Identity theft is becoming one of the fastest-growing financial crimes in America, according to a new study from Georgia-based firm Bader Law. The report reveals that millions of consumers are facing mounting risks as fraud schemes evolve, with losses reaching into the billions.
Drawing from newly released federal data, the study shows that more than one million identity theft complaints were filed in 2023 alone. Credit card fraud continues to dominate the landscape, accounting for more than 416,000 cases—roughly 40% of all reports. The financial cost is staggering: victims reported more than $10 billion in losses, with the median individual loss coming in at $500. Bader Law notes that these numbers are likely conservative, as many people never realize their identities have been compromised until much later.
The analysis also highlights concerning geographic trends. Georgia reported more than 48,000 cases in 2023, making it the state with the highest rate of identity theft—approximately 457 reports per 100,000 residents. Florida followed closely behind at 438 per 100,000. According to experts, large, urbanized states with high levels of online commerce may create more opportunities for cybercriminals to exploit vulnerable systems. The findings suggest that location and infrastructure play a meaningful role in how fraud spreads.
While credit card fraud is the most visible issue, other categories are quickly gaining ground. Loan and lease fraud—where criminals use stolen details to open unauthorized credit lines or secure rentals—generated nearly 150,000 reports. Equally troubling is the rise in government document and benefits fraud, which surged by more than 80% year-over-year to exceed 96,000 incidents. These included falsified tax returns, fake unemployment claims, and fraudulent benefit applications. Employment and tax-related scams also proved persistent, with nearly 90,000 complaints nationwide.
The impact of identity theft goes far beyond dollars lost. Bader Law’s research emphasizes that older adults, though representing a smaller share of overall victims, often lose significantly more money when they are targeted. In addition, recovery is a lengthy and stressful process. Victims frequently spend months repairing credit, disputing charges, and monitoring financial accounts. Many also report lasting emotional distress, as the violation of personal information can feel deeply unsettling.
To address these growing threats, the report calls for urgent improvements in both consumer awareness and institutional safeguards. Recommendations include stronger verification practices for financial transactions, expanded use of fraud detection technology, and higher cybersecurity standards across businesses and government agencies. Public education campaigns are also seen as critical in helping people recognize phishing attempts, manage passwords securely, and check their credit activity regularly.
As criminals adapt with increasingly sophisticated tactics—such as large-scale data breaches and synthetic identity creation—the risks are expected to grow. Bader Law warns that without stronger defenses at both the individual and systemic level, identity theft will continue to impose devastating costs on American households and the wider economy.
The report ultimately frames identity theft not just as a financial crime but as a societal challenge, one that requires collaboration between consumers, policymakers, and businesses to prevent further harm.
