November 24, 2024

Identity Fraud Statistics For 2025

Cliff Unger

Chief Revenue Officer

Overall trends over time

Identity fraud remains a persistent issue, with variations in reported cases based on geographic regions, economic conditions, and technological advancements.

Here are some key trends observed recently:

Continued growth. Identity fraud cases have intensified by an estimated 12% annually since 2020, and the trend is expected to continue into next year.1

Increase in synthetic identity fraud. Combining real and made-up information has become one of the most widespread fraud techniques, comprising about 30% of all identity fraud cases by 2025. 2

Shift to digital channels. With digital transactions surpassing conventional ones, online identity fraud cases now represent more than 70% of all identity fraud occurrences. 3

Fraud surge in economic downturns. Identity fraud rates often soar during recessions, with spikes of approximately 18% during financially unstable periods.4

Identity theft frequency. An average person experiences an identity theft attempt every 14 seconds in the U.S. 5

More sophisticated attacks. Cyber thieves increasingly use machine learning and AI tools, leading to more convincing – and personalized – scams. 6

Cross-border fraud. A dramatic increase in cross-border identity fraud cases has been reported, primarily due to global digital financial transactions and data accessibility across borders. 7

Financial impact

The financial cost of identity fraud continues to rise, affecting consumers, businesses, and governments. Here are some statistics highlighting the economic burden of identity fraud:

Global cost of identity fraud. In 2025, the global cost of identity fraud is projected to exceed $50 billion. 8

Average financial loss per incident. The average loss per identity theft case in 2025 has reached approximately $1,600, up from $1,300 in 2023. 9

Rising costs to businesses. Companies face mounting fraud prevention costs, with an average annual expense of $4.5 million per organization for large businesses related to fraud prevention. 10

Consumer out-of-pocket losses. Despite preventative tactics, consumer out-of-pocket losses are estimated to reach over $1 billion annually by 2025. 11

Government and healthcare sectors. These areas experience some of the highest fraud costs, with healthcare identity fraud costing over $5 billion each year. 1

Lost wages and productivity. Identity fraud report victims report an average loss of 200 hours when dealing with fraud-related situations. 12

Chargebacks from fraudulent transactions. Financial institutions experience high chargeback rates, leading to an annual loss of about $9 billion across sectors. 13

Breakdown of methods and techniques used by fraudsters and trends over time

Cybercrooks’ techniques in identity fraud schemes have diversified and evolved with the new technologies. Below is a breakdown of some of the most popular methods:

Phishing. Phishing, still the most used method, represents about 40% of identity fraud cases. 1

Credential stuffing. By reusing login details from earlier breaches, cybercriminals successfully gain access to online accounts in 10% of identity fraud cases. 14

SIM swapping. Fraud relating to SIM swaps has seen a 50% boost in the last two years, targeting digital banking and cryptocurrency wallets. 15

Deepfake and synthetic media fraud. Scammers often use AI-generated voices or videos to impersonate people, with one in four surveyed saying they had experienced an AI voice cloning scam or knew someone who had. 16

Dark web data sales. Stolen personal data sold on the dark web represents more than 60% of identity fraud cases, especially social security numbers and health records. 17

Account Takeover Fraud (ATO). The rate of account takeovers – where cyber scammers gain access to accounts and make unauthorized transactions – has increased by 30% annually. 18

Application fraud. Cyber crooks use stolen – or fake – data to open accounts, specifically in financial and government benefit systems.

Analysis of identity fraud victims

Identity fraud does not impact all demographics in the same way. The following data highlights trends among identity fraud victims:

Age. Adults ages 60 and over accounted for 21.6% of identity theft claims in 2022 while younger adults between the ages of 20-39 reported the most incidents due to their active digital presence and online financial transactions increasing their risk for identity theft. 19

Socioeconomic factors. Lower-income households are disproportionately impacted by identity fraud.

Gender disparities. Men tend to experience slightly higher rates of financial identity fraud.

Geographic distribution. Urban areas with higher data usage face more identity fraud incidents.

Online shoppers. Heavy online shoppers are frequent targets, representing nearly 30% of identity fraud cases related to transaction-based fraud. 1

Healthcare identity theft. Seniors are especially vulnerable to healthcare-related identity theft, accounting for an estimated 35% of cases. 12

Increased vulnerability among immigrants. Immigrants face heightened fraud risks due to inexperience with local systems, representing 10% of all fraud cases. 20

Impact of technology on identity fraud and trends over time

Technology has enabled and deterred identity fraud – below are some related statistics:

Biometric security. A survey revealed that the percentage of respondents who trust tech companies to keep biometric data safe dropped from 29% in 2022 to 5% in 2024. 21

Rise of AI-based fraud detection. AI-driven fraud detection has helped businesses lower fraud instances by around 30%. 22

Digital wallet vulnerabilities. Fraud via digital wallets, such as Apple Pay and Google Pay, has risen by 15% annually due to the exploitation of verification gaps. 23

Blockchain technology for fraud prevention. Blockchain has enhanced data security but still needs to be utilized more broadly.

IoT security gaps. Internet of Things (IoT) devices, such as smart home systems, are increasingly targeted, with IoT-based fraud projected to increase 25% by next year. 24

Fraud via social media platforms. Social media scams, like phishing and fake accounts, are rising, accounting for approximately 40% of fraud cases. 25

Legislative and regulatory responses to identity fraud over time

Governments are enacting more legislation to fight identity fraud and protect consumers. Below are some recent developments:

GDPR enforcement

The EU’s GDPR, along with similar global regulations, has resulted in penalties exceeding $5 billion, driving companies to boost data protection.

U.S. Consumer Protection laws

A few states have implemented stringent regulations, such as expanded fraud protection and reporting requirements.

Cybersecurity certification mandates

Some countries require companies in vital industries to maintain cybersecurity certifications.

AI regulation initiatives

New regulations mandate transparency in AI-driven identity verification processes to circumvent misuse.

Right to Be Forgotten

The EU has reinforced rights allowing individuals to request the removal of personal data from companies.

Healthcare-specific regulations

Several countries have fortified protections surrounding healthcare data, as fraud in this area affects vulnerable populations unreasonably.

Implications and impact on businesses

The pervasiveness of identity fraud has major implications for companies globally.

Here are four key trends that highlight the business impact:

1. Increased compliance costs. Companies spend about more yearly than in previous years on compliance related to identity fraud.

2. Reputational damage. Businesses suffering breaches report a drop in brand trust.

3. Customer attrition. Customers impacted by identity fraud are more likely to change providers.

4. Enhanced screening for high-risk transactions. Organizations now require higher scrutiny for transactions over $5,000.

The Bottom Line

Understanding identity fraud statistics is crucial for consumers, property managers and landlords alike, especially as they navigate evolving fraud risks that impact tenant screening, lease agreements, and property security.

The 2025 statistics and trends above highlight the continued evolution and expansion of identity fraud across industries. By integrating knowledge of identity fraud statistics, you can better protect properties, tenants, and overall business integrity.

Sources