Losses due to identity theft are forecast to increase again in 2021 to US $721.3 billion, according to one study.
The study by Aite Group had said in an earlier report that 47% of Americans experienced financial identity theft in 2020. The group’s report, U.S. Identity Theft: The Stark Reality, found that losses from identity theft cases cost US $502.5 billion in 2019 & increased 42% to $712.4 billion in 2020.
The group explained that the huge increase was fueled by the high rate of unemployment identity theft during the pandemic, as increased & extended unemployment benefits made the sector an attractive target for fraudsters. In the forecast for 2021, it narrowed the identity theft definition to include only application fraud, where criminals used a victim’s identity to open a new account of some type, & account takeover, where an account is taken so criminals can steal money or access rewards. Examples of accounts include rewards accounts for airlines, hotels, or merchants; insurance policies; & other accounts.
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