Identity theft in South Florida tops all large U.S. metros, report finds

If you live in South Florida, chances are higher that you will become an identity theft victim than if you lived in any other major U.S. metro region, according to a new report.

That’s not to say anywhere in the U.S. is safe. It’s just worse here, the report by credit card aggregator Upgraded Points revealed this week.

The Miami metro region, which includes all of Miami-Dade, Broward and Palm Beach counties, reported the highest rate of identity theft fraud — 87.3 per 10,000 residents — among 56 metro areas with 1 million or more residents, the Upgraded Points report shows. The 53,201 reports of identity theft from the region in 2022 was 2.8% higher than 2021.

South Florida’s 2022 rate was almost triple 2015’s rate of 31.6 complaints per 10,000, or 18,428 complaints.

As more and more personal and financial information find their way online, thieves have become ever-more skillful at hacking into systems and stealing data, then using it to open accounts and run up huge bills before victims ever realize what happened, the report said.

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“Data breaches are on the rise, both throughout the U.S. and globally,” the report says. “Anyone and everyone is at risk of falling victim to a data breach or cyber attack, and hackers and cybercriminals come up with new ways to steal sensitive information and personal data every day.”

The report draws data from several government data sources to document an alarming increase in identity theft and digital financial crime over the past two decades that has only worsened since the COVID pandemic.

While identity theft reports increased nationwide from roughly 86,000 to more than 650,000 between 2001 and 2019, that number then more than doubled to 1.39 million in 2020 and increased again to 1.43 million in 2021, data compiled for the Federal Trade Commission’s annual Consumer Sentinel Network Data Book shows. In 2022, the number of reports dipped to 1.11 million, for reasons not spelled out by the FTC.

Identity theft rates likely shot up during the pandemic because consumers were forced to stay home and order goods and services through websites and online apps. In addition, thieves worked overtime taking advantage of generous government stimulus offerings like enhanced unemployment benefits, Upgraded Points’ report said.

South Florida’s large metro-topping rate was followed by that of Atlanta (75.2 reports for every 10,000 people) and Houston (63.0).

Orlando reported the fourth-highest identity theft rate — 57 per 10,000 residents. The lowest rate was in Honolulu — 13.2 per 10,000.

Among all metro regions, defined as population areas with 100,000 or more residents, South Florida had the third-highest identity theft rate, behind Tuscaloosa, Alabama (106.1) and Baton Rouge, Louisiana (95.7). Orlando was ninth among metros of all sizes.

Among the 50 U.S. states, only Georgia and Louisiana reported higher identity theft rates than Florida, the data shows.

Overall fraud tracked in the FTC report showed that the overwhelming number of fraudulent exchanges nationwide stemmed from technology-based instruments, led by credit and debit cards, payment apps or services, cryptocurrency, gift cards and bank or wire transfers. The smallest number of fraud reports involved use of cash, checks or money orders, the data shows.

Texts were the most common way fraudsters communicated with their victims, netting $326 million in losses to 321,374 victims. Phone calls, emails, websites or apps and social media contacts followed, while regular mail accounted for just $75 million in losses to 36,758 victims.

Identity theft was the leading source of fraud in Florida, the FTC reported, accounting for 27% of all fraud reports in 2022, compared to 21.5% nationwide.

Forty-three percent of fraud reports came from young adults ages 20 to 29, compared to 23% from seniors ages 70 to 79. But the median loss for the 70- to 79-year-olds was $1,674 while the median loss for the younger group was $548, the FTC reported.

Consumers can help protect themselves and family members from identity theft by following these tips from personal finance website Nerdwallet.com:

• Freeze your credit — All three major credit bureaus — Equifax, Experian and TransUnion — allow consumers to freeze access to their credit records so new credit files cannot be opened. You can unfreeze it when you need to apply for a new loan or apply for a new credit card.

• Guard your Social Security number as best as you can — If you are asked for your number, ask why it’s needed and how it will be used. Don’t carry your Social Security card and shred papers that contain it.

• Be alert to phishing and spoofing — Don’t answer phone calls if the caller ID makes it look like they are coming from government entities or businesses. Don’t click on links in emails, no matter how legitimate they look. If you get an email from a company you do business with, verify what the email says by closing out of the email and logging into your account separately.

• Use strong passwords and add an authentication step — Use a password manager to create and store complex, unique passwords for your accounts. Don’t reuse passwords on multiple accounts. Add an authenticator that sends a text message to your phone with a unique code you have to enter before you can gain access. Don’t rely on security questions that allow easy-to-find answers like your mother’s maiden name.

• Sign up for alerts — Many financial institutions offer to text or email you whenever transactions are made on your account. Use them.

• Watch your mailbox — Stolen mail is an easy way to obtain your personal information. Sign up for Informed Delivery through the U.S. Postal Service to get a preview of what’s due to hit your mailbox later that day. That way you can tell if anything doesn’t show up.

• Use a digital wallet — They allow you to complete credit card transactions by holding your phone near a transaction terminal. The transactions are encrypted and no record of your card remains at the point of purchase.

• Protect your mobile devices — Make sure your phone can only be accessed with a PIN number or fingerprint. If you use a PIN number to open your phone in a public place, always protect it from view. Recent news reports told of thieves striking conversations at bars with the sole goal of seeing their new friend open their phone, then stealing that phone before bolting from bar. By the time the victim can call their bank or credit card company, their accounts are wiped out.

• Check your credit reports regularly — All three credit bureaus are required to provide free access weekly through the end of 2023. But get them through AnnualCreditReport.com, the official government-sanctioned site. Websites with variations on that name are trying to charge you for what you have the right to get for free.

Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071, on Twitter @ronhurtibise or by email at rhurtibise@sunsentinel.com.