by Emily Stewart
It’s hard to imagine what our lives would be like without digitized data, online banking, and access to our personal information from our mobile devices. And while we’ve all heard about the risks of identity theft, it feels like a random stroke of bad luck that couldn’t possibly affect us. However, the cost of this type of fraud goes beyond just the individual victim. A video posted recently by InsuranceQuotes.org outlines a number of important statistics regarding the hidden cost of data theft. This includes financial fraud, identity cloning, and medical identity fraud.
Every time an identity is stolen, the economy will lose approximately $22,346. But what may come as a surprise is that most of the cost comes from trying to right the financial wrong, rather than the crime itself. In fact, it can take up to 5,000 hours of work from consumers, lawyers, accountants, and IRS employees to try to correct records and credit reports. Beyond just the individual victim, the IRS may lose as much as $21 over the next five years due to identity theft. Worldwide, businesses also stand to lose close to $221 billion a year as a result of this type of crime. For more information, check out the video.