Identity Theft Losses – Reconciling the Data From 2023

The Federal Trade Commission (FTC) released comprehensive and alarming data on fraud and identity theft in the U.S. for 2023. According to the report, more than 1 million identity theft cases were logged, and between fraud and identity theft, there were over $10 billion in losses. These figures shed light on the growing identity theft and fraud epidemic, urging individuals to be more vigilant than ever. 

In this article, we will dive into the key findings from the FTC and Experian reports, highlighting fraud statistics, identity theft trends, and the importance of consulting an identity theft attorney if you’re impacted.

Fraud and Identity Theft Losses in 2023

The FTC logged over 2.6 million fraud-related complaints in 2023, leading to financial losses exceeding $10.3 billion. This marks a nearly 16% increase from the $8.9 billion losses reported in 2022. The most prevalent type of fraud complaint was impostor scams, where criminals posed as trusted figures to steal money or personal information. Over 856,000 such complaints were reported—a 12% increase from 2022.

Other common fraud categories included:

• Online shopping scams: Over 376,000 complaints, with frequent issues surrounding undelivered goods.
• Investment scams: 110,388 complaints, with the highest financial losses ($4.8 billion), an increase of 24% from the previous year.

Identity Theft Statistics

Identity theft continues to be a major concern, with over 1 million complaints in 2023, although this represents a slight 6% decrease compared to 2022. Credit card fraud remains the largest category, with over 426,000 complaints, followed by loan and bank fraud.

A surprising and alarming trend is within the government document or benefits fraud category, which surged 68% compared to 2022. Criminals increasingly targeted individuals by creating fake government documents or filing fraudulent benefit claims, such as unemployment benefits or tax returns.

How Scammers Engage Victims

Scammers use various channels to contact their victims, with email being the most common method. In 2023, email fraud accounted for 358,540 reports and total losses of $430 million. However, phone scams had the highest median financial loss of $1,485 per victim, proving particularly devastating to those affected.

Fraudsters also increasingly use websites, text messages, and social media to reach potential victims, with social media scams alone resulting in $1.4 billion in losses.

How to Protect Yourself From Identity Theft

Given the alarming statistics on fraud and identity theft, adopting preventive measures to safeguard personal information is essential. Some of the most effective strategies include:

• Securing electronic devices: Locking phones, tablets, and computers with face or fingerprint recognition.
• Utilizing multi-factor authentication: This measure can add an extra security layer for online accounts.
• Regularly checking credit reports: Monitoring for unfamiliar activity can help catch fraud early.
• Avoid storing credit card information online: This helps reduce the risk of exposure in a data breach.

Why an Identity Theft Lawyer is Critical if You’re a Victim

If you have fallen victim to identity theft, prompt action is crucial to limit further damage. One of the best steps is to hire an experienced identity theft lawyer. Legal professionals specialize in identity fraud cases and are equipped to help you resolve complex issues, including disputes with creditors and financial institutions. 

By acting quickly and getting the legal assistance you need, you can minimize the long-term impact and regain control over your personal and financial life.