Each year fraud grows more complex, targeted, and difficult to detect. The IdentityIQ 2024 Fraud Trends Report with Predictions for 2025 reveals a staggering surge in scams fueled by traditional tactics and evolving technology such as artificial intelligence (AI). For businesses, understanding these trends is critical – not only to defend against fraud but to help safeguard clients’ trust and security.
IDIQ recently released its newest report, under the flagship IdentityIQ® brand and built on proprietary member data, on the key fraud trends found last year with predictions for this year to help consumers and businesses stay ahead of scams.
Click here to download the report.
Utility Account Fraud: Costing Customers and Companies
Utility account fraud exploded by more than 1,033% in 2024 compared to the previous year, marking one of the fastest-growing types of identity theft. Fraudsters typically use stolen personal information to open utility services in someone else’s name. Or, they impersonate utility providers and threaten disconnection unless an immediate payment is made.
What This Means for Businesses: If you serve customers who use personal data to access services – whether utilities, telecom, or other services – this trend should be on your radar. Fraudsters are now bypassing consumers and targeting service providers directly through fake accounts, payment fraud, or account takeovers.
It’s important to help educate clients about verifying payment requests and only contact organizations through official channels.
Student Loan Scams: Preying on Financial Stress
Student loan-related fraud jumped by almost 500% in 2024 compared to the previous year. With the resumption of student loan payments post-pandemic, scammers used confusion and misinformation to launch fake forgiveness programs, phishing emails, and identity theft scams.
What This Means for Businesses: Fraudsters exploit communications to steal data, pretending to be businesses and using corporate logos to mimic real businesses.
Businesses can help educate clients about known scams and how to verify communication to help avoid these scams.
The Comeback of Physical Document Theft
While digital threats are rising, physical document theft saw a 46% increase last year compared to the previous year. Scammers are stealing documents from mailboxes and dumpsters for utility bills, credit card offers, tax forms, and other documents that can be used for identity theft or account fraud.
What This Means for Businesses: If your business sends sensitive documents by mail or handles client paperwork, your clients are at risk. You can encourage clients to go paperless to help stop the theft of important physical documents.
It’s also important to train employees on safe document handling and disposal practices, including the shredding of documents with sensitive client data.
Click here to download the report.
The Rise of AI-Powered Scams
From deepfake videos to AI-generated phishing emails and automated robocalls, criminals are using advancing technology to scale and personalize their attacks. Deepfake videos can impersonate loved ones, celebrities, and politicians. AI-powered phishing emails can be customized to online behavior. Robo-scammers can use cloned voices and chatbots to steal personal data.
What This Means for Businesses: AI scams are sophisticated, and they can be targeting your business and your clients. Make sure clients know the importance of contacting your business through official channels. Conducting AI threat and cybersecurity awareness training for your staff also is an essential part of protecting businesses and clients.
Proactive Identity & Credit Monitoring Is Essential
Across all fraud types, the IdentityIQ report highlights a common theme: the importance of identity and credit monitoring. Early detection through continuous monitoring of financial and identity information can help significantly reduces the potential impact and cost of fraud.
Business owners are in a unique position to help protect themselves and their clients.
Businesses can implement cybersecurity training and best practices as well be proactive in preparing for a data breach. IDIQ offers comprehensive data breach protection services that can help businesses proactively prepare for cyber threats and data breaches.
Learn more about data breach protection with IDIQ.
Partnering with IDIQ also offers businesses the opportunity to extend our industry-leading services to their clients, including identity theft protection, credit monitoring, and more. These services can be a powerful value-add that not only enhances client trust but can reduce bring in commission.
Bottom Line
Fraud isn’t just a consumer issue – it can negatively affect businesses and their clients. Staying informed and vigilant is the first step to helping prevent fraud. Business owners who are prepared can set themselves apart.
From a data breach response plan to helping restore customer trust through identity and credit monitoring, IDIQ can help protect your business and your customers in the event of a data breach and fraud. Get started today to protect your business and clients.
