Report Finds Surge In Identity Fraud, Warns Of More AI-Driven Scams Ahead

Identity fraud is on the rise, and a new report from financial intelligence company IDIQ shows just how dramatic the increase has been over the past year, with surging utility account fraud and student loan scams.

According to report released by IDIQs flagship credit and identity theft monitoring platform IdentityIQ, there was a staggering 1,033% increase in utility account fraud in 2024, along with a 500% spike in student loan scams.

The report also highlights a 46% rise in identity theft linked to the loss or theft of personal documents, suggesting that criminals are expanding the ways they access and exploit consumer information.

Perhaps most concerning is the reports forecast for the future. IDIQ warns that fraudsters are increasingly turning to artificial intelligence to enhance their schemes. Deepfake technology, AI-powered phishing emails, and automated “robo-scammers” are among the growing threats that could make scams harder to detect and even more convincing.

“As AI technology becomes more sophisticated, scammers are finding new ways to exploit it,” said Michael Scheumack, Chief Marketing and Innovation Officer at IDIQ. “Its more critical than ever for consumers to stay informed, stay on top of their credit and personal information, and take proactive security measures.”

In response to the rising threats, IDIQ outlined several steps individuals can take to protect themselves, including monitoring credit reports regularly to catch suspicious activity early. 

Consumers should verify all requests for sensitive information or payments by contacting the company or agency directly through official channels. Another red flag to watch out for are urgent requests, especially those that pressure consumers to make quick financial decisions or share personal data.

The report underscores a rapidly evolving fraud landscape, where traditional scams are being replaced — or supplemented — by high-tech tactics that take advantage of new tools and shifting consumer behavior. As more personal data becomes accessible online, experts say staying vigilant is no longer optional — it’s essential.