Colin Mc Hugo

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Colin Mc Hugo
Security Engineer Manager & CEO at Quantum Infinite Solutions Group Ltd.
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Identity theft spikes amid pandemic

February 4, 2021

The US Federal Commerce Fee obtained 1.4 million stories of id theft final 12 months, double the quantity from 2019

The variety of reported circumstances of id theft in america doubled in 2020 year-on-year, the Federal Commerce Fee (FTC) has mentioned. In a blogpost marking the beginning of Identification Theft Consciousness Week, the FTC mentioned that it obtained roughly 1.4 million stories of id theft final 12 months. The surge in circumstances is especially pushed by cybercriminals concentrating on individuals who have been financially affected by the COVID-19 pandemic.

“2020’s greatest surge in id theft stories to the FTC associated to the nationwide dip in employment. After the federal government expanded unemployment advantages to individuals left jobless by the pandemic, cybercriminals filed unemployment claims utilizing different individuals’s private info,” mentioned Seena Gressin, an legal professional on the company’s Division of Client & Enterprise Schooling.

Final 12 months, the fee obtained 394,280 stories of presidency advantages fraud, a steep improve from the 12,900 stories in 2019. Most circumstances of id theft concerned fraudsters submitting unemployment advantages within the victims’ names.

RELATED READING: Simple steps to protect yourself against identity theft

The recipients of unemployment advantages weren’t the one victims of id thieves. The FTC additionally obtained stories of id theft from individuals whose enterprise or private knowledge was utilized by fraudsters to take out loans from government-sponsored small enterprise mortgage packages. In 2020, stories of fraud regarding private or enterprise loans greater than doubled in comparison with the earlier 12 months, rising from 43,920 to 99,650 stories. Nevertheless, the fee was fast to level out that not all new stories had been related to the federal government aid effort, though they did account for a sizeable chunk of the surge in reported circumstances.

Identification theft was additionally utilized by cybercriminals as a way to achieve entry to federal stimulus funds issued by america Inner Income Service (IRS) to eligible US residents. The circumstances had been reported to the FTC as incidents of tax id theft. The variety of stories greater than tripled year-on-year, with the FTC receiving 89,390 stories in 2020, which was up from the 27,450 within the earlier 12 months.

“Whereas most of the stories involved different kinds of tax id theft, the report numbers started to swell when distribution of the stimulus funds started,” Gressin wrote.

Tax id theft has confirmed to be a perennial challenge that the IRS has been dealing particularly throughout tax season, together with as a result of cybercriminals committing tax refund fraud by filing taxes in the victim’s name. In December 2020, the IRS expanded its identity protection program to all eligible U.S. tax-payers in an effort to fight varied tax scams.

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