Identity theft is one of the fastest-growing crimes in America, and New York is emerging as a hotspot for this activity due to its dense population and large number of financial institutions. In New York, thousands of people each year incur millions of dollars in losses as a result of identity theft.

While these numbers are alarming, the good news is there are steps you can take to reduce the risk and catch identity theft early. To help you protect yourself and your loved ones from this vicious crime, this comprehensive guide on New York identity theft will help you learn how identity thieves operate, how to spot the warning signs, and what your rights are under state law.

New York Identity Theft Statistics

Unfortunately, identity theft is more common in New York than in the majority of other states in the U.S. According to the Federal Trade Commission (FTC), there were 39,500 cases of identity theft in New York reported from January to September of 2023. The following table shows New York identity theft report cases by type during this period:

Type of Identity Fraud	Total Identity Fraud Reports
Credit card fraud	19,115
Other identity theft	8,954
Loan or lease fraud	5,240
Bank fraud	4,805
Phone or utility fraud	3,179
Government documents or benefits fraud	2,510
Employment or tax-related fraud	2,462

New Yorkers experience various other forms of identity theft. As seen from the statistics above, credit card fraud in New York surpasses other categories by a significant margin. Although instances of loan or lease fraud, bank fraud, and other forms of identity theft are also common, they occur less frequently.

These numbers also show that individuals committing these crimes target a range of sectors, including finance, employment, and government benefits—an indication that there are vulnerabilities across platforms and systems.

Most Common Types of Identity Theft in New York

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To fully comprehend identity theft risks, check out the techniques that criminals employ to get their hands on the personal information of New York residents:

Technique	Description
Phishing and spear phishing attacks	Cybercriminals send emails designed to trick individuals into revealing sensitive information. Spear phishing works the same way but targets specific people or organizations
Skimming	Thieves use special devices to capture card information from individuals using ATMs or gas station pumps
Company data breaches	Hackers infiltrate databases, exposing substantial amounts of consumer information
Malware and ransomware infections	Harmful software infiltrates a user’s device, either directly stealing data or encrypting it for ransom
Mail theft or dumpster diving	Offenders steal information by intercepting mail or rummaging through trash for discarded documents containing sensitive data
Account hijacking	Intruders exploit stolen credentials to gain access to personal or financial online accounts
Physical theft	Direct theft of items like wallets or purses grants identity criminals physical access to financial information
Social engineering	Identity thieves find exploitable information that’s been recklessly shared on social media platforms

What Are the Warning Signs of Identity Theft?

Considering how often identity theft occurs and how big its impact can be, you should keep an eye out for the following warning signs:

• Unusual activity on your bank account or credit card—Any suspicious charges or withdrawals may indicate someone has gotten hold of your financial accounts
• Inexplicable rejections of legitimate applications—Getting rejected for loan or credit card applications that you should qualify for could mean someone has damaged your credit profile by opening accounts in your name and failing to make payments
• Bills for accounts you didn’t open/services you didn’t subscribe to—Receiving bills for accounts or services that you don’t recognize may indicate that someone has applied for these using your personal information

Where To Go if You Are a Victim of Identity Theft in New York

If you suspect that you or a member of your family have become targets or victims of identity theft in New York, you should report the situation to various organizations to safeguard your identity. Here are four primary types of institutions you should contact immediately:

1. Federal Trade Commission (FTC)—Submit a report by visiting IdentityTheft.gov or calling the toll-free number 1-877-382-4357. FTC offers a plan of action for victims of identity theft, which includes guidance on protecting yourself and recovering from the impact
2. Local police department—File a report with your local police department in New York. This creates a record of identity theft, which is vital for disputing fraudulent charges and rectifying any damage to your credit history
3. Credit reporting agencies—Notify all three credit reporting agencies and request that they place a fraud alert on your credit report. Here are the main customer support numbers you can call:
   • Experian—888-397-3742
   • Equifax—888-378-4329
   • TransUnion—888-909-8872
4. Your financial institutions—Contact your bank, credit card company, and any other financial institution where you hold the accounts that may have been compromised. Request that the institutions freeze or lock your accounts and issue new cards or account numbers if necessary

