AmEx Survey Finds Consumer Comfortable with Increased ID Security

According to a consumer survey on identity theft released by American Express, more than two-thirds of consumers  have noticed over the past year that merchants and credit card companies have stepped up identity verification when they are making a purchase. With reports of identity theft on the rise, most consumers say they like these stepped-up measures.

According to the survey, 43 percent of respondents say they have been asked for zip code verification, followed by signature verification (36 percent), requests for additional personal identification (34 percent), and requests for additional security numbers, such as Card Identification Numbers, or unique numbers found on credit cards that are different from the card account number (31 percent). Twenty two percent say they have received a call from their credit card company to verify a purchase.

American Express offers shoppers some simple steps to reduce their risk.

-- First, do not disclose personal information unnecessarily - especially a Social Security number.

-- Second, monitor all statements and view credit bureau reports one to two times annually.

-- And third, shred all discarded personal information.

According to the survey, sizable numbers of consumers report experiences that might put them at risk of identity theft.

Consumers report that Social Security numbers continue to be used frequently for routine identity verification. More than half (56 percent) of those surveyed have been asked for their Social Security numbers over the phone or in written form as part of an application or an in-person or online transaction. Many of these requests are legally required: 41 percent of consumers report they were asked for a Social Security number in a credit or loan application, and 30 percent were asked on employment forms. But other requests may not be: more than a third (35 percent) say they were asked for their Social Security number on medical insurance forms, 16 percent on college and school forms, 12 percent as part of an online transaction, and 6 percent when making a purchase in a store.

According to the survey, consumers have also adopted new habits to protect personal information online (62 percent). Men are more likely than women to have adopted new online habits (73 percent vs. 54 percent), as are younger people (73 percent of those 18 - 34), and those with household incomes more than $75,000 (81 percent).

Many have changed their behavior to secure their personal information online, including adding software to protect personal information (44 percent overall; 58 percent of men, 34 percent of women), and being more selective where they shop online (39 percent overall; 47 percent of men, 33 percent of women).

Many consumers surveyed believe online shopping is more secure this year than last (41 percent), about a third (31 percent) believe it is as secure as last year, and 14 percent believe it is less secure.