Fraudsters took away $ 56 billion from Americans in a year: how to protect against data theft

Last year, identity fraud cost Americans a total of about $ 56 billion. About 49 million consumers became victims, writes CNBC.

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The data comes from the 2021 Identity Fraud Survey published by Javelin Strategy & Research on March 23. The estimated $ 13 billion in losses stemmed from “traditional identity fraud,” in which cybercriminals steal personal information and use it for their own benefit.

But the bulk of the loss last year, $ 43 billion, came from identity theft fraud, in which criminals interact directly with consumers to steal their information through methods such as robotic calls and phishing emails. According to Javelin, the victims of these scammers lost an average of $ 1100.

“Identity fraud has evolved to reflect the steps criminals will take to directly target consumers to steal their personal information,” says John Buzzard, lead fraud and security analyst at Javelin Strategy & Research.

Since the Covid-19 pandemic has changed the way people shop and transfer money, many criminals are targeting digital wallets and payment methods such as Apple Pay and Zelle. According to Javelin, about 18 million people fell victim to scams using these digital payment methods last year.

Here are three common signals to look out for when it comes to identity theft scams.

1. Unsolicited calls or emails

Spoofing technology makes it easier than ever for fraudsters to impersonate anyone, from government agencies like the IRS to your favorite retailer. Most experts recommend that consumers not answer calls from unknown phone numbers, but rather let them use voicemail.

If you do receive a message that you think was legal from a government agency, please call or email them using the contact information listed on their website. Don't answer directly.

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If you answer the call, be aware that US government agencies will not ask you to pay upfront for information or services. In addition, such agencies usually don't call, text, send emails, or contact you on social media to ask for your social security, bank account, or credit card number. If you receive messages asking for this information, it is most likely a scam.

2. High pressure tactics

Another important signal that a call or message is coming from a scammer is when they say they need sensitive information immediately. This is usually a warning sign: if you are being asked to do something immediately or there is supposedly a threat of losing money if immediate action is not taken.

But don't let the rush to buy something or divulge any information.

“Take a break,” recommends Ron Schlecht, managing partner of cybersecurity firm BTB Security.

And make sure you are always up to date with the latest fraud and data breaches tactics. The FTC monitors fraud trends and alerts consumers to what it finds. You can subscribe to distribution of updates by email or visit FTC pagededicated to pandemic-related fraud.

3. Outdated passwords

Many identity theft scams are perpetrated by fraudsters who have obtained login information as a result of a data breach that has occurred over the past several years.

This is why it is so important to regularly check your passwords for hacks. Google suggests free tool password verification, which reveals which accounts have vulnerable or cracked passwords. In addition, sites such as HaveIBeenPwned.comcan help you figure out if your email was involved in a data breach.

“Regularly updating your passwords can help stop unauthorized access to your accounts,” says James Lee, chief operating officer of the Identity Theft Resource Center.

And don't use the same new password all over the place. Lee recommends creating a unique passphrase for each account, such as the title of a song or book.

“It's easy to remember,” he says.

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The longer and more complex you make your password, the more secure it will be. According to Lee, a scammer using encryption tools to hack into your account will likely be able to figure out a six-digit password that uses only letters in a matter of seconds. But cracking a 12-character passphrase that uses letters and numbers will take decades.

Even if you use a secure passphrase when logging in, Lee also recommends enabling two-factor authentication for your accounts. This usually requires not only entering a password, but also verifying your identity by logging in on your phone or entering a code sent to you by email or text message.

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