Study: DC, Delaware Residents Most Vulnerable to Identity Theft & Fraud
With Americans having lost $10 billion to scams last year, the personal-finance website WalletHub today released its report on the States Most Vulnerable to Identity Theft & Fraud, along with expert commentary, to identify where people are most at risk of financial harm.
WalletHub compared the 50 states and the District of Columbia across 14 key metrics. The data set ranges from identity theft complaints per capita to the average loss due to fraud.
| Most Vulnerable States | Least Vulnerable States | ||
| 1. District of Columbia | 42. Idaho | ||
| 2. Delaware | 43. Wisconsin | ||
| 3. California | 44. Utah | ||
| 4. South Dakota | 45. Kentucky | ||
| 5. Florida | 46. Arkansas | ||
| 6. Nevada | 47. Kansas | ||
| 7. Connecticut | 48. Vermont | ||
| 8. Arizona | 49. Montana | ||
| 9. Texas | 50. Rhode Island | ||
| 10. Iowa | 51. West Virginia | ||
Key Stats
- South Dakota has the fewest identity-theft complaints (per 100,000 residents), 5.1 times fewer than in the District of Columbia, the state with the most.
- The District of Columbia has the fewest people arrested for fraud per capita, 20.7 times fewer than in Delaware, the state with the most.
- South Dakota has the fewest fraud complaints (per 100,000 residents), 3.2 times fewer than in the District of Columbia, which has the most.
- Kentucky has the lowest median loss amount due to fraud, 2.1 times lower than in Alaska, the state with the highest.
To view the full report and your state or the District’s rank, please visit:
https://wallethub.com/edu/
Key takeaways and WalletHub commentary are included below in text and video format.
“In an age where we have sensitive data online in a multitude of places, we risk falling victim to identity theft and fraud whenever there’s a data breach. Living in a state with robust legal protections against identity theft and fraud, such as identity theft passports and cybersecurity task forces, can decrease your risk of falling victim to these crimes, though staying vigilant and protecting yourself online is still the most important.”
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“The District of Columbia is alarmingly vulnerable to identity theft and fraud, and one of the big reasons for this is a lack of suitable laws protecting against these crimes. For example, D.C. doesn’t allow parents or guardians to put a security freeze on minors’ credit reports, doesn’t have an identity theft passport program and lacks a cybersecurity task force. Plus, D.C. had 1,885 fraud complaints and 478 identity theft complaints for every 100,000 residents last year, the most in the nation, respectively. It also had the third-highest average loss due to identity theft, at over $20,000.”
– Chip Lupo, WalletHub Analyst
Expert Commentary
What can individuals do to guard against identity theft?
“The most effective way to protect your identity is to freeze your credit with all three major credit bureaus: Experian, TransUnion, and Equifax. This can be done easily and for free. I have taken this step for myself and recommend doing the same for your spouse and all children.”
Ryan T. Wright, MBA, Ph.D. – Senior Associate Dean for Faculty and Research; Professor University of Virginia
“First, be vigilant. Check your bank and credit card statements as soon as you get them and notify your financial institution if you see anything funny. Second, be discerning. We sometimes slip into an unthinking haze when we spend time online, but don’t click on anything you are even a tiny bit suspicious about. Third and finally, don’t forget about sensitive information on paper. If there’s a danger of identity thieves accessing your mail or garbage, take steps like obtaining a lockable mailbox or shredding sensitive documents before putting them in the trash.”
Mark Bartholomew – Professor of Law and Vice Dean for Research and Faculty Development, University at Buffalo School of Law, The State University of New York
What are some common scams and fraud attempts people should be vigilant about?
“I’ve heard about common fraud schemes where scammers pose as authorities, like the police or IRS, often using personal information stolen from data breaches. These scams can be very convincing, featuring seemingly legitimate phone numbers and emails. Even smart people have fallen for them. If you receive a suspicious call or email, hang up or don’t respond; instead, contact your local police or the IRS directly to verify the information.”
Ryan T. Wright, MBA, Ph.D. – Senior Associate Dean for Faculty and Research; Professor University of Virginia
“Text-based scams are quite common: for example, you receive a text asking to make a vet appointment for a dog and when you respond that you are not a vet, they engage you in a back and forth conversation in which the scammer tries to learn more information about you and eventually tries to have you buy something for them (crypto currency, gift cards, etc.). We are also seeing an increased use of deepfakes in scams, such as a faked video or even video call of a family member, co-worker, or your boss. Generally, when something feels strange and you are being rushed to do something, take a breath, step back and confirm through other channels that you are dealing with the real person and not a scammer.”
Florian Schaub – Associate Professor, University of Michigan
Should the Federal government intervene to establish a clear process for victims of identity theft looking to clear their name?
“Yes, identity theft is so rampant that many Americans are struggling to regain their credit and good names. There needs to be a process that may include issuing a new Social Security number, as well as a way to hold credit companies accountable for the data they steward.”
Ryan T. Wright, MBA, Ph.D. – Senior Associate Dean for Faculty and Research; Professor University of Virginia
“Right now, the onus is on victims to go through a lengthy decentralized process to clear their names and fix their credit. Ways to better alert federal agencies to misuses of someone’s personal data are needed. Lawmakers might also consider enacting greater legal penalties for businesses that fail to adequately safeguard personal data. As it stands now, these penalties are usually minimal and determined according to a patchwork of different state-by-state laws.”
Mark Bartholomew – Professor of Law and Vice Dean for Research and Faculty Development, University at Buffalo School of Law, The State University of New York