Americans lost over $10 billion to scams last year, with the District of Columbia ranked as the most vulnerable to identity theft and fraud, according to a report by WalletHub.
The analysis reviewed all 50 states and D.C., evaluating 14 factors such as identity theft complaints per capita and average losses due to fraud.
The District ranked first across multiple metrics, including identity theft complaints and fraud complaints per capita, with 1,885 and 478 complaints per 100,000 residents, respectively. The average loss from identity theft in D.C. surpassed $20,000, the third-highest in the nation.
Experts said the District’s vulnerabilities are its insufficient protections against fraud. D.C. lacks a cybersecurity task force and specific laws addressing spyware. It also does not offer an identity theft passport program, which aids victims in recovering their stolen identities.
Delaware ranked second, fueled by the highest rate of fraud arrests per capita and e-commerce fraud linked to shipping and billing addresses within the state. The state reported 1,500 fraud complaints and 359 identity theft complaints per 100,000 residents last year. Delaware also had an average identity theft loss of $9,600. Despite these figures, WalletHub concluded that Delaware has yet to enact laws addressing phishing or spyware, exposing residents to cybercriminal activities.
California placed third, with identity theft losses averaging more than $11,000. Fraud complaints in California were 1,027 per 100,000 residents, while identity theft complaints reached 304 per 100,000. E-commerce fraud remains a significant issue, with California ranking fifth for shipping and billing address scams. Although California has introduced measures to combat identity theft, gaps exist, such as the absence of an identity theft passport program.
To mitigate risks, experts recommend strengthening email security, using strong, unique passwords, and enabling two-factor authentication. Monitoring credit activity with real-time alerts can help detect potential fraud. Staying vigilant online by avoiding unknown links and files and using a VPN to obscure personal data also reduces exposure to scammers.
“While state laws play a role, protecting yourself online is the most important factor. Scammers constantly evolve, so staying informed and cautious is crucial,” said Chip Lupo, a WalletHub analyst.
Anguish Chakraburtty, a Microsoft research fellow, explained the importance of heightened awareness and planning to protect from theft.
“Emerging scams, such as AI-driven voice impersonation fraud, demand new levels of awareness. Establish personal verification systems with loved ones to safeguard against these sophisticated attacks,” said Chakraburtty.
As fraudsters develop increasingly advanced schemes, the Federal Trade Commission has advised Americans to stay alert, particularly to scams involving impersonation, investments, and cryptocurrency.
“The best defense is a combination of individual vigilance and strong legal frameworks to deter malicious actors,” Chakraburtty said.
Source: Published without changes from Washington Informer Newspaper
