Account-hijacking ID theft study released

WASHINGTON (12/16/04)--The Federal Deposit Insurance Corp. (FDIC) released a study for public comment Tuesday on a type of identity theft known as account-hijacking, one of the fastest growing forms of identity theft in the country. Guidance may be issued in 2005.

Account-hijacking is the unauthorized access and misuse of existing account information primarily through a scheme known as phishing. Phishing is the process of sending tens of thousands of fraudulent emails in the guise of legitimate government agencies and businesses asking recipients to verify or provide confidential financial information, which is then used to either steal a person's identity or hijack their accounts.

The Federal Trade Commission estimates that nearly two million Internet users in the U.S. experienced account hijacking during the 12 months ending April 2004. Of those, 70% do their banking or pay their bills online and over half believed they received a phishing email.

Te FDIC says financial institutions and their regulators should consider a number of steps to help reduce online fraud, including:

  • Upgrading existing password-based single-factor customer authentication systems to two-factor authentication;
  • Using scanning software to identify and defend against phishing attacks;
  • Strengthening educational programs to help consumers avoid online scams; and
  • Placing a continuing emphasis on information sharing among the financial services industry, government and technology providers.

  Resource Link
FDIC Study


More Washington

Copyright © 2012 Credit Union National Association