TransUnion Reports Data Breach Severity Jumped 31% in Q1 2024 — While Unveiling New Personalized Identity Threat Intelligence to Empower Consumers
TransUnion (NYSE: TRU) reported a 31% increase in data breach severity in Q1 2024 compared to Q1 2023. These findings were presented at the 2024 FinovateSpring conference, where TransUnion also showcased its new enhanced identity threat intelligence technology, TruEmpower™. This technology features BreachIQ, an AI-driven tool that assesses personalized identity risk and provides actionable steps for consumers to protect themselves. The Breach Risk Score (BRS) increased to 4.6 in Q1 2024 from 3.5 in Q1 2023, primarily due to a spike in Social Security number exposures, which appeared in 78% of reported breaches. The Identity Theft Resource Center (ITRC) also reported a 90% rise in data compromises in Q1 2024. TruEmpower's innovative approach aims to help consumers take proactive measures against identity theft, shifting consumer behavior towards improved identity safety.
- TransUnion reported a 31% increase in data breach severity in Q1 2024, highlighting the importance of its new security solutions.
- The Breach Risk Score (BRS) increased to 4.6 in Q1 2024 from 3.5 in Q1 2023, indicating a more critical need for security measures.
- TransUnion's TruEmpower™ technology, featuring BreachIQ, provides personalized identity risk assessments and actionable steps.
- BreachIQ uses a proprietary AI algorithm to generate dynamic risk scores and recommend protective actions.
- TruEmpower's enhanced technology was recognized at the 2024 FinovateSpring conference, adding credibility.
- TransUnion's research shows that consumers who engage with BreachIQ take action to improve their identity threat scores.
- The Identity Theft Resource Center reported a 90% increase in data compromises in Q1 2024, underscoring the need for enhanced security measures.
- The severity of data breaches increased by 31% in Q1 2024, raising concerns over data protection.
- The Breach Risk Score (BRS) climbed to 4.6, up from 3.5, indicating a higher risk environment.
- Social Security number exposures occurred in 78% of breaches in Q1 2024, up from 51% in the same period of 2023.
- High credit and debit card data exposures further escalated the risk levels.
- Despite advanced technology, consumer inaction remains a challenge as many don't take preventive steps against identity theft.
Insights
TransUnion's report on the surge in data breach severity is notable for several reasons. Firstly, the 31% increase in the Breach Risk Score (BRS) from 3.5 to 4.6 in Q1 2023 highlights an ongoing and escalating threat landscape. This increase in severity, particularly the exposure of Social Security numbers in 78% of breaches, could expose consumers to significant risks, potentially leading to higher costs for financial institutions and insurers due to fraud-related losses.
Furthermore, the introduction of the TruEmpower™ solution, with its personalized identity threat intelligence, is crucial. The use of AI to provide a dynamic risk score and personalized guidance could drive consumer engagement and adoption, which might lead to lower fraud incidences and costs associated with identity theft. This tool's ability to adjust scores based on consumer actions presents a proactive approach to identity management, likely appealing to both consumers and businesses.
From an investor's viewpoint, this development could strengthen TransUnion’s position in the market, potentially increasing customer retention and attracting new clients. In the short term, there may be increased operational costs associated with the deployment of these new technologies. However, in the long term, reducing fraud-related costs and enhancing consumer trust could positively impact the company's financial health.
The rise in data breach severity, particularly the significant exposure of Social Security numbers, underscores an urgent need for robust cybersecurity measures. TransUnion’s TruEmpower solution, with its enhanced BreachIQ capabilities, employs advanced AI algorithms to assess and mitigate risks, presenting a sophisticated response to an evolving threat landscape.
The detailed analysis of over 1,300 breach elements to generate a personalized risk score is a notable advancement. It shifts the paradigm from reactive to proactive cybersecurity, offering consumers specific and actionable insights to protect themselves. This is especially relevant given the reported $10.3 billion in consumer losses due to cybercrimes in 2022. By empowering individuals with tailored guidance, this tool can reduce the psychological burden and enhance overall security posture.
For businesses, integrating such intelligent tools means they can offer added value to customers, potentially reducing the frequency and severity of breaches. However, the effectiveness of this technology will ultimately depend on user engagement and the broader adoption of proactive security practices.
Company’s enhanced identity threat intelligence technology recognized at FinovateSpring conference
CHICAGO, May 23, 2024 (GLOBE NEWSWIRE) -- The severity of data breach risks rose to the highest level in two years during the first quarter of 2024, increasing
TruEmpower’s enhanced BreachIQ capabilities use a proprietary AI algorithm for personalized identity risk assessment. The technology analyzes an individual’s comprehensive data breach history, generates a personalized dynamic risk score, and recommends clear and concise actions to protect against identity crime.
Personalized identity risk assessments are of particular importance as TransUnion’s proprietary Breach Risk Score (BRS) revealed the severity of data breaches climbed to 4.6 in Q1 2024, up from 3.5 in Q1 2023. The BRS is compiled by assigning a risk score for each data breach — driven by an AI algorithm analyzing more than 1,300 breach elements and their risks.
TransUnion’s algorithmic analysis showed the increased data breach risks were primarily due to the high level of Social Security number exposures — which occurred in
“Our consumer research shows upwards of three in four Americans consistently express concerns over having their identities stolen. Yet, when surveyed, most admit not taking any action at all,” said Mike Doherty, senior vice president and head of TransUnion’s TruEmpower consumer solutions. “This inaction has long vexed financial institutions that generally bear the brunt of fraud-related losses. People are actually very motivated to take action — they just need a trusted source and personalized guidance for what to do.”
Sounding the alarm on data breaches while providing real-time solutions for consumers
The need for personalized data breach analysis comes amid an alarming rise in data breaches. In the first quarter of 2024, the Identity Theft Resource Center (ITRC) reported a
TruEmpower’s enhanced BreachIQ identity threat intelligence technology was demoed at FinovateSpring where it was a finalist for an award regarding its innovative nature. Building upon TransUnion’s tradition of credit reporting and education — a key to monitoring identity security — it helps demystify what to do after a data breach. BreachIQ displays a dynamic score based on a large pool of data about a consumer’s individual identity vulnerabilities, data exposure from breaches and the fraud mitigation steps they self-report inside the tool. The dynamic score then adjusts, showing improvements as consumers take preventative actions.
The result is a significant change in consumer behavior. While most consumers impacted by data breaches report feeling confused or overwhelmed about what to do (and subsequently take no action), data shows most breach victims who engage with TruEmpower’s enhanced BreachIQ take action to improve their identity threat scores.
“Identity safety is a top financial goal of consumers. They want to understand and counter the identity threats they face. Yet, doing so requires much more personalization than they’ve been able to access. They now have clear insights and guidance at their fingertips,” concluded Jim Van Dyke, senior principal of innovation in TransUnion’s Consumer Interactive business.
Please click here for more information about TransUnion’s TruEmpower identity threat intelligence tools and what consumers can do to mitigate these risks.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.
http://www.transunion.com/business
| Contact | Dave Blumberg TransUnion |
| david.blumberg@transunion.com | |
| Telephone | 312-972-6646 |
FAQ
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