Identity theft refers to the illicit acquisition and utilization of an individual's private identifying information, typically for financial benefit, and it constitutes an escalating global issue. The sophistication and expertise of cybercriminals have escalated in their intrusions that are putting identities at risk.

Cybercriminals are employing artificial intelligence (AI) technologies to steal identities by infiltrating and examining victim networks. To deceive or undermine cyber-defense systems and applications, their preferred techniques generally include self-modifying malware and automated phishing attempts that mimic real individuals. Their targeted assaults are now more lethal, more strategic, and swifter as a consequence.

The Identity Theft Resource Center’s 2024 report indicated that victim notices increased by 312% from 419 million notices in 2023 to 1,728,519,397 in 2024. Last year, the financial services sector, dominated by commercial banks and insurance, experienced the highest number of breaches, followed by healthcare (the most targeted sector from 2018 to 2024), professional services, manufacturing, and technology. Identity Theft Resource Center’s 2024 Annual Data Breach Report Reveals Near-Record Number of Compromises and Victim Notices - ITRC

The rationale behind the heightened incidence of identity fraud is evident. As our connectivity increases, so do our visibility and susceptibility to individuals seeking to compromise our accounts and appropriate our identities. The surface threat landscape has significantly broadened because of cellphones, wearables, and the Internet of Things, resulting in numerous phishing targets.

Criminal hacking organizations and fraudsters frequently utilize social media to facilitate their phishing and malware assaults. They can acquire substantial information, including birthdates and personal histories, from social media posts to customize their attacks. The advancement of machine learning algorithms and artificial intelligence has rendered social engineering operations significantly more complex, enabling the identification of weaknesses and the automation of phishing and ransomware attacks on a large scale. Upon successfully obtaining identities, hackers frequently disseminate or vend them on the dark web to other criminals.

Spoofing occurs when one individual impersonates another to gain access to confidential data, accounts, or information. It is frequently executed using an email or SMS that may impersonate a preferred vendor, such as Amazon or Microsoft, or even your financial institution or workplace. When one succumbs to a spoof, spyware and ransomware are frequently downloaded.

Historically, spoofs were easily identifiable due to typographical errors, subpar visuals, and implausible claims. This has evolved due to advancements in technology and the sophistication of threat actors who possess the ability to deceive nearly anyone. Spoofing can occur through emails, websites, SMS messages, and the falsification of IP addresses. Spear phishing frequently targets corporate leaders through spoofing techniques.

Cybercriminals frequently employ business email compromise (BEC) fraud schemes to deceive victims by impersonating a trustworthy individual or organization. Malefactors can generate emails via generative AI that closely mimics the lexicon, style, and tone of the individual or entity they are impersonating, hence complicating the distinction between fraudulent emails and authentic ones.

Generative AI can rapidly produce new material by utilizing text, images, and music as inputs through deep neural network machine learning algorithms. Moreover, generative AI models may produce remarkably realistic text, audio, and video content in addition to images. Numerous deepfake AI-generated audio files are sufficiently realistic, enabling an attacker to effectively impersonate organizations and CEOs and access bank account information.

Threat actors specializing in deepfakes are intensifying their activities utilizing cost-effective face swap software, virtual cameras, and mobile emulators. These tools are readily available and can be utilized to produce very persuasive synthesized media.

An example of deepfake fraud recently occurred in Hong Kong. A clerk employed by a multinational corporation in Hong Kong donated HK$200 million of the company's funds to con artists after being duped into attending a video conference in which every other participant was an AI-generated deepfake.

The other participants in the video chat were scammers' creations, posing as the worker's coworkers despite the fact that the clerk was the only real person there. The other participants were fictitious accounts based on actual online conferences that had previously occurred.

"The informant [clerk] received an invitation from [the fraudster] to a video conference with numerous participants. The informant made 15 transactions to five local bank accounts as directed, totaling HK$200 million, because the individuals in the video conference appeared to be the actual persons." I believe the fraudster downloaded videos in advance and then used artificial intelligence to add fake voices to use in the video conference." acting senior superintendent Baron Chan said. Deepfake colleagues trick HK clerk into paying HK$200m - RTHK

The most effective methods to prevent and detect spoofs and compromises involve maintaining vigilance. Refrain from clicking on any links in emails or websites without confirming the authenticity of the sender. Additionally, install antivirus software and AI enabled spoof detection software, and consider utilizing packet filtering features offered by various suppliers.

Agentic AI can be employed to combat identity theft in cybersecurity. It oversees identity configurations in real-time, identifies discrepancies from access checks, and autonomously rectifies these deviations. Conventional authentication techniques may fail to identify behavior-based identity threats.

Additionally, ensure that your most sensitive and valuable data is encrypted to prevent easy transfer in the event of spoofing.

Initially, every enterprise, regardless of size, and consumer should implement a risk management plan. The plan's fundamentals must encompass the identification of essential assets for protection, potential threats, designated corporate responsibilities for mitigation, and the implementation of techniques for incident response and mitigation.

Effective risk management security protocols commence with the implementation of a functional, tested plan to mitigate threats. This may encompass encryption, sophisticated firewalls, segregation of sensitive information, and threat intelligence surveillance. It necessitates the development of a framework to evaluate situational awareness, synchronize policies and training, enhance technological integration and privileged access control, encourage information sharing, construct mitigation capabilities, and sustain cyber resilience during crises.

In any cyber risk management framework, cyber hygiene is a crucial corporate necessity. Effective cyber hygiene can avert breaches and frequently enable the detection of an intruder in the act. Here are six recommended specific practices for organizations and individuals to mitigate identity theft:

1) This is a crucial measure in thwarting identity theft, as it elevates the difficulty of password theft by necessitating two or three procedures to access information. Two-factor authentication can be useful, but it has been breached. Multifactor authentication that adds additional measures is prudent. Additionally, blockchain, and biometrics such as facial recognition, iris scanning, or fingerprinting can be employed to enhance security measures.

2 Hackers are proficient at deciphering passwords, particularly when they possess knowledge of your previous residences (street names), birth dates, and preferred phrases through social engineering on social media platforms. Utilizing robust passwords and altering them periodically can further complicate the endeavors of hackers. Consider utilizing a password manager if you access multiple websites.

3) If you are a company, This will help ensure that only authorized individuals and designated roles within your business may access the emergence of new threats.

4) , refraining from any other usage. Organizations must ensure the separation and backup of their sensitive data. Additionally, contemplate employing encryption software for sensitive data that needs protection. And soon quantum-resistant encryption will likely be necessary to stay safer.

5) It is advisable to Numerous credible monitoring businesses offer account alerts that are highly beneficial in the pursuit of awareness. The sooner you identify fraud, the more manageable the complications related to identity theft become.

6) Ultimately, if a breach occurs, ensure you have a strategy to promptly contact your essential vendors and relationships. Timely remediation can be the difference for a small or medium company surviving the consequences of going out of business. If the breach is particularly severe, please notify law enforcement authorities, since it may be associated with a broader criminal operation of which they should be aware.

Addressing identity-targeted cybersecurity threats in the context of generative and agentic artificial intelligence during the cyber era can be challenging and requires a comprehensive strategic approach. We are seeing a novel and more complex set of physical security and cybersecurity concerns that provide substantial risks to individuals, locations, and commercial networks. All entities are susceptible, necessitating the implementation of a comprehensive and strategic approach to managing security risks in order to mitigate threats.