Identity Theft Reports by State and Metropolitan Area

Identity Theft Reports by State and Metropolitan Area

Below is a statistical data analysis conducted by IPX 1031® for 2021.

As taxpayers prepare for tax season, it's essential to be vigilant for any signs of suspicious activity to avoid becoming a victim of tax identity theft.

According to IPX 1031's analysis of the 2021 Federal Trade Commission report, there were more than 1.4 million new reports of identity theft across the country. The Federal Trade Commission (FTC) indicates, of all the types of identity theft, tax-related identity theft is most common during tax filing season. In fact, since the pandemic, tax-related identity theft reports have risen by 45% compared to pre-pandemic years.

Identity theft happens in various ways; a fraudster often uses personal information to open fraudulent financial accounts, make fraudulent purchases, or file a fraudulent tax return. During tax season, the Internal Revenue Service (IRS) often reminds everyone to protect their financial information to avoid identity theft, fraud, and scams.

"Tax-related identity theft has "evolved into a major enterprise by well-funded, technically sophisticated national and international criminal syndicates, according to the IRS."

IPX 1031 analyzed 2021 FTC identity theft reports in each state and major metro area across the country to determine where identity theft is the most common.

States with the Most Identity Theft Reports?

While no state is immune from identity theft, some states have much higher volumes of identity theft reports than others. According to the FTC report, the smallest state in the nation, Rhode Island, had reported the most identity theft cases per capita (2,857 per 100,000 residents). Since 2017, Rhode Island has averaged 9,265 identity theft reports annually. To put this into perspective, this equates to 876 per 100,000, according to the FTC..

Rhode Island, as we already know, is the number 1 state. The other top 10 states with the most identity theft reports are;

2) Kansas

3) Illinois

4) Louisiana

5) Georgia

6) Nevada

7) Colorado

8) New York

9) Delaware

10) Florida

Increase in Identity Theft During the Pandemic

Unfortunately, tax-related identity theft further uprooted Americans' lives, both personally and financially, during the Covid-19 pandemic. Identity theft reports skyrocketed throughout 2020 and 2021. Below are some of the most significant increases during 2020 and 2021;

Kansas increased by 94.75%

Rhode Island increased by 94.66%

Kansas increased by 94.75%

Illinois increased by 85.39%

Some states were privileged to have the lowest increase in identity theft. These states include South Dakota (33.79%), Michigan (36.93%), and Connecticut (38.19%).

Metro Areas with the Most Identity Theft Reports

In addition to analyzing identity theft reports, state IPX 1031 also looked at which metro areas had the most identity theft.

According to the Federal Trade Commission, Rhode Island was not only the top state in the nation for identity theft but also had the number one metro area in the country. In 2021, Providence, Rhode Island, had 1,981 identity theft reports per 100,000 residents.

Kansas also has a high incidence of identity theft, with the number 2 metro area, Lawrence, Kansas, experiencing 1,779 reports per 100,000 residents. Larence was followed closely by Topeka (1,548) and Wichita (1,378). The next highest was Lafayette, Louisiana, with 1,212 reports per 100,000.

Other notable major metro areas were;

Chicago (975 per 100,000)

Houston (817 per 100,000)

Atlanta (850 per 100,000)

Miami (839 per 100,000).

This tax season, whether you've already filed your taxes, are preparing to file, or awaiting your tax return, it's essential to spot the signs of identity theft.

Several security initiatives were introduced in 2021. Since 2021 in an attempt to protect data when filing taxes, has provided the option to request an Identity Protection PIN (IP PIN). To date, the IRS has protected "$26 billion in fraudulent refunds by preventing identity theft refunds."

The IRS suggests more needs to be done to prevent identity theft. The IRS recommends using encryption tax preparation software, virus protection software, strong passwords, and vehemently safeguarding your Social Security number. These are all essential steps to protect your identity and data during tax season.

Report Methodology

Using data from the Federal Trade Commission's Consumer Sentinel Network, IPX 1031 analyzed identity theft reported in every state and calculated the data per capita (per 100,000 residents). Data for the top 25 metropolitan areas were further analyzed for this report. Data from the years 2017, 2018, 2019, 2020, and 2021 was analyzed for this report. Some state population estimates were based on the 2019 U.S. Census Bureau estimates.

Sources:
Federal Trade Commission: Consumer Sentinel Network

U.S. Census Bureau
Internal Revenue Service
Media

Complete Credit & Consumer Identity Protection, also available (not included)

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