New York State Identity Theft Protection Laws

With the increase in identity theft cases, the state of New York has taken measures to combat identity theft and safeguard its residents by implementing laws and provisions that specifically address this crime. Here are the three key identity theft laws in New York:

1. New York Penal Law—New York Penal Law Article 190 covers a range of fraud-related crimes. It includes offenses like criminal possession of stolen property, identity theft, and unlawful possession of personal identification information
2. The Stop Hacks and Improve Electronic Data Security (SHIELD) Act—First enacted in 2019, the act has since expanded the range of information it applies to. It also includes types of breaches that require notification and introduces data security obligations for businesses
3. New York General Business Law—Includes provisions related to protecting consumer information and online privacy

Identity Theft Penalties Under New York Law

If you’re an identity theft victim in New York, it’s important to understand the penalties perpetrators may face under state law so you know what to expect from the remediation process. The New York law recognizes several degrees of identity theft:

• First-degree identity theft/aggravated identity theft—Class D felonies according to Section 190.80 and Section 190.80-a of the New York Penal Law
• Second-degree identity theft—A Class E felony according to Section 190.79 of the New York Penal Law
• Third-degree identity theft—A Class A misdemeanor according to Section 190.78 of the New York Penal Law

Depending on the degree of their offense, identity criminals can face the following penalties:

Identity Theft Penalty	First-Degree Offense	Second-Degree Offense	Third-Degree Offense
Monetary penalty	Up to $5,000 in fines or double the earnings from committing the offense	Up to $5,000 in fines or double the amount they profited from committing the criminal activity	Up to $1,000 in fines or double the value of the property subject to the crime
Prison sentence	Up to seven years in prison	Up to four years in prison	Up to one year in prison

Child Identity Theft in New York

A particularly concerning version of identity theft is child identity theft. According to New York’s Secretary of State Robert J Rodriguez, the likelihood of children falling victim to identity theft is 35 times higher than for adults. Identity thieves target children’s untapped credit histories because they can use them to create new, fake identities or conceal serious crimes, including sexual offenses.

Often an overlooked group in this context, children are increasingly becoming victims of identity theft. Here are three reasons why child identity theft is particularly alarming:

1. Clean slate—Children generally have a clean credit history, which makes them attractive targets for fraudsters looking to financially exploit them
2. Delayed detection—Child identity theft often goes unnoticed until the child reaches adulthood and starts applying for credit cards or loans. By then, the damage is extensive, and rectifying it takes time and effort
3. Long-term impact—The consequences of child identity theft can be long-lasting, affecting a child’s ability to secure student loans, rent an apartment, or even find employment in the future

According to a report published by Javelin Strategy & Research, about 1.7 million children in the U.S. fell victim to identity theft in 2022, costing the average U.S. family $372 out-of-pocket. This nationwide data highlights the seriousness of the issue.

How To Protect Your Child From Identity Theft

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To safeguard your child against identity theft, it’s important to be vigilant and stay informed about the threats and protection strategies. This includes taking action to prevent identity theft and monitoring for signs that your child’s personal information has been compromised. Here are four essential steps you can take to protect your child’s identity:

1. Be wary of scams
2. Secure personal documents
3. Use secure and encrypted connections 
4. Monitor credit reports

Be Wary of Scams

Watch out for phishing emails, malicious links, and phone calls asking for your child’s personal information. Legitimate companies won’t ask for sensitive data like Social Security numbers (SSNs), account numbers, or passwords over the phone or via email. It’s especially important to also teach your child to be suspicious of unsolicited requests for information as an extra precaution step.

Secure Personal Documents

Lock up physical records like Social Security cards, bank statements, and medical insurance cards. Shred all documents containing your child’s personal information before throwing them out to stop them from getting into the wrong hands.

