IDENTITY FRAUD: SUSCEPTIBILITY IS NOT SPECIFIC TO AGE - AUGUST 2021 - AARP
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IDENTITY FRAUD: SUSCEPTIBILITY IS NOT SPECIFIC TO AGE AUGUST 2021 PART OF THE ESCALENT FAMILY
IDENTITY FRAUD:
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SUSCEPTIBILITY IS NOT SPECIFIC TO AGE
TABLE OF CONTENTS
Foreword .................................................................................................................................................... 3
Overview .................................................................................................................................................... 3
Executive Summary .................................................................................................................................. 4
Recommendations for Financial Service Providers ............................................................................. 6
Recommendations for Consumers ........................................................................................................ 7
The Criminal Raconteur: Teller of Tales.................................................................................................. 8
The Criminal Lifeline: Impostor and Tech Support Scams ................................................................ 11
Criminal Miscalculation: U.S. Adults Ages 65+ Might Not Be the Ideal Victims............................. 13
The Signs of Deception .......................................................................................................................... 15
Golden Rules for Maintaining a Safe Distance from Identity Fraud ............................................... 18
Appendix ................................................................................................................................................. 19
Methodology .......................................................................................................................................... 20
About AARP............................................................................................................................................. 20
About Javelin Strategy & Research .................................................................................................... 21
TABLE OF FIGURES
Figure 1. Criminals Have More Success with Consumers Ages 18-49 ............................................... 9
Figure 2. The Impact of Identity Fraud ................................................................................................ 10
Figure 3. 58% of U.S. Adults 50+ Are Targeted by Impostor Calls .................................................... 11
Figure 4. Identity Fraud Scams Are Not One-Size-Fits-All .................................................................. 13
Figure 5. The Criminal Zodiac................................................................................................................ 15
Figure 6. Red Flags Exhibited by Victims of Identity Fraud ............................................................... 16
Figure 7. Identity Fraud Golden Rules.................................................................................................. 18
Figure 8. Percentage of Victims Affected by Scams and Identity Fraud ...................................... 19
Figure 9. Severe Impact of Identity Fraud Has Increased 200% Since 2014 .................................. 19
© 2021 Escalent and/or its affiliates. All rights reserved.
IDENTITY FRAUD:
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FOREWORD
This report explores the risk that identity fraud scams have
on U.S. adults aged 50+. As criminals pursue multiple targets
in their quest to steal personally identifiable information,
there is a complete lack of regard for the person who loses
his or her identity. There is no code of ethics that draws a
line of acceptable behavior that cannot be crossed. This
latest exploration of identity fraud, sponsored by AARP, will
draw parallels between the actions of criminals and the
overall effect those actions can have on victims of identity
fraud and identify fraud scams.
Javelin Strategy & Research maintains complete
independence in its data collection, findings, and analysis.
OVERVIEW
Though scams may vary across generations, all groups are
prime targets for criminals. The impact of identity fraud
scams on victims affects their quality of life, financially and
emotionally. Those who experience scams are often
reluctant to report the crimes out of shame that makes
them feel incapable of handling their personal business
affairs. The truth of the matter is that any person of any age
can be ensnared by identity fraud and identity fraud
scams. U.S. adults aged 50+ are in some ways faring better
than other generations, due in part to their vigilance and
cautious examination of contact with persons unknown to
them. The stakes for U.S. adults aged 50+ are higher than
for other age groups, however, as the average losses in an
identity fraud scam tend to be higher for those who have
accumulated more wealth and physical assets during their
lifetime.
Being able to identify criminal red flags is a positive step
toward reducing the incidence of identity fraud. Equal
importance should be placed on the role provided by
financial service providers to offer education and problem
resolution as lifelines to identity fraud victims.
© 2021 Escalent and/or its affiliates. All rights reserved.
