California Vulnerable to Identity Theft, Fraud

California 2nd Most Vulnerable State to Identity Theft & Fraud – WalletHub Study

With the recent AT&T data breach impacting nearly 86 million customer accounts, including over 44 million Social Security numbers, the personal-finance company WalletHub released its report on 2025’s States Most Vulnerable to Identity Theft & Fraud.

It does not bode well for Californians.

To determine where Americans are most susceptible to fraud and identity theft, WalletHub compared the 50 states and the District of Columbia across 15 key metrics. The data set ranges from theft complaints per capita to the average loss amount due to fraud.

California’s Vulnerability to Identity Theft & Fraud (1=Most Vulnerable; 25=Avg.):

Overall rank for California: 2nd

• 8th – Theft Complaints per Capita
• 4th – Avg. Loss Amount Due to Online Identity Theft
• 18th – Fraud & Other Complaints per Capita
• 5th – Median Loss Amount Due to Fraud
• 18th – State Security-Freeze Laws for Minors’ Credit Reports
• 1st – Identity-Theft Passport Program
• 4th – Avg. Loss Amount Through Cryptocurrency Schemes

For the full report, please visit: https://wallethub.com/edu/states-where-identity-theft-and-fraud-are-worst/17549

“In an age where we have sensitive data online in a multitude of places, we risk falling victim to identity theft and fraud whenever there’s a data breach, according to Chris Lupo, WalletHub analyst. Living in a state with robust legal protections against identity theft and fraud, such as identity theft passports and cybersecurity task forces, can decrease your risk of falling victim to these crimes, though staying vigilant and protecting yourself online is still the most important.

“Florida is notably vulnerable to identity theft and fraud, and one of the big reasons for this is a lack of suitable laws protecting against these crimes,” Lupo writes. “For example, Florida doesn’t have an identity theft passport program or laws against spyware on computers. Plus, Florida had 528 identity theft complaints and 2,163 fraud complaints for every 100,000 residents last year, the highest and second-highest rates in the nation, respectively. It also had the fifth-highest median loss due to fraud, at over $500.”

Expert Commentary

What can individuals do to guard against identity theft?

“Perpetrators of identity theft have various motives. The most common motive is to use someone else’s identity to apply for loans/mortgage, credit cards, etc. One of the most effective ways to protect yourself against this type of identity theft is to freeze your credit with all three major credit bureaus. This service is free, and you can easily temporarily unfreeze (or ‘thaw’) your credit online whenever you need to apply for new credit. Freezing your credit will prevent anyone from accessing your credit report, so it will effectively block anyone, including identity thieves, from opening new accounts in your name. I began doing this practice a few years ago after one of my email accounts was hacked. In addition, regularly monitoring your credit reports and purchasing identity theft insurance can provide extra layers of protection.”
— Chih-Chen Lee, Ph.D., CPA, CFE – Professor, Northern Illinois University

“The biggest thing people can do is to pay attention. Check your bank and credit cards regularly. Pay attention to your spending habits. Thieves may try to ‘test’ your awareness by making a few small purchases. So be diligent in monitoring your financial activity online. Once you do believe you’ve been compromised, you should start by putting a hold on your accounts. You don’t have to close them immediately, most financial service providers will offer a lock down until you clear things up. Some other basic strategies for protection are using multi-factor authentication, avoiding repeat passwords.”
— Dr. Philip Kim, D.Sc., CISSP, CISA – Associate Professor, Walsh University
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