Most point-of-sale systems can quickly accept credit or debit cards for payment, which also makes them an easy target for identity fraud.
(PRWEB) April 10, 2015
The Identity Theft Protection Services industry has experienced a slow expansion over the past five years, growing an average of 2.4% annually, including an expected 3.0% revenue increase in 2015 to reach $3.2 billion. The industry remained relatively resilient in the face of the economic downturn. Since then, the industry has grown due to a slowly recovering economy, an increasing number of high-profile data breaches, the introduction of m-commerce and a rise in e-commerce and social networks.
Rising demand has mostly been the result of the proliferation of the Internet into nearly all financial activities. According to IBISWorld Industry Analyst Sarah Kahn, “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, due to the rise of Internet banking, a person's entire finances can come under threat as a result of compromised passwords.” The use of mobile phones in financial account management and transactions has made them another target for identity thieves. Due to these factors, demand for identity protection has steadily increased over the past five years. Additionally, a number of high-profile security breaches compromised the financial information of millions of consumers, such as the breaches of Zappos, LinkedIn, JP Morgan, Home Depot and Target. These breaches have demonstrated 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 2020, stimulated by the increasing amount 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 could depress 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 this 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.
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