Corporate data breaches are becoming more and more common, posing a significant threat to companies and individuals alike. In 2024, the US witnessed 3,158 publicly reported incidents, nearly reaching an all-time high. As a result, over 1.3 billion data breach notification letters were sent to victims, with more than a billion individuals affected by mega breaches involving over 100 million records each.
However, data breaches are just the tip of the iceberg when it comes to potential threats to personal data security. There are numerous other ways in which cybercriminals can get their hands on personally identifiable information (PII), ultimately leading to identity fraud attempts.
Once stolen, personal data can be sold or distributed to be used in various fraudulent schemes, from illegal purchases to account takeovers, new account fraud, and phishing scams. In some cases, real information may be combined with machine-generated data to create synthetic identities that are harder to detect by fraud filters. The scale of identity fraud is enormous, with Americans losing $47 billion to identity fraud and scams in 2024 alone, according to Javelin Strategy & Research.
The methods used by cybercriminals to perpetrate identity theft are varied and sophisticated. Phishing attacks, which involve tricking individuals into divulging personal information, can come in forms such as email phishing, text message phishing (smishing), and voice call phishing (vishing). Other methods include digital skimming, exploiting unsecured public Wi-Fi networks, malware attacks, malicious advertising, fraudulent websites, and malicious apps, among others.
Preventing identity fraud requires a proactive approach to safeguard personal and financial information. Measures such as using strong, unique passwords for each account, installing reputable security software on all devices, being cautious of phishing attempts, only downloading apps from legitimate sources, and avoiding public Wi-Fi networks can enhance security and reduce the risk of falling victim to identity theft.
In the event of a data breach, individuals can take steps to mitigate the damage. Freezing credit reports, informing banks about potential fraud, filing reports with relevant authorities, changing compromised credentials, and activating two-factor authentication are essential post-breach measures to protect against further fraudulent activities.
Identity fraud remains a persistent threat due to the lucrative nature of stolen personal information for cybercriminals. By being vigilant and taking proactive steps to protect personal data, individuals can minimize the risk of falling victim to identity theft and maintain the security of their digital lives.