AI Will Stop More Identity Theft

Technology is a tool. Or a weapon.

If you need proof, look no further than the latest Debt.com survey. Just in time for National Identity Theft Prevention and Awareness Month, we polled 1,000 adults about their opinions and experiences with the most common crime in the world.

This was our sixth annual ID theft survey, and every year, the results have gotten worse.

For instance, nearly 8 in 10 (78%) told us they were ID theft victims in 2025. Last year, it was just over 4 in 10 (43%). This most common crime shows no signs of peaking.

But what about artificial intelligence? What role will AI play in combatting – or contributing to – ID theft?

Last year, exactly 6 in 10 said they thought AI “will increase ID theft crimes.” This year, it’s over 9 in 10.

You might be wondering, “Why does Debt.com care about ID theft?” Good question. The answer is a sad one: This year, over half (51%) said “identity theft caused them to go into debt.” Last year, it was only 14%.

AI helps and hurts

In my decade at Debt.com, I’ve noticed that technology cuts both ways when it comes to personal debt. A popular example is Buy Now Pay Later.

It made it much easier to make major purchases without paying steep interest. But soon enough you could use BNPL to order dinner through DoorDash. BNPL providers make their money through steep fees that kick in when you miss a single payment, and when Americans started using BNPL for everyday purchases, it became very easy to forget at least one.

AI is trending in the same direction.

Banks and other companies have already deployed AI to recognize ID theft trends and either stop it before it happens or quickly isolate it…

• Real-time monitoring – AI can quickly crunch huge chunks of data, identifying irregular transactions or spikes in low-activity accounts.
• Pattern recognition – AI can find connections between accounts and detect behavior that might be fraudulent.
• Enhanced accuracy – AI tools certainly aren’t flawless, as recent examples of “hallucinations” have proven. But when it comes to monitoring possible financial fraud, it’s amazingly accurate – up to 99%. That’s much better than any of us humans can achieve.

The problem is, the ID theft scams that get past the AI defending us is often created AI – and it’s very persuasive….

• Deepfakes – Thieves use AI to impersonate you. Deepfakes are hyper-realistic video and voice recordings that can be used to steal your identity and access your bank accounts. Robocalls –
• Robocalls – There’s nothing new about robocalls, but AI can persuade you to reveal personal information through realistic and sympathetic “representatives” who actually don’t exist.
• Password hacking – If your password is your child’s name, your pet’s name, or your birthplace, AI can quickly try them all.

How to protect yourself against the bad AI

Thankfully, you don’t need AI to protect yourself against AI. You’re still smarter than AI is.

For example, use a password manager that generates passwords of random numbers and letters. Don’t give out your personal information over the phone, and if a bank or business requires it, offer to call them back.

To protect yourself against all kinds of ID theft, Debt.com has compiled this simple yet thorough guide. If there’s any good news about controlling the spread of ID theft, it’s that our survey shows 77% of respondents use a credit monitoring a credit monitoring or identity theft protection service. Three years ago, in 2022, it was only 61%.