The Rising Toll: Identity Theft Losses in the US and Canada

Identity theft continues to be a significant financial threat to consumers in both the United States and Canada, with losses reaching staggering amounts in recent years. Let's take a closer look at the alarming statistics and trends in both countries.

United States

In the United States, identity theft has become an increasingly costly problem for consumers. According to a report by Javelin Strategy & Research, Americans lost a total of $43 billion to identity fraud in 2023[1]. This figure includes $23 billion lost to traditional identity fraud, affecting approximately 15 million people[1].

The breakdown of these losses is particularly concerning:

- Account takeover fraud resulted in nearly $13 billion in losses in 2023, up from $11 billion in 2022[1].

- New-account fraud reached $5.3 billion, compared to $3.9 billion in 2022[1].

It's important to note that these figures likely underestimate the true cost of identity fraud, as many cases go unreported due to stigma and embarrassment[1].

Canada

While the scale of losses in Canada is smaller than in the US, the trend is equally alarming. In 2023, a record 42,000 Canadians lost $569 million to fraud, according to the Canadian Anti-Fraud Centre[4]. This represents a significant increase from previous years.

Even more concerning is that these reported losses may only be the tip of the iceberg. The Canadian Anti-Fraud Centre estimates that only 5 to 10% of people actually report fraud[5]. This suggests that the true financial impact of identity theft and fraud in Canada could be much higher.

Trends and Concerns

Several trends are worth noting:

1. Increasing sophistication: Criminals are employing more advanced techniques to access personal information, often through online platforms and social media[1].

2. Underreporting: Both countries struggle with underreporting of identity theft cases, making it difficult to gauge the full extent of the problem[1][5].

3. Digital transformation: The rapid digitization of financial services has created new opportunities for fraudsters to exploit[5].

4. Cryptocurrency fraud: In both countries, investment scams, particularly those involving cryptocurrency, have become a major source of losses[3][5].

5. Automotive Data: 91% of cars on the road in the USA are collecting personally identifiable information, and the cybersecurity attack vectors for criminals is growing rapidly [6]. Vehicle manufacturer delete functions have been proven to not actually delete data.

Protecting Yourself

Given these alarming statistics, it's crucial for consumers to take steps to protect themselves:

- Use strong, unique passwords for all online accounts

- Delete data from your vehicles periodically

- Never connect your mobile devices to rental cars

- Insist that automotive dealers delete your data when you trade in a vehicle

- Be cautious about sharing personal information online or over the phone

- Regularly monitor your credit reports and financial statements

- Consider freezing your credit file to prevent unauthorized accounts from being opened in your name

By staying vigilant and informed, we can work together to reduce the financial impact of identity theft and fraud in both the United States and Canada.

Citations:

[1] https://www.aarp.org/money/scams-fraud/info-2024/identity-fraud-report.html

[2] https://www.ftc.gov/news-events/news/press-releases/2024/02/nationwide-fraud-losses-top-10-billion-2023-ftc-steps-efforts-protect-public

[3] https://www.fool.com/the-ascent/research/identity-theft-credit-card-fraud-statistics/

[4] https://option-consommateurs.org/en/communique-barometre-2024/

[5] https://www.rcmp-grc.gc.ca/en/news/2023/fraud-prevention-month-2023-fraud-losses-canada-reach-historic-level

[6] https://www.vindskar.com/insights/texas-legislature-house-select-committee-on-emerging-technology-cyber-threats-in-transportation