Survey lists US identity theft hotspots

Rhode Island has been identified as the worst state in the U.S. for identity theft, according to a recent study.

The research, conducted by cybersecurity analysts Network Assured, looked into data from the Federal Trade Commission on annual identity theft reports and financial losses, and compared them to state-level data breach statistics from State Attorneys Generals and the Department of Health and Human Services Centers for Medicare and Medicaid Services Office of Civil Rights.

The investigation also compared losses from identity theft to each state’s median income to establish which state’s residents lost the highest share of their income to identity theft.

It was found that per capita identity theft is high in states where per capita data breaches are high. Data breaches are the most common source for the unlawful acquisition of personal data. 

The study also reveals that five out of the ten worst states for identity theft have no legislative measures in place to protect their citizens against data breaches. Experts have advised governments to mandate the reporting of data breaches so that residents can find out and take action when their personal data has been compromised, in order to reduce risks of further identity theft.

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Residents of Florida lost the highest share of median income to identity theft, at 2.74%. The study also found that the global health crisis caused a spike in identity theft cases in all U.S. states, as criminals used stolen personal data to fraudulently apply for unemployment insurance.

The findings underscore the need for governments and corporations to cooperate in the fight against cybercrime and identity theft. With greater transparency in data breach reporting and stronger laws to criminalise identity theft, analysts insist that reducing the losses from identity theft is possible.

Maryland, a state that has recorded a high number of data breaches per capita, has seen far fewer than the expected number of ID theft cases, thanks to strong data breach reporting and data privacy laws in the state. 

Governments in the US have also been advised to impose harsher penalties for identity theft and put programs in place to assist victims with recovery. The study found these measures to be rare, existing only in a small number of states.

Corporate data breaches are where personal data is most often stolen, and government departments, such as those responsible for unemployment insurance, are often where stolen data becomes the theft of an identity. 

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