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EXECUTIVE SUMMARY
Among US adults aged 18-49, 37% cite a criminal with remote access to the victim’s
severe effect on their lifestyles after device.
experiencing identity fraud. Younger
generations have more debt and tend to US adults aged 65+ did not engage with
struggle with underemployment issues that criminal scammers in three specific
magnify the problems associated with incidences. Javelin discovered that
identity fraud. criminals were not very successful in
persuading US adults aged 65+ to
US adults aged 50+ are less likely than participate in identity fraud scams involving
younger generations to be victimized by gift cards and debt collection schemes,
identity fraud scams. Scams affected 38% and face-to-face contact. Fake or stolen
of victims aged 18-49 in comparison to 18% gift cards affected just 10% of US adults
of those 50+ who may have been aided by aged 50- 64; within that same
a growing knowledge about self-protection demographic, 8% experienced debt-
and stronger device security habits. collection scams, and 13% reported actual
face-to-face contact with criminals.
Identity fraud losses continue to grow as
criminals adapt their tactics to consumers’ 29% of American consumers aged 50+
lifestyles. Identity fraud losses in 2020 made purchases online for goods and
totaled $56 billion (USD). This figure services that never existed. American
represented a combined total of $13 billion consumers aged 18-49 did not fare any
(USD) for traditional identity fraud (down better, with similar numbers of consumers
21% from 2019) and $43 billion (USD) for making purchases online for goods and
identity fraud scams, which Javelin services that did not exist. During the
measured for the first time in 2020. COVID-19 pandemic, there was such an
incredible demand for protective gear and
Tech-support scams are claiming more cleaning supplies that many consumers
victims aged 18-49. 22% of US adults aged resorted to blindly trusting online entities for
18 to 49 experienced more tech-support much-needed personal items.
scams than US adults aged 50-65 (13%) and
65+ (14%). Tech-support scams always Bill payment fraud is a growing threat to
begin with some form of unsolicited phone consumers. Bill payment fraud affected a
call or screen pop-up message that wide stratum of consumers, with 21% of US
conveys urgency and prompts the victim to adults aged 65+ experiencing bill payment
click on a dangerous link or provide the fraud, a higher percentage than US adults
aged 50-64 (13%). Bill payment fraud
© 2021 Escalent and/or its affiliates. All rights reserved.
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happens when a criminal sends a falsified 65+ reporting fraud within the same P2P
invoice to a potential victim and demands, category.
for example, payment for a past-due utility
bill or carpentry work. Impostor scams remained a huge problem
in 2020. US adults aged 50+ reported
Money-movement fraud affects more US speaking to an impostor during a phone
adults aged 18-49. Fraud losses stemming call more so than younger generations.
from peer-to-peer payments (P2P), such as Criminal impostors often pose as
Venmo or Cash App, affected 21% of government officials or other persons of
consumers aged 18-49. Older consumers authority in an effort to persuade victims to
fared much better, with 14% of consumers divulge information or to deceive them into
aged 50-64 and 19% of consumers aged performing funds transfers for urgent
expenses.
© 2021 Escalent and/or its affiliates. All rights reserved.
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RECOMMENDATIONS FOR
FINANCIAL SERVICE PROVIDERS
Use new terminology for describing victims Focus on account-takeover fraud (ATO).
of identity fraud. Criminals clearly have no Those who perpetrate Identity fraud have a
conscience when it comes to targeting high degree of affinity for ATO fraud. As
people—their goal is simply financial gain consumers embrace technology and
and manipulation when it comes to identity adopt digital behaviors across multiple
fraud. Financial service providers (and platforms, their risk increases for ATO.
others) who are interested in removing the Financial institutions need to ensure that
stigma from identity fraud need to be more supporting technology is in place to help
conscious about the words they choose to identify behavioral and device anomalies
describe victims. Eliminating phrases that that are typically consistent with ATO and
suggest the victim is responsible for having identity fraud.
been defrauded is the first step in liberating
victims to seek counsel with trusted advisors Automate fraud reporting across apps and
without shame or fear of financial ruin. other digital channels. Consumer frustration
can often begin with the process of
Learn how to identify the red-flag behaviors reporting unusual activity on an account.
of identity fraud victims. Financial service Identity fraud victims, if unassisted by
providers and trusted caregivers need to identity-protection services, are often
familiarize themselves with behaviors working by themselves to resolve their fraud
exhibited by most identity fraud victims. situation. Financial service providers need
Being able to spot the early stages of to realize that a streamlined process for
criminal manipulation can lessen the reporting fraud is necessary within branded
impact felt by victims in terms of financial banking apps and other online options.
loss and shame. Changes in behavior like Consumers should be able to quickly flag a
increased spending, unusual secrecy, and transaction and report it as fraud without
unexplainable urgency are more obvious having to cross over to a browser-based
to spot with some increased sensitivity. option.