When it comes to any accounts concerning your child, it’s crucial to create unique passwords. Use a combination of letters, numbers, and special characters for an added layer of security. You should also consider activating two-factor authentication (2FA) for your accounts as this additional layer of security goes beyond a password that can be hacked.

Use Secure and Encrypted Connections

Ensure that your home Wi-Fi network is password-protected with encryption for connections. It’s best to refrain from utilizing public Wi-Fi when engaging in transactions or accessing any of your or your child’s personal data. For added security, consider utilizing a VPN when accessing sensitive information on public networks.

Monitor Credit Reports

Check your child’s credit reports annually to ensure there are no fraudulent accounts opened in their name. Under federal law, you can request free annual credit reports on behalf of your child from Equifax, Experian, and TransUnion. Look for unknown accounts or incorrect personal information that could indicate identity theft. 

If you haven’t opened an account for your child, but they appear to have a credit history, this could indicate that someone is using their personal information for fraudulent purposes. However, catching fraud quickly can help limit the damage—you can request a credit freeze for children under 16 to lock access to their credit reports, but note that this method is not foolproof.

If you’re looking for a way to monitor your child’s identity and ensure their future financial stability at the same time, FreeKick by Austin Capital Bank is your best option.

FreeKick—Identity Monitoring for You and Your Children

FreeKick provides a combination of an FDIC-insured deposit account and additional services. It allows parents to invest in their children’s future while also ensuring their personal information is being monitored.

This way, FreeKick provides a solution that addresses two primary concerns for parents and their children—child identity fraud protection and credit profile building.

FreeKick’s Identity Monitoring Services

To help you rest assured your child is safe from child identity theft, FreeKick presents an array of services designed to notably diminish the threat of such offenses. It can help safeguard the identity of up to two parents and six children aged between 0 and 25.

You can rely on the following five FreeKick services for protecting adult children and parents:

• Credit profile monitoring
• SSN monitoring
• Dark web monitoring for personal information
• Up to $1 million identity theft insurance
• Full-service white-glove concierge credit restoration
• Lost wallet protection
• Court records monitoring
• Change of address monitoring
• Non-credit (Payday) loan monitoring
• Free FICO® Score monthly
• FICO® Score factors
• Experian credit report monthly

Identity protection services for minors include:

• Credit profile monitoring
• SSN monitoring
• Dark web monitoring for children’s personal information
• Up to $1 million identity theft insurance
• Full-service white-glove concierge credit restoration
• Sex offender monitoring—based on sponsor parent’s address

Credit Building and Monitoring

A strong credit profile can help your child save over $200,000 throughout adulthood, and FreeKick lets them get an early start through parent-sponsored credit building. 

Here is what the process entails. Once you open an account, you Activate Credit Building. 

If your child is already an adult, credit reporting will start within three months after opening the account. If they are a minor, they can activate credit reporting once they turn 18 (19 in Alabama) by selecting Activate Credit Reporting.

Once credit reporting is activated, a credit account for $1,000 will be reported to all three major consumer credit bureaus:

1. Experian
2. Equifax
3. TransUnion

The report will include the account opening date, amount of credit, type of credit, and last 24 months of payment history, jumpstarting your child’s credit score. 

At the end of the 12-month term, you can keep building your child’s credit profile by renewing the account. You can also close it and get 100% of your deposit back. Note that your child’s credit history can only be reported to credit bureaus if they’re a legal adult because credit bureaus don’t allow it for underage children. This is why minors must go through the process of activating credit reporting upon reaching adulthood. With this in mind, if you close the account early while the child is still a minor, no credit can ever be reported for the account.

FreeKick’s Diverse Plans—Pick One That Aligns With Your Budget

With FreeKick, you can choose a plan depending on your needs and budget. Here’s a quick breakdown:

FDIC-Insured Deposit Amount	Annual Fee
$3,000	$0 (Free)
No deposit	$149/year

FreeKick’s deposits are FDIC-insured up to $250,000.

To secure your child’s financial future by cultivating a strong credit profile and shield them from identity fraud risks, join FreeKick today.