American adults lost a staggering $47 billion to identity fraud and scams in 2024, an increase of $4 billion over the previous year. This figure, detailed in a report backed by AARP and produced by Javelin Strategy & Research, underscores the persistent and escalating threat these crimes pose to individuals across the country.
The report, based on a survey of over 5,000 U.S. adults, breaks down the losses into several categories. Traditional identity fraud, where criminals obtain and misuse personal information like Social Security numbers or bank account details, accounted for $27 billion. This type of fraud impacted 18 million people, a rise from the 15 million affected in the prior year.
In addition to traditional identity theft, the study revealed that scams, which involve perpetrators using psychological manipulation to steal money or personal data, resulted in losses of $20 billion. These scams can often lead to identity fraud, with criminals using the stolen information to open fraudulent accounts or take over existing ones.
Jennifer Pitt, Javelin’s senior fraud analyst and the report’s author, explained that many scams target older adults, potentially because criminals perceive them as having substantial savings, being overly trusting, and less comfortable with technology.
The report attributes the overall increase in identity fraud to technological advancements that have outpaced security measures, creating exploitable gaps for criminals. The growing number of data breaches and inadequate U.S. privacy laws, where organizations often share or sell data without consumer consent, further exacerbate the problem.
“Information is more of a hot commodity than just money because information can be used. You can sell information to get money or use it to open new fraudulent accounts or take over existing accounts,” said Pitt.
Furthermore, the report highlighted that 71% of survey respondents who lost money to scams shared personal information with the perpetrators.
Rising Trends in Fraud
Account takeovers and new-account fraud are significant areas of concern. Account takeover fraud resulted in $15.6 billion in losses in 2024, a jump from $12.7 billion the previous year, while new-account fraud reached $6.2 billion, compared to $5.3 billion.
Common Tactics of Identity Thieves
Criminals employ various methods to access personal information, including identity fraud scams where they manipulate consumers into revealing sensitive data. These scams often involve phishing attempts, where scammers send emails or texts to obtain personally identifiable information, sometimes including malicious links. Impersonation scams, where criminals pose as government agencies, law enforcement, delivery services, banks, or toll road services, are also prevalent.
The report also indicated that texts are becoming a preferred method for criminals to contact potential victims, with 54% of survey respondents who experienced identity fraud in 2024 initially contacted through text messages, up from 49% in 2023.
Older adults tend to lose more money to these crimes than younger people. The Federal Trade Commission found that victims in their 70s reported a median loss of $1,000 to fraud, compared to a median of about $417 reported by those in their 20s.
Identity theft can also occur without a scam, through unauthorized access to personal information, frequently resulting from large-scale data breaches of online platforms.
Data Breach Statistics
Despite the efforts to protect against breaches, data leak statistics are still increasing. The Identity Theft Resource Center recorded 3,158 data breaches last year, which mirrors the 3,205 breaches of 2023, but is considerably higher than the 1,801 breaches in 2022.
Protecting Yourself From Identity Fraud
Here are some key steps to protect yourself against identity fraud:
- Be Aware: Pay close attention to what information you’re sharing and the context in which you’re sharing it.
- Verify: Before providing personal information, question the request. Ask why the information is needed and how your data will be protected. As Pitt advises, “Think about verifying instead of trusting.”
- Report Scams: Contact the AARP Fraud Watch Network Helpline at 877-908-3360 or use the AARP Scam Tracking Map to report suspicious activity.
- Freeze Your Credit: Restrict access to your credit by freezing your credit with each of the three major credit bureaus to prevent new accounts from being opened in your name.
- Use Unique, Strong Passwords: Create complex passwords for each account and consider using a password manager to keep track of them.
- Use Multifactor Identification: Enable multifactor authentication for added security. Some financial institutions provide the option to add another layer of security with multifactor identification.
- Secure Public Wi-Fi: Avoid using unprotected public Wi-Fi networks. If you must use public Wi-Fi, install a Virtual Private Network (VPN) to protect your data.
- Protect Your Devices: Use a PIN or passcode to secure laptops, tablets, and smartphones to prevent unauthorized access.
Resources: Report fraud to local law enforcement and the FBI’s Internet Crime Complaint Center, IC3.gov. The AARP Fraud Watch Network has a toll-free helpline (877-908-3360), where trained volunteers provide victims and family members with support and guidance on next steps.