© 2021 Escalent and/or its affiliates. All rights reserved.
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RECOMMENDATIONS FOR CONSUMERS
Ignore requests for urgent forms of Avoid communicating with strangers about
payment. Consumers need to understand serious matters. People who have never
that urgent requests for payment from physically met before are technically
someone they have never met face-to- strangers, to varying degrees. Criminals can
face are immediate red flags. Equally adopt a series of personas designed to
important consideration should be given deceive consumers into trusting them, so it
any time a stranger asks for an unusual is still never a good idea to discuss highly
form of payment, such as gift cards, as confidential or financially sensitive matters
payment for debts and urgent matters. with unknown parties.
Protect passwords and login information Verify everything and follow up at a later
with the same consideration given to your date. Identity thieves count on several
medical information. Usernames and overly elements to optimize their theft of
-simple passwords are risky elements. consumer information. The faster a criminal
Varying usernames and marrying them to incites a consumer with threatening or
more complex and varied passwords is a financially lucrative ploys the more
much safer alternative. Writing down chances they have to be successful as
password hints and usernames and criminal impostors. To curtail this classic
keeping them in a safe location can also behavior simply hang up, disconnect, go
be a low-tech solution for consumers who offline and verify with legitimate business
are afraid of forgetting multiple partners and others whether a matter
combinations. Tech-savvy consumers can requiring attention truly exists.
also utilize password managers.
© 2021 Escalent and/or its affiliates. All rights reserved.
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THE CRIMINAL RACONTEUR:
TELLER OF TALES
Javelin’s 2021 Identity Fraud Study: Shifting damage that they must resolve. Identity
Angles explored traditional identity fraud fraud scams, on the other hand, are
along with a contemporary categorization relatively easy to orchestrate and present
for identity fraud originating from scams. an opportunity for criminals to bypass the
Javelin’s study revealed that Identity fraud fraud-detection barriers maintained by
losses in 2020 totaled $56 billion (USD). This financial services providers by directly
figure represented a combined total of $13 targeting consumers. A noteworthy
billion (USD) for traditional identity fraud characteristic of identity fraud scams is that
(down 21% from 2019) and $43 billion (USD) consumers often recall the moment they
for identity fraud scams, which Javelin interacted with a criminal, for example,
measured for the first time in 2020. The through a text, a call, or an email.
increase in overall fraud losses and a
renewed focus on identity fraud scams Criminal scammers are successfully
necessitated a change in how Javelin persuading consumers to perform a variety
analyzes identity fraud. As criminal tactics of actions that result in financial losses (see
have changed over the years, the Figure 1). Just more than a quarter of
consumer has become an intense focal American consumers (28%) aged 50+
point as the path of least resistance to made purchases online for goods and
criminal success. Javelin found it necessary services that never existed. During the
to redefine identity fraud into two tactics— COVID-19 pandemic, there was such
the traditional means of fraud and scams— incredible demand for protective gear and
to best reflect how criminals have changed cleaning supplies that many consumers
their approaches in the years since the resorted to blindly trusting online entities for
inception of this study. much-needed personal items.
