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In 2023, the ID theft market is projected to grow significantly, driven by the increasing reliance on digital platforms and the proliferation of data breaches.
A Javelin Strategy & Research report found that losses involving identity fraud scams involving direct contact with victims totaled $28 billion. These scams affected 27 million consumers in the United States.
The report notes that while the overall number of identity theft victims has decreased since 2021, the financial losses per victim have increased, indicating that identity theft and other types of cyberattacks are becoming more sophisticated and targeted.
Read on to explore the latest trends and growth drivers in the ID theft market.
ID Theft Protection Services Market Size, Growth, & Trends Statistics (Editor’s Pick)
- The market size of the US’s Identity Theft Protection Services industry grew at an annual rate of 2.1% between 2018 and 2023. (IBIS World)
- North America will dominate the market share for identity theft protection services. (Fortune Business Insights)
- Credit card fraud is one of the main drivers of the identity theft protection services market. (Maximize Market Research)
- Bank fraud is expected to experience a growth of 5.3% between 2022 and 2023. (ACFE)
- The US’s Identity Theft Protection Services industry grew faster than the economy. (McAfee)
ID Theft Protection Services Market Size, Growth, & Trends Statistics
1. The global identity theft protection services market accounts for 5% of the worldwide cybersecurity market.
According to a study from Fact.MR, identity theft protection services, comprises 5% of the global cybersecurity market. The digitalization of businesses has contributed to the fast-growing financial crime of identity theft.
Fraudsters who obtain sensitive personal information, bank account numbers, and other personal information drive demand for theft protection tools.
2. The Identity Theft Protection Services market will experience a compound annual growth rate (CAGR) of 13.7% from 2023 to 2028.
In 2021, the identity theft protection services market reached $10.07 billion globally. With a CAGR of 13.7%, the market is expected to grow from $11.39 billion to $27.90 billion in 2029. The COVID-19 pandemic has significantly impacted the global demand for identity theft protection services.
3. The US’s Identity Theft Protection Services industry’s market grew 2.1% annually between 2018 and 2023.
The COVID-19 pandemic has pushed people back inside their homes and required people to work remotely. Because the world is more digitalized than ever, identity theft has become a more rampant problem. This shift in how people worked also called for more protection and caused the market’s growth.
4. The market size of the US’s Identity Theft Protection Services industry increased faster than the economy overall.
The prevalence of internet usage has opened up more avenues for scammers to access and trade personal data on the dark web. Various online businesses, such as social media platforms and others, often store users’ data for diverse purposes, thereby creating multiple opportunities for theft.
5. Bank fraud is expected to grow 5.3% in 2022-2023.
The Association of Certified Fraud Examiners (ACFE) report in 2022 found that fraud causes companies to lose up to 5% of their revenue annually. This adds up to a global estimate of US$4.7 trillion.
During the pandemic, bankers noticed increased fraud due to new opportunities created by the situation.
Unfortunately, history shows that the upcoming economic downturn in 2023 is likely to result in more fraud affecting both businesses and consumers.
6. The COVID-19 pandemic has positively impacted the growth of the identity protection services market.
As a result of the pandemic, on-site personnel has shifted to remote work-from-home arrangements, which has heightened the risk of cyberattacks.
Sharing personal and corporate information using personal and work devices and home networks has made it easier for hackers to penetrate the organization’s security framework. This situation led to a surge in coronavirus-related fraud directed toward workers, clients, and consumers.
7. The Identity Theft market is projected to grow from $11.39 billion in 2022 to $27.90 billion by 2029.
The rise of communication and the digitization of business operations have escalated the threat of cyberattacks such as phishing or smishing, introducing new risks to organizations.
With identity theft being the fastest-growing form of financial crime, around 10 million Americans fall victim to this malicious act annually. Security.org reports that in 2019-2020, 67% of U.S. adults experienced identity theft.
8. North America is expected to dominate the identity theft protection services market share.
In 2022, North America dominated the market with a 30% share, specifically in the e-commerce industry. It controls the market share for identity theft protection services and is experiencing rapid growth due to the creation of new online accounts.
The US government has taken recent measures to combat identity theft, including implementing the BuySecure project, a specialized task force aimed at preventing identity theft.
The market size of the Identity Theft Protection Services industry is expected to increase by 2.5% in 2023.
9. Credit card fraud is a leading driver of the identity theft protection services market.
Credit card fraud holds the largest market share within the fraudulent activity category. However, the bank fraud category is projected to experience the fastest growth rate throughout the forecast period due to the speed and convenience of banking transactions.
Con artists have been taking advantage of the growing costs of utilities such as power and phone bills to acquire personal and financial information from customers.
10. Internet-enabled transactions are huge drivers of the need for identity theft protection services.
Online financial transactions are increasing rapidly. Because of online transactions’ convenience, people often choose it over visiting a bank and standing in long queues. However, technology-driven financial transactions have become a prime target for cyber attackers.
11. There is an increase in attacks on public sector institutions, including government agencies and non-profit organizations.
With the increased reliance on computer networks and electronic data for daily operations, government agencies are now transferring and storing more personal and financial data online.
Among various crimes, identity theft is among the fastest-growing in the government sector. Consequently, there is likely to be a surge in demand for services to counter fraudulent activities in government and public entities.
In conclusion, the ID theft market is projected to grow significantly in 2023, driven by the increasing reliance on digital platforms and the proliferation of data breaches.
While the overall number of identity theft victims has decreased since 2021, the financial losses per victim have increased, indicating that identity theft is becoming more sophisticated and targeted.
As such, there is an urgent need to combat identity theft, including implementing specialized task forces to prevent identity theft and strengthening cybersecurity measures in public sector institutions, including government agencies and non-profit organizations.