Top 5 States Most Vulnerable to Identity Theft and Fraud

The States Where Identity Theft and Fraud Are Hitting the Hardest

Significant data breaches have compromised many Americans’ personal information in recent years. In 2023, US consumers reported $10 billion in fraud, $1 billion more than the previous year. In 2024, big companies like AT&T, Microsoft, Change Healthcare, and Ticketmaster have experienced major breaches.

Scammers come up with new tricks each year, but the old ones are still common like tech support scams or fake IRS calls. Some people are more likely to become victims of fraud than others, and to find out who is most at risk, researchers looked at some important factors across all 50 states and Washington, DC. They followed how often people report identity theft and how much money they lose due to fraud.

1. Washington DC’s vulnerability to identity theft and fraud

Surprisingly, Washington, D.C., where the nation’s government is based, is one of the most at-risk places for identity theft and fraud. One major reason comes from the lack of strong laws to protect against this type of crime. DC, for example, doesn’t let parents or guardians freeze their kids’ credit reports, a measure that would stop fraudsters from easily opening accounts in their names. Moreover, even with so much complaining, the city doesn’t have a program to support victims in proving their identity is stolen, and there’s no cybersecurity task force or law to stop spyware from infecting computers.

DC was in first place in 2023 when it came to fraud complaints—1885 for every 100,000 people and 478 identity theft complaints for every 100,000 residents. The loss from identity theft was over $20,000.

2. Delaware

The second for being vulnerable to identity theft and fraud is Delaware, with the highest number of fraud-related arrests per capita. The state is also a leader in online fraud, especially in the e-commerce area, with many complaints being linked to shipping and billing addresses.

Following Washington DC’s case, Delaware doesn’t have a law to protect against fraud. For example, there are no laws against phishing and spyware, making it easier for cybercriminals and scammers to target residents with online scams.

2023 counted 1500 fraud complaints and 359 identity theft complaints for every 100,000 people, placing Delaware 5th and 6th in the nation, respectively. The state has the seventh-highest average loss from identity theft, with residents reporting losses of more than $9,600 on average.

3. California

The state of California ranks 3rd in the US for being vulnerable to identity theft and fraud. What makes it rank so high is the significant financial loss its residents experience. People seem to lose over $11,000 on average to identity theft, and it ranks third with the highest median loss from fraud, at $670.

California had 304/100,000 residents’ identity theft complaints in 2023 and 1,027/100,000 residents fraud complaints. The state has the 5th highest rate of fraud via e-commerce, with many cases linked to shipping and billing addresses.

Unlike the other 2 states we mentioned, California has strong laws to protect against identity theft and fraud, but there is still room for improvement. The state doesn’t have an identity theft passport program to support victims in proving their identity after being stolen.

4. South Dakota

Raking 4th for vulnerability to identity theft and fraud, South Dakota “gained” its place due to the high number of fraud complaints. Residents constantly report a significant amount of fraud and identity theft situations.

2023 headed high with 1,132 per 100,000 residents’ fraud complaints and 297 per 100,000 residents identity theft. When it comes to this factor, South Dakota doesn’t rank the highest in the country, being placed 22nd and 19th in the nation, respectively. However, this significant risk accumulated with the high average loss places the state in the top after putting more factors together.

South Dakota faces a loss of over $8,000 on average, and even if they have taken steps to protect residents, stronger measures are still required, particularly in e-commerce and online scams.

5. Florida—a hotspot for identity theft and fraud

Ranking 5th for a good reason, Florida has a high number of fraud-related incidents and significant average loss from identity theft,

Residents are frequent targets for scams, especially in areas like e-commerce and credit card fraud. In 2023, Florida had 432 identity theft complaints for 100,000 residents and 1,141 fraud complaints per 100,000 residents. The state of Florida also has a high rate of fraud related to e-commerce with cases linked to skipping and billing addresses.

The financial loss average is over $10,000 due to identity theft, contributing to the state’s overall exposure. Lawmakers here mandated that address fraud be covered, and there are protections against various types of scams, but the state still faces challenges with rising fraud rates from phishing schemes and online transactions.

Some states are ranking higher in identity theft and fraud than others due to high scam rates, weak laws, and significant financial losses. Understanding these risks can help residents take steps to protect themselves from becoming the next target.

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