The routine theft and usage of consumers’ American consumers aged 18-49 did not
personally identifiable information (PII) for fare any better, as 29% of them also made
criminal profit is still regarded by Javelin as purchases online for nonexistent goods and
traditional identity fraud. When it comes to services. Bill payment scams also affected
traditional identity fraud, consumers have a a wide stratum of consumers, with 21% of
scant perspective on the exact time and US adults aged 65+ experiencing bill
technique used by criminals to steal their payment fraud, a higher percentage than
information; they simply understand that a those 50-64 (13%). Bill payment scams
loss of PII occurred, resulting in financial typically happen when a criminal or
impostor contacts a potential victim and
© 2021 Escalent and/or its affiliates. All rights reserved.IDENTITY FRAUD:
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Generational Losses During the Execution of an Identity Fraud Scam
Figure 1. Criminals Have More Success with Consumers Ages 18-49
28%
Made purchases online 28%
29%
21%
Paid bills 13%
24%
19%
P2P payments and transfers 14%
21%
Made digital wallet payments (Apple Pay, 18%
11%
Google Pay) 20%
International money transfers through Western 16% 65 +
11%
Union, etc 18% 50 to 64
16% 18 to 49
Deposited checks 16%
17%
Made purchases over the phone or through 15%
14%
the mail 16%
15%
Withdrew cash from an ATM 11%
17%
15%
Bought prepaid cards/gift cards 15%
15%
0% 10% 20% 30%
Source: Javelin Strategy & Research, 2021
demands direct payment for a past-due process. No one wants to feel like they
utility bill, as an example. were incapable of making good decisions,
especially when those feelings are
The contact with the crook can be via magnified by the perceived judgment of
email, phone, or in-person, and the sheer others. As identity fraud victims shoulder self
urgency of losing essential utilities is just one -doubt and shame, they can spiral into
trigger that results in a successful identity moral distress that leads to feelings of toxic
fraud scheme for the criminal. Sadly, many anger, social isolation, and even suicide.
consumers are reluctant to report
fraudulent or suspicious contact because The ability of the perpetrator to suspend
they are left feeling responsible for the the consumer’s disbelief is part of the
actions of the criminal, just one of the process of identity fraud scams and why
emotional byproducts for victims to they are successful. The “teller of tales,” in
© 2021 Escalent and/or its affiliates. All rights reserved.IDENTITY FRAUD:
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this case, is simply a criminal raconteur who A similar loss pattern involving digital wallets
has the ability to strike the right balance showed that 61% of US adults aged 65+
between the consumer’s sense of risk and having more fraud than US adults aged 50-
reward and thus can manipulate the victim 64. The higher fraud rates affecting US
into divulging information or making adults aged 18-49 more so than their older
payments and transfers that directly send counterparts could be related to several
funds to criminally controlled accounts. factors, including digital curiosity, longer
screen time, and activity spread across
Identity fraud scams that used money- multiple digital platforms. Javelin reported
movement products—ranging from P2P on a similar generational phenomenon in
payments like Cash App and Venmo, the 2020 Identity Fraud Study, Genesis of
takeovers of digital wallets like Apple or the Identity Fraud Crisis, which
Google Pay, and wire transfer services like demonstrated that younger generations
Western Union—tended to ensnare are often victimized more by identity fraud
American consumers aged 18-49, but because they have an optimism bias that
across other generations, consumers aged makes them feel impervious to fraud risk.
65+ experienced more P2P fraud than their
peers aged 50-64.
2020 Combined Identity Fraud Losses
Figure 2. The Impact of Identity Fraud
$13 Billion
ID Fraud
$56 Billion in
$43 Billion
Combined ID Fraud Scams
Losses
49 Million
Victims
Source: Javelin Strategy & Research, 2021
© 2021 Escalent and/or its affiliates. All rights reserved.IDENTITY FRAUD:
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THE CRIMINAL LIFELINE:
IMPOSTOR AND TECH SUPPORT SCAMS
The Federal Trade Commission received The goal of impostor calls is to trigger the
more than 2.1 million fraud reports from scam victim into sending funds or
consumers in 2020, with impostor scams purchasing gift cards or taking some other
remaining the most common type of fraud action that directly benefits the impostor
reported to the agency. Javelin, in a with financial gain. Criminal impostors
similar fashion, discovered that impostor might make individual calls to their victims
scams alone took the top spot in how or pre-record mass “robocall” messages
multiple generations were victimized by that are randomly sent to thousands of
criminals in 2020. A combined 27% of US potential victims. Robocalls might
adults aged 50+ reported speaking to an announce a special opportunity to obtain
impostor during a phone call. Impostor a preferred interest rate on a credit card or
fraud begins simply with a criminal make claims that the call recipient is
pretending to be someone else. somehow negligent in paying bills. A
Criminals Succeed with Impostor Calls Made to US adults 50+
Figure 3. US adults 50+ Are Targeted More Frequently by Impostor Calls
36%
Impostor phone call 22%
21%
14%
Tech Support Scam 13%
22% 65 +
50 to 64
9%
Bought something on social media that never 18 to 49
14%
arrived
21%
7%
Cashed a counterfeit check 13%
17%
0% 10% 20% 30% 40%
Source: Javelin Strategy & Research, 2021
1 https://www.ftc.gov/news-events/press-releases/2021/02/new-data-shows-ftc-received-2-2-million-fraud-reports-consumers.
