$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
identity theft protection scam
A company sells an identity theft protection plan that provides little or no actual monitoring, while collecting sensitive personal data that increases the customer's risk.
“insurance scam”
↑ 100%Key indicators
Usually targetsData breach victims
Often hitsFreelancers and contractors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Scammers capitalize on data breach news by contacting potential victims offering protection.
2
The service collects personal data — SSN, date of birth, financial accounts — for its own use.
3
The monitoring provided is minimal or nonexistent, while the collected data may be sold or misused.
What to do first
Use the free credit monitoring offered by breached companies or annualcreditreport.com.
Related terms
fake ID protectioncredit monitoring scamidentity insurance fraudInsurance scamsEmailRisingData breach victimsOlder adultsOnline shoppersFreelancers and contractorsSmall business ownersPayroll, HR, and finance teamsUnited StatesCanadaUnited Kingdomfake ID protectioncredit monitoring scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Steven, 35, a data breach victims, encountered what appeared to be a legitimate insurance scams situation while using Email. Scammers capitalize on data breach news by contacting potential victims offering protection.
Step 2
What happened next was calculated: The service collects personal data — SSN, date of birth, financial accounts — for its own use.
Step 3
The pressure escalated quickly: The monitoring provided is minimal or nonexistent, while the collected data may be sold or misused.
The outcome
Steven realized something was wrong when service requires your social security number upfront but has no verifiable security certifications. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Use the free credit monitoring offered by breached companies or annualcreditreport.com. Steven's experience shows why service requires your social security number upfront but has no verifiable security certifications and company cold-calls after a publicized data breach offering urgent protection are the clearest early warning signs.
How to identify it
- Service requires your Social Security number upfront but has no verifiable security certifications
- Company cold-calls after a publicized data breach offering urgent protection
- Plan guarantees full reimbursement for any identity theft — a promise no legitimate service makes
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Use the free credit monitoring offered by breached companies or annualcreditreport.com.
- ✓Place a free fraud alert or credit freeze directly with the three major credit bureaus.
- ✓Verify any identity protection service through the BBB and your state attorney general.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Keep the full sender address, domain, attachments, and—if possible—the raw email headers.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FTC recommends free credit freezes over paid identity protection services for most consumers.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Use the free credit monitoring offered by breached companies or annualcreditreport.com.
- ✓Place a free fraud alert or credit freeze directly with the three major credit bureaus.
- ✓Verify any identity protection service through the BBB and your state attorney general.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FTC recommends free credit freezes over paid identity protection services for most consumers.
FTC Consumer Sentinel 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Data breach victims, Older adults, Online shoppers
Geographic concentration
United States, Canada, United Kingdom
Primary channel
Email — Insurance scams
Why this group is vulnerable
Data breach victims are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FTC recommends free credit freezes over paid identity protection services for most consumers.
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about identity theft protection scam
How does the identity theft protection scam work?+
Scammers capitalize on data breach news by contacting potential victims offering protection. The service collects personal data — SSN, date of birth, financial accounts — for its own use. The monitoring provided is minimal or nonexistent, while the collected data may be sold or misused.
What are the warning signs of identity theft protection scam?+
Service requires your Social Security number upfront but has no verifiable security certifications Company cold-calls after a publicized data breach offering urgent protection Plan guarantees full reimbursement for any identity theft — a promise no legitimate service makes
What should I do if I encounter identity theft protection scam?+
Use the free credit monitoring offered by breached companies or annualcreditreport.com. Place a free fraud alert or credit freeze directly with the three major credit bureaus. Verify any identity protection service through the BBB and your state attorney general.
Who is most at risk for identity theft protection scam?+
This scam primarily targets Data breach victims, Older adults, Online shoppers. It is most commonly reported in United States, Canada, United Kingdom and typically appears on Email.
Is identity theft protection scam on the rise?+
identity theft protection scam is currently on the rise with growing reports. It has been reported across US, CA, UK. Last updated 2026-04-04.
Recent reports
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.