[Dataloss] Surging Losses, but Few Victims in Data Breaches

[Dissent]

http://www.nytimes.com/2006/09/27/technology/circuits/27lost.htm   (reg. req.)


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Regardless of the data breach, a rise in financial fraud has not 
surfaced. Visa and MasterCard report that about 2 percent of the card 
accounts lost or stolen in the last 18 months have been used to make 
fraudulent purchases. That is within the range of the 1.5 percent and 
4 percent of consumers who reported being victims of financial fraud 
or identity theft, surveys say.

Card companies say that fraud losses in 2005 over all were about 6 
cents per $100 for merchandise bought on credit, a low level that has 
varied little in the last few years. (Numbers were much higher years 
ago; for example, in 1992, losses accounted for nearly 16 cents per 
$100 for merchandise bought on credit.)

"The amount of fraud from these data breaches is remarkably small," 
said Chris Thom, the chief risk officer for MasterCard.

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