Published February 4, 2021; accessed July 6, 2021.
© 2021 Escalent and/or its affiliates. All rights reserved.IDENTITY FRAUD:
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combination of scam triggers, whether some form of unsolicited phone call or
negative or positive, best represents why screen pop-up message that conveys
criminals cast emotional arrows during the urgency and pushes the consumer to take
execution of impostor scams. immediate (and costly) action to repair his
or her device. When criminals onboard a
Criminals are also targeting consumers consumer device using mobile remote
aged 50+ via tech support scams that prey access technology, the losses can be even
on victims’ fears that a serious virus is higher because the criminal is now able to
present on computers or mobile devices, take over the computer or mobile device
thus necessitating an immediate repair. to harvest login credentials and access
Tech support scams always begin with financial accounts.
© 2021 Escalent and/or its affiliates. All rights reserved.IDENTITY FRAUD:
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CRIMINAL MISCALCULATION: US ADULTS AGED
65+ MIGHT NOT BE THE IDEAL TARGETS
Consumers often identify with the products that focused on debt collection, gift cards,
and services they use. This normal and face-to-face interactions with
inclination to make purchasing decisions criminals. The opposite held true at the
based on need, status, and price has upper end of the age scale, as US adults
fueled the success and legend of Madison aged 65+ remained impervious to such
Avenue advertising companies for years. criminal tactics, with zero percent of study
Criminal scams also seem to have a higher respondents reporting fraud linked to debt
level of success when they address needs collection, gift cards, and face-to-face
specific to a particular victim’s lifestyle, interactions with criminals.
interests, and habits. More damage was
experienced in every case by US adults Fee-based job offer scams in 2020 (see
aged 18-49 who were victimized by scams Figure 4) affected 13% of U.S. adults aged
Victims Respond to Scams that Align with Their Lifestyle and Habits
Figure 4. Identity Fraud Scams Are Not One-Size-Fits-All
4%
Fee-based job offer 7%
13%
Did money transfer (Western Union, 4%
21%
MoneyGram, etc) 20%
4%
Timeshare re-sell 8%
14%
2% 65 +
Home improvement scam 14% 50 to 64
19%
18 to 49
Purchased gift cards that do not work (were 0%
10%
fake or stolen) 16%
0%
Debt collection fraud 8%
14%
Through face-to-face contact with a 0%
13%
criminal 17%
0% 10% 20% 30%
Source: Javelin Strategy & Research, 2021
© 2021 Escalent and/or its affiliates. All rights reserved.IDENTITY FRAUD:
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18 to 49. Success rates for this identity fraud respectively). Only 4% of US adults aged
scam make sense because the victim age 65+ responded to scams involving wire
group fits well into the normal workforce transfers, perhaps because they lacked a
age in the United States. Other examples supporting mobile app or were unwilling to
that illustrate the correlation between age travel to an appropriate outlet to perform
and scam tactics were more dramatically the requested transfer. Timeshare re-sell
obvious. Wire transfer scams resulted in scams were also avoided by the majority of
similar rates of loss for respondents in the 18- US adults aged 65+, with only 4% reporting
49 and 50-64 age groups (20% and 21%, scam activity.
