank card and PIN to a friend or co-worker to allow them to take cash from an ATM or make a purchase;

- 1 in 3 worries that the friend or co-worker they revealed their PIN to might one day take advantage of their trust;

- 1 in 3 said they know their spouse or partner's PIN;

- 1 in 10 admits to knowing their mother's PIN;

- 16% had previously fallen victim to identity theft mostly from stolen wallets, purses, social security numbers and mail.

"It is important to protect your passwords and use strong combinations with alternate characters and numbers, but don't write them down," said Greene. "Users should change their passwords regularly, and also to be sure to use different passwords on your different accounts. It's the same as locking your door when you leave the house for the day."

Tags: identity fraud, online banking, personal data

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