Real-time identity theft: How scammers steal your data and ways to stay safe

As technology advances, identity theft has become a real-time threat, with scammers using sophisticated methods to exploit personal data for financial gain. In 2023, Americans lost over $10 billion to identity theft and related fraud, according to the Federal Trade Commission (FTC). The FTC received over a million complaints of identity theft and over 2.6 million complaints of related fraud during the same period.

Cybersecurity experts are increasingly concerned about the rise of advanced scams targeting unsuspecting individuals. The U.S. government emphasizes the importance of vigilance and proactive measures to protect personal information.

Phishing and dark web fraud

Phishing, a common identity theft tactic, involves scammers posing as trusted sources to trick people into sharing sensitive information. Phishing has impacted millions of Americans and caused significant financial losses. A recent example is the VA-EZ.com text scam, where scammers prompt victims to visit a fake website and enter financial details like credit card numbers, bank accounts, and Social Security numbers, which are then exploited.

The demand for personal data on the dark web has fueled financial fraud. One frequently traded item is a “fullz” package—a complete set of someone’s data, including Social Security numbers, financial records, and other identifiers.

Often sold cheaply, these packages allow cybercriminals to assume victims’ identities, access accounts, create fake profiles, and apply for credit. A few years ago, reports showed fullz being sold for as little as $30 to $40, which led government agencies to issue warnings and work on tighter regulations to limit the sale of personal data on the dark web.

Facial recognition and wearable tech

As facial recognition technology and wearable devices like smart glasses become more popular, new privacy risks emerge. With these tools, threat actors can monitor and identify people in crowded areas by comparing them to photos from social media or other public sources. This technology, if misused, could enable real-time tracking of individuals, giving scammers unprecedented access to their target’s identity.

This real-time data collection becomes even more dangerous when paired with stolen personal data. Scammers who use fullz kits can exploit this combination to create highly targeted scams. By having access to a victim’s personal information and tracking them in real time, scammers could approach their target pretending to be someone they know, making it easier to manipulate them into revealing even more sensitive information.

Artificial intelligence amplifying scams

AI has transformed the landscape of identity fraud, making it easier for scammers to create complex and convincing scams. AI-powered tools allow scammers to analyze identity data quickly, making it possible to target victims in real time. One notable example of AI in scams is the use of deepfakes, where scammers use AI to mimic voices or appearances. With deepfakes, scammers can create realistic but fake messages, phone calls, or video calls, making their deception more convincing.

AI can also automate the collection and analysis of data from various sources, such as social media profiles, public databases, and breached information. This automation allows cybercriminals to compile detailed profiles of victims in less time, which they can then use to target individuals with customized scams that are more likely to succeed. AI can even analyze a person’s online behavior to predict the types of scams they might fall for, making phishing attacks even more effective.

Real-Time identity monitoring

To counter these advanced threats, cybersecurity experts stress the importance of real-time identity monitoring. Traditional security measures like strong passwords, two-factor authentication, and password managers are no longer enough. Real-time monitoring, driven by AI, can detect unusual activities related to an individual’s online presence and alert them to potential threats as they happen.

One company taking a proactive approach is Constella, which uses AI and continuous monitoring to protect users from these new threats. Constella’s system goes beyond traditional dark web monitoring by also tracking data across the surface web, allowing for a more comprehensive defense against potential scams and data leaks. By providing real-time alerts when sensitive data is exposed, Constella helps users respond quickly and reduce their risk.

Dark web monitoring and ScamGPT

Dark web monitoring is an essential tool in the fight against identity theft. It continuously scans for exposed personal information, such as Social Security numbers, email addresses, and financial details, alerting users when their data appears on the dark web. This early warning system helps individuals take steps to secure their accounts before their data is used maliciously.

Constella’s ScamGPT, a unique educational tool, offers an innovative way to help users recognize and avoid phishing scams. ScamGPT creates simulated phishing attacks using the user’s own information, allowing them to see how they could be targeted in a scam. This tool helps users understand the tactics scammers might use, making them more aware of potential threats and better equipped to protect themselves.

Strengthening security practices

In addition to advanced monitoring tools, cybersecurity experts recommend several practices to enhance security. Users should avoid clicking on unverified links or downloading attachments from unknown senders. It’s also wise to use strong and unique passwords for each account, as well as two-factor authentication to add an extra layer of security. Avoiding personal information in passwords and using a password manager can also help prevent unauthorized access.

Recent U.S. legislation highlights the importance of these protective steps. While still pending, the Improving Digital Identity Act of 2023 aims to strengthen digital identity verification across organizations, businesses, and government agencies, reducing vulnerabilities that cybercriminals often exploit.

Also, if approved, the Improving Social Security’s Service to Victims of Identity Theft Act, passed by the House this year, would provide dedicated support to victims whose Social Security numbers have been misused, making it easier for them to address identity theft issues.

Nonetheless, users are advised to be cautious when downloading software or applications. Carefully review the installation process and terms of service to avoid unknowingly granting access to malicious programs. Installing browser-based content blockers like AdGuard can help prevent exposure to harmful pop-ups, viruses, and other unwanted content. These practices, combined with new legislation, support a multi-layered approach to better defend against modern identity threats.

Proactive measures

Take proactive measures to secure your personal data and protect against potential identity theft. Regularly monitoring credit reports is essential, as this can help detect unauthorized activity early on. It’s also crucial to create backups of important files and regularly test them for recoverability in case of a security breach. Avoid connecting external storage devices that may carry malware to prevent it from spreading to other systems.

Phishing attacks and identity theft can have severe consequences, including financial loss and damage to credit scores. By staying informed about emerging threats and using advanced identity protection tools, individuals can reduce their risk and better protect their sensitive information.

The VA-EZ.com text scam serves as a reminder of the importance of vigilance. Victims of this scam were prompted to share their personal information on a fake website, demonstrating how quickly scammers can gain access to private data. With a mix of government support, personal awareness, and advanced tools, people can build stronger defenses against identity theft.