© 2021 Escalent and/or its affiliates. All rights reserved.IDENTITY FRAUD:
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THE SIGNS OF DECEPTION
Criminals will often adopt various personas opportunity to extract financial gain by
to help them manipulate their victims. Their manipulating their fellow human beings
goal is to take advantage of consumers with false narratives, coercive or insincere
100% of the time without remorse or regard personas, and psychological insight that
for the victim’s wellbeing. Understanding would make Sigmund Freud
how criminals manipulate outcomes by proud. Criminals who perpetrate identity
assuming particular personas during an fraud scams are sometimes labeled social
identity fraud scam casts a powerful lens engineers because they manipulate social
on scenarios that are repeated over and interactions for personal financial gain.
over across a wide stratum of victims. Experienced criminals understand that one
Threats can be minimized when victims and size does not fit all in terms of how their
their trusted advisors are able to quickly potential victims respond to certain
spot potential criminal behavior. personas. The right persona applied
The only thing that criminals’ value is the alongside the perfect emotional trigger
Common Personas Criminals Use to Manipulate Outcomes
Figure 5. The Criminal Zodiac
Source: Javelin Strategy & Research, 2021
© 2021 Escalent and/or its affiliates. All rights reserved.IDENTITY FRAUD:
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can often deliver the exact outcome a Part of the problem here is the shame and
criminal is seeking. A great example judgment that scam victims experience
involves the Punisher persona (see Figure 5), when they come into contact with words
which relies on heightened emotional that reference victims as duped, swindled,
triggers that require prompt resolution, such or rooked. Saying someone “fell for” a
as a relative in jail who needs immediate scam immediately suggests a lack of
bond for release. The criminal in this intelligence or wisdom and places blame
scenario always offers up a succinct on the victim and not squarely on the
payment solution, such as money transfers, criminal, where it belongs.
or the acceptance of gift cards in
exchange for a speedy resolution. Victims, Being able to identify the traits of
in turn, might display unexplained urgency deception can be a valuable tool for
and secrecy that is not even disclosed to consumers and financial services providers
their trusted relatives and advisors. These alike. (see Figure 6) Financial service
situations create a heightened emotional providers, emotional support professionals,
state that often prevents the victim from and trusted advisors need to better identify
accessing the logical thinking required to the red flags associated with victims of
verify if their relative is actually in jail. identity fraud so they can help potential
victims realize that they might be
How to Spot Potential Identity Fraud Victims
Figure 6. Common red flag behaviors
INCREASED SPENDING UNUSUAL SECRECY
Identity fraud victims might suddenly When typically sociable
tap into savings or liquidate individuals self-isolate and stop
investments without plausible communicating, there could be
reasons. Victims might also apply for cause for concern. Criminals
lines of credit that don’t fit their often coach their victims to
current financial lifecycle. maintain complete secrecy,
suggesting looming danger or
budding romance.
UNUSUAL TRANSACTIONS
Consumers develop transactional SUDDEN ROMANCE
habits over an extended period. Adults lacking social and digital
Sudden usage or wires, peer-to- sophistication are perfect targets
peer payments, and money for romance scams. Sudden
transfer services for unusually declarations of love and a
large or steady amounts might steady stream of funds transfers
indicate criminal influence. to largely unknown persons are
prime indicators of such scams.
BLIND FAITH UNEXPLAINABLE URGENCY
Scam victims often develop Urgently sending funds,
unwavering faith in their criminal purchasing gift cards, or
oppressors. Many victims struggle reshipping parcels without
with the realization that they have explanation can often be a sign
been victimized despite evidence of criminal manipulation.
presented by trusted advisors.
Source: Javelin Strategy & Research, 2021
© 2021 Escalent and/or its affiliates. All rights reserved.IDENTITY FRAUD:
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interacting with a criminal or have done so transactions such as wire transfers are all
in their recent past. red flags that require careful evaluation.
Thoughtful conversations that encourage a
Identity fraud victims may, for example, slower and more cautious approach to
exhibit unusual secrecy in their personal sending money or reacting to the pressing
and business dealings when a criminal is demands of potential scammers should be
manipulating them. Often the scenarios conducted in a way that preserves victim
that criminals use to ensnare their victims dignity while diminishing the blind faith the
involve the resolution to financial problems victims may have invested in their criminal
and, quite often, the promise of romance. oppressor.
