Understanding Identity Theft and Fraud: Protect Yourself in 2023
Identity theft and fraud are significant issues that continue to affect millions of people each year. In 2023, the U.S. Federal Trade Commission (FTC) received over 1 million complaints of identity theft and more than 2.6 million complaints of related fraud, resulting in financial losses exceeding $10 billion. This blog will delve into the latest statistics, how scammers engage victims, and what you can do to protect yourself.
Fraud Statistics
In 2023, the most common type of fraud reported to the FTC involved imposter scams. These scams, where criminals pose as trusted entities to trick victims into transferring money or disclosing personal information, accounted for over 856,000 complaints, a 12% increase from 2022. Online shopping scams were the second most common, with more than 376,000 complaints, a 3% increase from the previous year.
Investment-related scams, which include bogus seminars and fraudulent investment opportunities, ranked fourth in the number of complaints but had the highest financial losses, totaling over $4.8 billion. The median loss per case in this category was $8,000, a 60% increase from 2022.
Top Fraud Incident Report Categories for 2023
- Imposter scams: 856,284 complaints
- Online shopping and negative reviews: 376,460 complaints
- Prizes, sweepstakes, and lotteries: 158,070 complaints
- Investment-related scams: 110,388 complaints
- Business and job opportunities: 108,459 complaints
Identity Theft Statistics
The FTC received 1,036,961 complaints of identity theft in 2023, a 6% decrease from 2022. The most common form of identity theft involved hijacked and newly opened bogus credit card accounts, which prompted 426,038 complaints, a 5% reduction from the previous year. However, the category with the largest increase was the creation of bogus government documents and false benefits claims, which saw a 68% rise in complaints.
Top Identity Theft Report Categories
- Credit card fraud: 426,038 complaints
- Other identity theft: 279,313 complaints
- Loan or lease fraud: 171,932 complaints
- Bank fraud: 145,285 complaints
- Government documents or benefits fraud: 102,205 complaints
How Scammers Engage Victims
In 2023, 56% of fraud complaints specified the communication channel used by criminals. Email was the most widely used method, cited in 358,540 reports, with median financial losses of $571 per victim. Phone calls were the second most common method, with 298,210 cases and the highest median financial loss of $1,485 per victim.
Identity Theft Reports and Losses by Contact Method
- Email: 358,540 reports, $430 million in losses, $571 median loss
- Phone call: 298,210 reports, $851 million in losses, $1,485 median loss
- Text: 230,961 reports, $372 million in losses, $1,000 median loss
- Website or app: 193,734 reports, $895 million in losses, $224 median loss
- Social media: 181,327 reports, $1,487 million in losses, $341 median loss
Identity Theft Statistics by State
In 2023, the District of Columbia had the highest number of identity theft complaints per 100,000 residents, with 478 complaints. Georgia ranked second with 458 complaints per 100,000 residents. Florida, Nevada, and Connecticut rounded out the top five states for identity theft complaints by population.
How Quickly Can You Resolve Identity Theft-Related Issues?
The 2023 Consumer Aftermath Report from the Identity Theft Research Center (ITRC) surveyed identity fraud victims and found that:
- 10% of victims who consulted the ITRC resolved their issues within one week.
- 65% of ITRC victims reported unresolved issues up to 12 months after discovery.
- 40% of victims who did not consult the ITRC resolved their issues in less than a week.
- 10% of non-ITRC victims were still resolving issues months after discovery.
What Should You Do if You’re an Identity Theft Victim?
If you believe you are a victim of identity theft, act quickly to minimize damage. Here are some steps to take:
- Report the fraud to the FTC’s IdentityTheft.gov website or call their hotline at 877-438-4338.
- Place a fraud alert or security freeze on your credit reports.
- Contact financial institutions and lenders to alert them of fraudulent accounts.
- Review bank and credit card statements for unfamiliar transactions and report them immediately.
- Notify the IRS if you are a victim of tax-related identity theft.
How to Protect Yourself From Identity Theft
Here are some proven measures to protect yourself from identity theft:
- Secure electronic devices with automatic screen locks and biometric recognition.
- Use multifactor authentication for added security.
- Utilize a password manager to generate and store secure passwords.
- Regularly check your credit reports for suspicious activity.
- Avoid storing credit card information online.
- Consider identity theft protection services for early fraud detection.
The Bottom Line
Fraud and identity theft remain major concerns in the U.S., with financial losses in 2023 reaching an all-time high of $10.3 billion. Awareness and preparation are your best defenses against becoming a victim. Tools such as free credit monitoring can help you spot criminal activity and shut it down before it does lasting harm.
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