As credit and debit cards use rises, more people seek ways to keep their identity to themselves.
New York, NY (PRWEB) July 09, 2014
The Identity Theft Protection Services industry has experienced slow growth over the past five years, including an expected revenue expansion in 2014. The industry remained relatively resilient in the face of the economic downturn, with revenue falling only slightly in 2009 despite significant drops in consumer and business income. Since then, the slowly recovering economy has helped the industry grow due to an increasing number of high profile data breaches, an increase in e-commerce and internet-based transactions, the use of social networks, and the introduction of m-commerce.
According to IBISWorld Industry Analyst Sarah Kahn, “rising demand has mostly been the result of the proliferation of the internet into nearly all financial activities.” Most point-of-sale systems can quickly accept credit or debit cards for payment, which also makes them an easy target for identity fraud. In addition, the rise of internet banking has made it easy for a person's entire finances to come under threat as the result of compromised passwords. Finally, the use of mobile phones in both financial account management and, increasingly, financial transactions have created another target for identity thieves. Due to these factors, demand for identity protection has steadily increased over the past five years. A number of high-profile security breaches compromised the financial information of millions of consumers, which also bolstered industry demand, such as the breaches of Zappos, LinkedIn, and Target. These breaches demonstrate to consumers the need for identity protection services and, as a result, demand has increased.
Steady growth is expected to continue over the five years to 2019. This growth will be stimulated by the increasing amounts of personal information shared over the internet and mobile devices, as well as the continued recovery of consumer income and business spending, leading both to invest more in industry services. “Increased regulation poses a threat to long-term growth of the industry, as industry operators are frequently on the receiving end of complaints regarding misleading advertising and contract terms,” says Kahn. Regulatory intervention in this regard will likely lead to depressed revenue for industry operators.
For more information, visit IBISWorld’s Identity Theft Protection Services in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Identity Theft Protection Services industry primarily provide software and services aimed at reducing the risk of identity theft from online or electronic media. Firms frequently use monitoring software to track unauthorized use of credit and other personal information.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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