As consumers rely on digital payments, eCommerce, and other online interactions, concerns over cybercrime, such as identity theft and AI-driven attacks, are on the rise. According to a survey by Nationwide, while 80% of respondents are worried about identity theft, only 16% have identity theft insurance, showing a concerning gap between consumer awareness and action.
The report found that 52% of U.S. consumers experience cyber threats through spam phone calls, and 47% encounter risks via personal email. Furthermore, 41% of respondents have either been victims of identity theft or know someone affected, and 33% received a notification about a data breach involving their personal information in the past year.
“Cybercrime poses a profound threat to U.S. consumers, as criminals’ methods and the technology available to them evolves and improves. Consumers must take these threats seriously and work to safeguard their personal information and finances or insure against the possibility that their information is stolen,” says Sarah Jacobs, Nationwide Vice President of Personal Lines Product Development.
Despite many concerns, consumers remain complacent. As many as 77% of respondents accept identity theft as an unavoidable risk, and 28% admit they have never even searched for more information on cyber protection. This is usually due to misconceptions about the cost and effectiveness of identity theft insurance. For example, 55% believe separate policies are required for each family member, and 49% don’t even understand how identity theft can damage their credit score.
Moreover, the rise of AI-driven cybercrimes, including deepfakes, has intensified consumer fears even more. A staggering 86% of respondents are concerned about AI-assisted identity theft, while 73% are worried about AI-generated deepfakes. The survey showed that 18% of consumers have either been targeted by deepfakes or know someone who has.With the rise of more advanced cybercrime, consumers must prioritise protecting their digital assets.