Identity Theft Protection Services Market Trends

Growth Indicators

• Increasing Incidents of Identity Thefts and Cybercrime
  According to the statistics by the Federal Trade Commission (FTC), in the year 2019, over 20% of all the complaints received were recorded as identity thefts.
  
  Identity thefts result in financial losses of individuals. According to the National Crime Victimization Survey of the Bureau of Justice Statistics, the average financial loss associated with identity theft cases was recorded to around USD 3500. To overcome such security issues and reduce the financial losses, the end users, such as enterprises and consumers are increasingly incorporating identity theft protection services.
  
  On the other hand, as organizations depend more on computer networks and electronic data for their daily operations, there is an increase in the pool of financial and personal information, which are stored online. Increasing dependence on the electronic data and the rising use of internet have also given birth to the increasing incidences of cybercrime. The growing misuse of vital information by using the name of legitimate business and enterprise or governmental agencies for stealing the personal and financial information is therefore anticipated to drive the need for the deployment of identity theft protection services, and in turn the growth of the global identity theft protection services market.
• Growing Use of Electronic IDs and Rising Reliance on Internet Based Financial Transactions
  Electronic ID is gaining the center stage as one of the most critical technology trends at the present times. The growing use of digital identity is revolutionizing communication between the individuals and the institutions and is further anticipated to penetrate through the private industry over the coming years. Electronic authentication is an emerging concept for identity management and online verification processes. With the growing emphasis on electronic IDs worldwide, there is a growth in the number of instances of data breaches and identity thefts. The increasing incidents of identity thefts associated with the use of electronic ID are estimated to increase the end user’s focus & investments on the identity theft protection services during the forecast period and in turn drive the growth of the global identity theft protection services market.
  
  On the other hand, rise in the use of internet-based financial transactions on the back of the numerous benefits associated with the services, such as greater convenience and increased transaction speeds for transfer of money between two accounts, have also resulted in the growth in the number of malicious breaches associated with the technology-based financial transactions, which is further estimated to drive the growth of the global identity theft protection services market in the coming years.

Challenges

• High Costs of Deployment and Limited Protection
  One of the significant challenges faced by the organizations deploying identity theft protection services is the high cost of deployment, which significantly hampers the operational expenditures of the organization. Additionally, the identity theft protection services can only take particular action once the identity is stolen. As a result, these services fail to protect the user from initial identity thefts. For instance, the service cannot track if a person uses the victim's identity to obtain a cellphone or use the identity of the victim to create a synthetic identity. This limitation of identity theft protection services is anticipated to hinder the adoption rate over the forecast period.