Guest post from CyberGhost:

Did you know the odds of being struck by lightning in a given year are only around 1 in 100 million? That’s not a scary thought, since most people survive.

But the odds of becoming a victim of identity theft? Much higher, and rising fast. In 2024, the Federal Trade Commission received over 1.1 million reports of identity theft, accounting for nearly 18% of all fraud-related complaints, with total losses from identity fraud and scams estimated to be $47 billion.

Identity theft is one of the most common — and costly — consequences of a data breach. And today, with the help of AI tools and publicly available personal data, it’s easier than ever for criminals to steal your identity. So what does identity theft actually look like? Let’s break it down and look at how you can recognize the warning signs and protect yourself.

What Is Identity Theft

Identity theft occurs when someone uses your personal identifying information (like your name, social security number, or credit card number) without your knowledge or permission. The purpose of identity theft is to commit fraud or other crimes.

Identity thieves gain financial advantages or other benefits, while victims suffer financial loss and possibly other severe consequences, including being accused of a crime they didn’t commit.

How Identity Thieves Grab Your Information

In the past, identity thieves used to steal wallets or purses to get IDs and credit cards. While this still happens, it’s far more convenient for thieves to exploit digital methods.

In 2024, 80% of data breaches were caused by cyberattacks, most of which involved personal information leaks. 64% of Americans have never checked to see if they were affected by a data breach.

So, here is how identity thieves steal your data nowadays:

• Fill out change-of-address forms to forward mail, hoping to get your personal and financial information from your correspondence. For example, scammers find a loyalty card from your favorite store and have a new one issued to their address.
• Skim information from ATMs – attackers place an electronic device over the ATM, and capture credit or debit card information
• Grab personal information that was previously shared or posted on unsecured websites or public Wi-Fi networks.
• Hack into your device using malware or spyware.
• Buy personal information from a third-party source (e.g., a company employee who has access to your applications for credit).
• Steal electronic records through a data breach.
• Send phishing emails or fake text messages (aka smishing) specifically designed to steal sensitive information.
• Trick users into installing fake apps that request access to personal information.

One of the newest ways identity thieves target victims is through AI-generated scams. Since ChatGPT’s launch in 2022, phishing volume has surged by over 4,000%, and deepfake impersonations are now being used to convincingly mimic people. In 2024, scammers used AI-generated video and voice to impersonate the CFO of a British engineering group and steal $25 million from the company.

AI makes these scams harder to detect by creating highly personalized, error-free messages and lifelike video or voice forgeries. Experts warn that AI-enabled fraud could cost up to $40 billion in the United States alone by 2027.

The Reason Behind Identity Theft

Once thieves get your information, they move on to the next phase of the identity theft process.

Depending on what kind of information they’ve stolen, here are the most frequent purposes of identity theft:

• • To steal your money or benefits;
  • To sell your information on the dark web;
  • To impersonate you.

Let’s go through them one by one.

Steal Your Money or Benefits

If they have your credit card number, name, and address, a criminal may be able to make unauthorized charges to your credit card.

With more information on their hands, they might also be able to:

• • Get new credit cards in your name;
  • File a tax return to steal your tax refund;
  • Use your stolen airline miles;
  • Open a phone, electricity, or gas account;
  • Receive medical treatment using your health insurance information;
  • Apply for government benefits.

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