Better Business Bureau Raises Concerns About AI-Fueled Identity Theft

Americans face a surge in identity theft schemes as scammers increasingly rely on artificial intelligence to exploit unsuspecting individuals.

Key Takeaways

The Better Business Bureau has received 16,000+ identity theft complaints in the past three years, with AI technology enhancing fraud methods.
Account takeover fraud increased 76% in 2024, with mobile telephone hijacking accounting for over half of cases.
The FBI reports consumers lost over $125 million to identity theft in 2023, with 840,000 identity fraud cases reported by the FTC in 2024.
Experts recommend credit freezes, multi-factor authentication, regular credit monitoring, and secure internet connections to protect personal information.
SIM swap fraud has skyrocketed with a shocking 1,055% increase as scammers exploit advanced technology.

AI-Powered Identity Theft Raises Concerns

Identity theft is evolving at an alarming rate with artificial intelligence providing criminals sophisticated new tools to target American consumers. The Better Business Bureau (BBB) is warning the public as scammers leverage AI technology to create convincing fake documentation, bypass verification systems, and operate at a scale previously impossible. This technological shift has contributed to staggering financial losses, with FBI data confirming that consumers lost over $125 million to identity theft in 2023 alone. The Federal Trade Commission (FTC) has documented more than 840,000 identity fraud cases across the United States in 2024, reflecting the growing crisis.

Fraud prevention service Cifas reports a continuous rise in identity theft, explicitly identifying artificial intelligence as a key factor “fuelling [the] identity fraud increase.” The statistics paint a troubling picture: account takeover cases jumped by 76% in 2024, with mobile telephone account hijacking representing more than half of these incidents. Even more concerning is the 1,055% increase in SIM swap fraud, where criminals transfer a victim’s phone number to a device they control, bypassing security measures tied to phone verification.

“The terrifying part is with AI, it’s so much easier for these things to appear legitimate,” Julie Wheeler, Western Virginia BBB CEO said of the scams impacting consumers.

INTERNET SAFETY: More people are falling victim to identity theft linked to AI, the dark web, and data breaches, according to the Better Business Bureau. https://t.co/acnGr7HtcJ

— Local 3 News (@Local3News) April 24, 2025

Dark Web Marketplaces Fuel Identity Theft Economy

Data breaches have created a thriving underground economy where personal information is bought and sold across various internet layers. The BBB warns that stolen information is actively traded on the surface web, deep web, and especially the dark web, where comprehensive identity packages can be purchased by criminals. This ecosystem provides bad actors with everything needed to impersonate victims, from social security numbers to banking details. The scope of information available to criminals has expanded dramatically as major corporate data breaches expose millions of Americans’ personal data.

The sophistication of these schemes often means victims remain unaware until significant damage has occurred. Michele Mason of the BBB notes, “We’re finding that what happens frequently is that someone gets a hold of your social security number, they’re actually using that to open up credit card accounts and start charging, which you won’t know about until you actually get a bill in your name.”

Protecting Yourself: Essential Security Measures

The BBB recommends a two-pronged approach to protect against identity theft threats: safeguarding personal data and actively monitoring for suspicious activity. Security experts advise regularly checking your credit reports and being selective about who you share sensitive information with. Enabling multi-factor authentication on all important accounts adds a critical layer of security that can block many common attack methods, even if passwords are compromised.

Americans are entitled to free weekly credit reports from all three major bureaus through AnnualCreditReport.com. Secure internet connections, particularly when handling sensitive information, can prevent data interception. Experts also recommend using unique, complex passwords for different accounts and maintaining updated security software on all devices. Those who suspect they’ve been victimized can reach out to the FTC, BBB, or the FBI.