Driven by stolen personal data and new artificial intelligence (AI) tools, identity crimes will surge in the coming year, the Identity Theft Resource Center (ITRC) said on Wednesday, outlining its predictions for 2024.
“We believe there will be new levels of identity crimes due to the record number of data breaches in 2023,” Eva Velasquez, the president and CEO of the ITRC, said. “As we look towards 2024, we expect to see much discussion around AI-driven identity scams.”
With widespread identity theft, the ITRC also predicts an increased use of biometric identity verification tools.
Reflecting on 2023, the ITRC said government benefits fraud and new accounts opened in victims’ names were the most commonly reported identity theft-related crimes. The report also highlights the devastating impact of romance scams in 2023, with a “significant rise in the number of victims who lost six figures.”
Surge in AI-Driven Identity Theft Scams
Thanks to “an unprecedented number of data breaches in 2023,” the ITRC predicts identity crimes, like impersonation and synthetic fraud, will reach record levels in 2024. While impersonation involves posing as someone else, synthetic fraud combines real and fake information to create new identities, making it hard to detect as there is no real victim to report the crime.
The availability of stolen personal data — on dark web markets, for example — and the capabilities of new large language models (LLM) will drive identity theft scams. The ITRC said this may result in “AI-created, highly convincing “medical records” that could be submitted to insurance carriers.”
Cybersecurity experts have since warned that AI tools will enhance the capabilities of scammers. In March, Europol said fraudulent documents used for phishing and online fraud “can be created faster, much more authentically, and at significantly increased scale” using AI tools like ChatGPT.
The ITRC also warned that the “risk of AI-driven identity scams that impact large numbers of people will be overstated, while the potential for targeted attacks on single or small groups of individuals will be underestimated.”
More Predictions for 2024
The ITRC predicts that the rise in identity theft will lead to “more adoption of biometric-based identity verification (not recognition) tools to prove people are who they claim to be.” However, the organization expects lawmakers and the public to “push back” on biometric verification due to a “lack of understanding.”
The ITRC also predicts that more U.S. States will adopt comprehensive privacy and security laws in 2024, but Congress will not follow the same path.
While the ITRC’s latest Consumer Impact Report shows that up to 16% of identity theft victims contemplate suicide, identity theft “is too often classified as not creating trauma for which a victim would require support,” the ITRC said. The organization predicts that “assistance providers will struggle to meet the emotional recovery needs of victims” in the coming year.
“Regardless of what happens in 2024, we will help those who need it,” Velasquez said.
There are many ways to protect yourself from identity theft, including using secure passwords, monitoring your medical and financial accounts, and using a top-rated VPN, like NordVPN, to safeguard your privacy. For more safety tips, read our comprehensive guide detailing how to protect yourself from identity theft.
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