Identity Fraud Cost Americans $47 Billion in 2024, Study Finds

The Big Picture

Americans lost an estimated $47 billion to identity fraud and scams in 2024, up from $43 billion in 2023. The figures come from a new report by Javelin Strategy & Research and co-sponsored by AARP. Based on a nationwide survey of more than 5,000 adults, the study reveals that identity fraud is not only rising but evolving in sophistication.

Fraud and Scams: How Criminals Are Stealing Billions

According to the study, traditional identity fraud accounted for $27 billion of the total losses — an increase of $4 billion over 2023 — and affected 18 million Americans. An additional $20 billion was lost to scams that manipulate victims into giving away personal or financial information.

“Many scams are deliberately designed to exploit older adults,” said Jennifer Pitt, senior fraud analyst at Javelin and the report’s lead author, quoted by AARP. She explained that criminals often view older people as having more savings, being overly trusting, and less comfortable with technology.

Technology Moves Fast — Security Struggles to Keep Up

The study highlights that technological innovation has outpaced digital security infrastructure, leaving consumers exposed. It criticizes current U.S. privacy laws as insufficient and notes that many organizations continue to share or sell personal data without consumer consent.

“Information is more of a hot commodity than just money because information can be used,” said Pitt. “You can sell information to get money or use it to open new fraudulent accounts or take over existing accounts,” quoted by AARP.

Takeover Tactics and the Rise of Text-Based Scams

As the study shows, account takeover fraud rose sharply in 2024, reaching $15.6 billion in losses — up from $12.7 billion in 2023. New-account fraud, where criminals use stolen identities to create financial accounts, hit $6.2 billion, up from $5.3 billion the previous year.

Fraudsters are increasingly using text messages as the first point of contact. According to the study, 54% of victims were contacted by text — up from 49% in 2023 — signaling a shift in criminal strategies toward more personal communication channels.

Older Adults Face Greater Financial Risk

The study confirms that older adults continue to lose more money than younger individuals when targeted by scams. Data from the Federal Trade Commission shows that victims in their 70s reported median losses of $1,000, while those in their 20s lost around $417. The report explains this disparity by citing seniors’ generally higher financial assets and lower digital fluency.

Mass Data Breaches Fuel the Fire

In addition to scams and fraud, the study warns that identity theft often occurs through mass data breaches. In 2024, there were 3,158 reported breaches, including high-profile incidents at New York University — where the personal data of over 3 million applicants was leaked — and at Community Health Center in Connecticut, which exposed over 1 million patient records.

How to Protect Yourself

To guard against identity fraud, the study recommends a combination of vigilance and digital hygiene. Key steps include:

• Verify before trusting: Always confirm unsolicited messages or links — even from people you know.
• Freeze your credit: This prevents new accounts from being opened in your name.
• Use strong, unique passwords: Avoid reusing passwords and consider a password manager.
• Enable multifactor authentication: Add an extra layer of protection for your logins.
• Use VPNs on public Wi-Fi: Encrypt your data while browsing on shared networks.
• Lock your devices: PINs and biometrics help protect sensitive data if your phone or laptop is lost or stolen.

Where to Report and Get Help

If you become a victim of identity fraud, you should contact your local law enforcement and report it to the FBI Internet Crime Complaint Center (IC3). Victims can also call the AARP Fraud Watch Network Helpline at 877-908-3360 for guidance and support. Source

The Bottom Line

The study offers a clear warning: identity fraud is not only growing in scope, but also in complexity. As fraudsters adapt to new technologies, consumers must remain alert and proactive. The most effective protection starts with awareness, strong digital habits, and swift reporting when fraud is suspected.

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