Technology is part of modern life but with it, there is the growing threat of identity theft. Technology may make life easier for consumers but unfortunately, it’s also a tool for scammers.
A survey by Nationwide shows just how vulnerable consumers are and where the threats are coming from. The survey found that 52% of consumers encounter threats through spam phone calls, while 47% report facing risks via personal email.
The survey also found that 41% of respondents have either been victims of identity theft or know someone who has. Thirty-three percent of respondents said they had been notified that their personal data was involved in a company's data breach within the past year.
"Cybercrime poses a profound threat to U.S. consumers, as criminals' methods and the technology available to them evolves and improves," says Sarah Jacobs, Nationwide vice president of Personal Lines Product Development.
"Identity theft can devastate individuals financially and emotionally, leading to long-lasting repercussions that can hinder personal and professional opportunities. Consumers must take these threats seriously and work to safeguard their personal information and finances or insure against the possibility that their information is stolen."
Biggest threats
Here are five areas where consumers appear to be most vulnerable:
- Phishing and vishing attacks: Scammers send out emails that appear to be from a known business or organization, asking for personal information. This threat has been enhanced by the rapid development of artificial intelligence (AI).
- AI-generated deepfakes: Using AI, scammers can use technology to create realistic fake identities and deepfakes. That makes it increasingly difficult for consumers to really know who they are dealing with.
- Account compromise: Consumers’ online accounts, including social media, email, and financial accounts are increasingly vulnerable. Scammers target these accounts to steal personal information and gain unauthorized access to assets.
- Data breaches: While consumers have limited control over this, large-scale data breaches expose personal information such as names, addresses, and credit card numbers, which can then be used for identity theft. When notified of being exposed in a data breach, it’s important to take action like placing a freeze on credit accounts to add protection.
- Neglect of cybersecurity precautions: Many consumers are aware of these threats but don’t always take them seriously. Important precautions include using strong, unique passwords, enabling two-factor authentication, and regularly monitoring their credit reports.