News & Resources

How ID verification, data security intertwine

Nov 08, 2013 Dave King

The prevalence of data breaches has continued to intensify in the past several years, while many experts believe that digital security issues are directly leading to higher volumes of identity theft crimes. Businesses need to be more proactive and comprehensive when approaching ID verification standards, and understand that data security and privacy protection now fall into this category of identity defense.

InfoSecurity Magazine recently reported that a new study from Javelin Strategy and Research revealed that roughly one-quarter of all data breach victims end up experiencing fraudulent activity as a result. This is a somewhat harrowing statistic, as research has indicated that the number of data breach victims has spiked significantly in the past several years.

According to the news provider, Javelin found that 4.4 million of the 16 million data breach victims recorded in 2012 went on to experience identity theft related to existing credit or debit cards. This showed that a data breach that only affected one account can quickly lead to more compromised banking services and information in the future.

Hackers and thieves do not necessarily need a lot of information to successfully steal a victim's identity. However, the sensitivity of financial data is far more weighty than other types of information, and can be used to quickly ruin the victim's credit standing.

The source added that Al Pascual, senior analyst at Javelin, stated that these thieves are stealing information from retailers, businesses and health care providers, then using that data to carry out broader schemes on corporations and consumers.

For these reasons and more, businesses need to become more mindful and aware of the threats that abound in the digital and physical landscapes. Failure to adequately protect employee, corporate or consumer information can lead to damaged brand reputations, crippling sanctions, significant fines and incurred financial losses.