AI-Driven Scams Push Identity Theft Losses Higher in 2024, Victims Face Record Losses Amid AI-Fueled Scams

The Identity Theft Resource Centre (ITRC) has released its 2025 Trends in Identity crime Report, which shows a worrying pattern: although while the number of recorded identity crimes went down in 2024 compared to 2023, the financial impact on victims is going up a lot.The research talks about how identity crimes are changing, becoming more complicated, targeted, and driven by AI. 

The main reasons for this change is that cybercriminals are using AI more and more.Scams made by AI are getting more believable and harder to recognise, therefore victims are being targeted more than once.The percentage of people who had a multiple identity-related incidents went up from 15% in 2023 to 24% in 2024. 

AI has changed the rules for hackers.They now use techniques like generative AI to make fake identification documents, deep fake voices, and realistic phishing messages.These methods not only make impacts bigger and more accurate, but they also make them easier to carry out.This has made it possible for even new scammers to steal people's identities in complicated ways with minimal cost. 

Experts also say that victims typically don't disclose these crimes because they are embarrassed, feel guilty, or don't know where to go for help.This "victim fatigue" comes from the constant flow of scams, including frauds through emails and SMS, and the lack of action by authorities. Because of this, individuals are becoming less sensitive and feel that they can't do anything. 

Search engine algorithms have also made it more difficult for victims to identify where to get help.It's getting harder to find support since organisations like the ITRC and the law enforcement are being pushed down in search results. 

Another scary trend is the rise in stealing documents. In 2024, complaints of stolen driver's licences went up to 22%, up from 20% the year before. Complaints of stolen Social Security cards went up to 20%, and reports of stolen birth certificates went up to 8%, up from just 1%.These basic documents are useful for thieves who want to construct fake identities and commit fraud on a massive scale. Criminals don't always have to break into databases. They get personal information from broker websites, public records, and past data breaches instead. This mix of information is enough to pretend to be someone else or make up a fake identity. 

The ITRC report does raise awareness, but it doesn't give people or organisations any practical advice. Experts say that people need clear steps to take to lower their risk, including as taking personal information off such broker sites, increasing their digital hygiene, and being careful about disclosing sensitive information online. 

As identity crimes change with AI, it's obvious that people need to be aware of the expanding digital threats and take action to protect themselves.

Information referenced in this article is from Tech News World