Online ID Theft Hyped

From: Schneier on Security

Does this surprise anyone?

While keylogging software, phishing e-mails that impersonate official bank messages and hackers who break into customer databases may dominate headlines, more than 90% of identity fraud starts off conventionally, with stolen bank statements, misplaced passwords or other similar means, according to Javelin Strategy & Research.

"An insignificant portion of identity fraud actually starts with the Internet," said James Van Dyke, president of Javelin, who pointed out that many firms still rely on simple security questions such as one's mother's maiden name. "The Internet always grabs the headlines, but it is individuals who are close to the victims, such as family and friends, that are doing most of it," he said.