Increased spending and unusual financial
© 2021 Escalent and/or its affiliates. All rights reserved.IDENTITY FRAUD:
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GOLDEN RULES FOR MAINTAINING A
SAFE DISTANCE FROM IDENTITY FRAUD
Consumers and financial institutions are that unlocks how consumers will react to
often seeking identity fraud information for the measures they wish to take to better
similar purposes. The consumer usually educate and protect their account
wishes to increase personal security while holders. These corresponding goals easily
resolving complications that arise from align into a series of golden rules that
identity fraud. Financial institutions, on the should be embraced by consumers and
other hand, are often seeking information their trusted advisors.
Recommendations for Consumers and Financial Service Providers
Figure 7. Identity Fraud Golden Rules
FINANCIAL SERVICE PROVIDERS
RESPECT EDUCATE PROTECT DETECT
Treat identity Teach client Deploy Create in-app
fraud victims service staffers biometrics that and online options
with dignity and to Identify red detect account that help
empathy flags exhibited takeover fraud consumers quickly
by victims report fraud
CONSUMERS
VALIDATE DEFEND REPORT VERIFY
Gift cards are Use unique and Alert business Pause, disengage,
never legitimate complex partners to and seek to verify
forms of payment passwords for all potentially the validity of the
accounts fraudulent events encounter
Source: Javelin Strategy & Research, 2021
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APPENDIX
U.S. Adults Aged 18-49 are Victimized at a Higher Rate than Older U.S. Adults
Figure 8. Percentage of Victims Affected by Scams and Identity Fraud
18-49 50-64 65+
40% 38%
Percentage of total victims
35%
30%
25%
19% 20%
20% 17%
15% 14%
15%
10%
5%
0%
Identity Fraud Scams Traditional ID Fraud
Source: Javelin Strategy & Research, 2021
Identity Fraud Victims Experience Growing Impact to Their Lives
Figure 9. Severe Impact of Identity Fraud Has Increased 200% Since 2014
2020 33%
44%
2019 24%
51%
2018 19%
57%
Severe impact
2017 24%
52% Low impact
2016 8%
71%
2015 9%
75%
2014 11%
69%
0% 20% 40% 60% 80% 100%
Source: Javelin Strategy & Research, 2021
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METHODOLOGY
This report, sponsored by AARP, focuses on how U.S. adults aged 50+ are affected by identity
fraud and identity fraud scams. This report was adapted from the 2021 Identity Fraud Study,
published by Javelin Strategy & Research in March 2021. Javelin Strategy & Research maintains
complete independence in its data collection, findings, and analysis.
ABOUT AARP
AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering
people 50 and older to choose how they live as they age. With a nationwide presence and
nearly 38 million members, AARP strengthens communities and advocates for what matters
most to families: health security, financial stability, and personal fulfillment. AARP also produces
the nation's largest-circulation publications: AARP The Magazine and AARP Bulletin. To learn
more, visit http://www.aarp.org or follow @AARP and @AARPadvocates on social media.
© 2021 Escalent and/or its affiliates. All rights reserved. This report is licensed for use by Javelin Strategy & Research Advisory
Services clients only. No portion of these materials may be copied, reproduced, distributed or transmitted, electronically or
otherwise, to external parties or publicly without the permission of Escalent Inc. Licensors may display or print the content for their
internal use only, and may not sell, publish, distribute, re-transmit or otherwise provide access to the content of this report without
permission.
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ABOUT THE AUTHOR
ABOUT JAVELIN
STRATEGY & RESEARCH
Javelin Strategy & Research, part of the Escalent
family, helps its clients make informed decisions
in a digital financial world. It provides strategic
John Buzzard
insights to financial institutions including banks,
Lead, Fraud & Security
credit unions, brokerages and insurers, as well as
payments companies, technology providers,
fintechs and government agencies. Javelin’s
independent insights result from a rigorous
research process that assesses consumers,
CONTRIBUTORS:
businesses, providers, and the transactions
Jacob Jegher ecosystem. It conducts in-depth primary
President research studies to pinpoint dynamic risks and
Tracy Kitten opportunities in digital banking, payments, fraud
Director, Fraud & Security
& security, lending, and wealth management.
Alec Frank For more information, visit
Analyst, Cybersecurity
www.javelinstrategy.com. Follow us on Twitter
James Lee
Analyst, Digital Banking and LinkedIn.
Crystal Mendoza
Production Manager
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