How Common Is Identity Theft, Really?

Identity theft might seem like something that happens to other people, but the truth is, it’s far more common than many realize. From credit card fraud to full-blown identity theft, millions of people each year find themselves grappling with the consequences of stolen personal information. But just how widespread is identity theft? The statistics may surprise you.

The Shocking Prevalence of Identity Theft

Identity theft has become a growing issue in our increasingly digital world, affecting people of all ages, backgrounds, and locations. According to the Federal Trade Commission (FTC), there were over 1.4 million cases of identity theft reported in the United States in 2021 alone. That’s an increase of nearly 113% compared to 2019, making it one of the fastest-growing crimes in the country.

But those are just the cases that are reported. Experts estimate the actual number is likely much higher, as many people never realize their identities have been stolen—or don’t report it when they do. In fact, a report by Javelin Strategy & Research found that identity fraud losses reached $52 billion in 2021, affecting 42 million Americans.

Types of Identity Theft

Identity theft can take many forms, and its impact can range from minor inconveniences to life-altering consequences. Some of the most common types include:

1. Credit Card Fraud

Credit card fraud is the most common form of identity theft, accounting for nearly 30% of all identity theft reports, according to the FTC. This involves criminals using someone else’s credit card or credit card number to make unauthorized purchases.

2. Employment or Tax-Related Fraud

Criminals may steal personal information to file fraudulent tax returns or obtain employment under someone else’s name. In 2021, nearly 25% of identity theft victims reported issues related to tax fraud.

3. Loan or Lease Fraud

In this type of theft, fraudsters use stolen personal information to apply for loans or leases in someone else’s name. This can lead to serious financial damage, with victims often being unaware until they’re denied credit or face legal action.

4. Government Document or Benefit Fraud

This includes fraud related to social security benefits, unemployment claims, and other government-issued documents. During the pandemic, fraudulent unemployment claims skyrocketed, further inflating identity theft numbers.

How Does Identity Theft Happen?

Identity theft can occur in a variety of ways, often without the victim’s knowledge. Some common methods include:

• Data Breaches: Large-scale data breaches have exposed the personal information of millions of people in recent years. In 2020 alone, 36 billion records were exposed in data breaches, according to RiskBased Security.

• Phishing: Scammers use fake emails or text messages that appear legitimate to trick people into providing their personal information.

• Skimming Devices: Criminals attach skimming devices to ATMs or gas pumps to capture credit card information.

• Mail Theft: Some thieves steal personal information by raiding mailboxes for bills, bank statements, or pre-approved credit offers.

Who Is Most Vulnerable?

Identity theft doesn’t discriminate, but certain groups are more likely to be targeted than others:

• Older Adults: Seniors are often targeted for identity theft due to their retirement savings, social security benefits, and sometimes limited familiarity with digital security measures. The FTC reports that adults aged 60 and older lose an average of $1,000 per fraud incident—double the amount lost by younger victims.

• Children and Teens: Children are increasingly becoming targets for identity thieves, as their personal information can be used without detection for years. The Identity Theft Resource Center (ITRC) found that 1 in 50 children has had their identity stolen.

The Cost of Identity Theft

The consequences of identity theft can be long-lasting and costly. Victims often face:

• Financial Damage: Identity theft can drain bank accounts, ruin credit scores, and result in unauthorized loans or purchases. According to the ITRC, the average cost to resolve identity theft is $1,343.

• Emotional Distress: Beyond the financial losses, identity theft can cause emotional turmoil. Many victims report feeling violated, anxious, and overwhelmed by the process of restoring their identity.

• Time: Recovering from identity theft takes time. The ITRC found that victims spend an average of 200 hours trying to resolve the theft of their identity, often spanning several months or even years.

How to Protect Yourself

While identity theft is common, there are steps you can take to reduce your risk:

1. Use Strong Passwords: Make sure your online accounts are secured with strong, unique passwords. Consider using a password manager to keep track of them.

2. Monitor Your Credit: Regularly check your credit report for suspicious activity. You’re entitled to a free credit report once a year from each of the three major credit bureaus (Equifax, Experian, and TransUnion).

3. Enable Two-Factor Authentication (2FA): Whenever possible, enable 2FA on your accounts. This adds an extra layer of security by requiring a second form of identification.

4. Be Wary of Phishing Attempts: Don’t click on links or download attachments from unfamiliar emails or texts. Always verify the sender’s identity before sharing personal information.

5. Shred Sensitive Documents: Before discarding bank statements, bills, or any other documents with personal information, make sure to shred them to prevent identity thieves from accessing your data.

Conclusion

So, how common is identity theft? The numbers speak for themselves—millions of people are affected every year, and the risk continues to rise as more of our lives move online. But while the threat is real, you can take steps to safeguard your personal information. By staying vigilant, using smart security practices, and monitoring your data with tools like TracerGuard, you can reduce your chances of becoming the next victim of identity theft.