Identity Fraud Study: Scammers Exploit Personal Information, Fueling a Cycle of Fraud
SAN FRANCISCO, March 25, 2025 – Javelin Strategy & Research, part of the Escalent Group, has released its 22nd annual Identity Fraud Study, titled “Breaking Barriers to Innovation.” The study highlights a concerning evolution in fraud tactics, where scammers are increasingly seeking personal information (PII) to exploit victims long after the initial scam.
The report reveals that fraudsters are no longer solely focused on immediate financial gain. Instead, they are actively collecting PII to facilitate a range of malicious activities, including:
- Opening new fraudulent accounts.
- Taking over existing financial or non-financial accounts.
- Using stolen information for further scams.
- Selling compromised data to other criminals.
This shift poses a significant threat to both individual consumers and financial institutions, exacerbating the broader fraud landscape. The more PII attackers obtain, the easier it is for them to execute large-scale fraud schemes.
“Fraud professionals must start thinking beyond existing restrictions and envisioning future possibilities,” stated Jennifer Pitt, senior analyst in Javelin’s Fraud & Security practice and the report’s author. “Real innovation comes from looking ahead and developing future-ready solutions.” This involves strengthening fraud detection, enhancing identity verification, fostering inter-industry collaboration, and leveraging advanced technology to proactively disrupt fraudulent activities.
The Javelin study found that a staggering 7 in 10 victims who lost money to a scam were also tricked into divulging PII, unknowingly contributing to this escalating cycle of fraud. Email addresses (43%), phone numbers (38%), and banking details (28%) are among the most common types of information stolen. These seemingly harmless details can become digital keys to multiple accounts, increasing the risk of ongoing identity theft and financial losses.
Other key findings from this year’s report include:
- Fraud and scam losses surged to $47 billion, a $4 billion increase from the previous year, impacting 40 million victims.
- Identity fraud accounted for $27 billion in losses across 18 million victims, while scams resulted in $20 billion in losses affecting 22 million victims.
- Consumers reported a rise in suspicious communications: 54% saw more unusual text messages, 47% more emails with suspicious links, 44% more robocalls, and 42% more emails with suspicious attachments.
- 39% of account takeover fraud victims had their checking accounts compromised, and 23% had their email accounts taken over.
- Worryingly, 12% of fraud victims chose not to report their incident, with 22% believing nothing could be done and another 22% unaware of how to report it.
Pitt advises consumers to adopt a “verify, then maybe trust” mindset. “Consumers should pause before taking action, especially before clicking on links or providing personal information.” Javelin’s Identity Fraud Study provides crucial insights into the financial and emotional consequences of identity fraud in the United States.
About Javelin Strategy & Research
Javelin Strategy & Research, part of the Escalent Group, provides strategic insights in the digital financial sphere, guiding financial institutions like banks, credit unions, fintechs, and government agencies. Their independent research pinpoints risks and opportunities in digital banking, payments, fraud and security, lending, and wealth management. Learn more at javelinstrategy.com.
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