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COVID-19 Identity Crimes on the Rise

The number of COVID-19 identity crimes are expected to rise in 2021. The Identity Theft Resource Center (ITRC) has new data that shows an increase in identity crime victims being targeted multiple times. The rate was 21% in 2018 and increased to 28% in 2019 before the pandemic. 


With the stress of COVID, identity theft is not the top focus of people right now and victim resources are getting harder to research. The U.S. Department of Justice funds allocated for crime victim services has dropped from $3.7 billion to $1.9 billion since 2018. New fraud cases and identity crime victims are likely to increase with the pandemic-related benefits and stimulus payments due early this year. 

2020 was a difficult time for many people and it continues to affect them today. Some have lost their jobs and others had to close their businesses. There have been millions of state unemployment benefit-related identity theft cases that have been detected across the U.S. since March 2020. The ITRC receives less than 20 inquires regarding unemployment benefits in a year on average but in 2020 they received more than 700 unemployment benefits fraud victims inquiring for help. A sharp increases in scams was seen also. This has given criminals countless opportunities to trick people with phishing scams, charity scams, healthcare scams and work-from-home scams. 


What Will 2021 Bring?


Identity crimes are expected to impact victims well into 2021. Many victims may not even realize that their identity information was misused until they received their IRS Form 1099 for non-wage income. The research by the ITRC shows a significant increase in identity crime victims being victimized a second time, even before the rise of fraud, scams, and identity crimes in 2020. An analysis of the post-pandemic shows an even greater spike. 


The ITRC and other private-sector researchers show that cybercriminals looking for profit are using consumer’s and employee’s bad security habits, as well as the changing work environment, to attack businesses more often. Resources for cybersecurity training and education along with identity-related crime victim assistants are lessening. 

The U.S. Department of Justice (DOJ) funds allocated for all crime victim services has dropped from $3.7 billion in 2018 to $1.9 billion. Discredtionary DOJ grants awarded to victim services organizations has dropped from $311 million in 2019 to $144 million in 2020. Funding for programs that support victims of identity crimes, compromises, cybercrime, scams, and fraud have been reduce to $0. According to the cybersecurity firm Coveware, ransomware payments have grown on average from less than $10,000 per incident in 2018 to $233,000 as of the third quarter of 2020. Some large enterprises are reportedly paying ransoms over $1 million. The most common cause of ransomware attacks is stolen credentials to access a business system or network remotely. 


Research by the ITRC that will be published in May 2021 shows that there is an increase in identity crime victims being targeted multiple times. It could be even worse after the rise in crimes committed during COVID. 


Data shows that the COVID identity crimes will continue in 2021. More victims will suffer from trauma of a second, or even third crime. Getting the fraud resolved can be a daunting process and some victims will have trouble meeting their basic needs or find a job because they will not pass a background check until the fraud is resolved. Winning the battle to protect ourselves from cybercriminals will require us to devote more resources toward assisting victims and devote more time and attention to educating consumers and employees of their need to be cyber-aware and vigilant. 


If you believe that your information maybe have been compromised, contact us on our page for resources and help. We can direct you on how to solve this issue and guide you through a potential lawsuit.