Wealth is typically associated with power, happiness, and freedom. However, wealth does not make you immune to cyber crimes. A study was done by Experian, a fraud protection services company, comparing incident reports of identity fraud, with demographics. A significant association was found between wealth and higher incident of identity fraud.
This association may be surprising to some, as a common assumption is that cyber criminals target victims with poor levels of security. However, it is less about the ease of committing identity fraud, and more about the level of reward that results from it. Targeting UHNW and HNW individuals, regardless of the extra time and resources it takes, can result in a larger “win” for the cyber criminal. Let’s look at the likelihood of identity fraud based on different demographic categories from the Experian Study.
Likelihood of Identity Fraud Based on Demographic Category
The Experian study looked at three demographic categories, “Affluent Suburbia,” “Upscale America,” and “American Diversity.” Let’s dive into each one.
"Affluent Suburbia"
“Affluent Suburbia” consists of people living in the wealthiest households in the United States. These households are typically in luxury, suburban neighborhoods. Compared to a general population of credit applicants, this demographic category is 43% more likely to be victims of identity fraud.
"Upscale America"
“Upscale America” consists of families with an “upscale income,” comfortable lifestyle, and large homes. Compared to a general population of credit applicants, this demographic category is 22% more likely to be victims of identity fraud.
"American Diversity"
“American Diversity” is a group of people with middle-class incomes, typically from “blue-collar service-industry jobs.” Compared to a general population of credit applicants, this demographic category is 13% more likely to be victims of identity fraud.
Trust Strategic Advisory Group
Based on the data from the Experian study, wealth does not grant you immunity from identity fraud. The “Affluent Suburbia” demographic group has the highest likelihood of identity fraud victimization, while the “American Diversity” demographic group has the lowest. Based on this, the wealthier the demographic group, the higher the risk for identity fraud victimization. This blog covers some of the precautions high-net-worth individuals, such as the “Affluent Suburbia” demographic, can take to lower risk of cyber crime. For other security solutions such as cyber investigations, advanced encryption, 24/7 monitoring and support, and more, contact SAG at +1.203.489.5592
