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

New York is a growing target for identity theft due to its population density and extensive reliance on technology. A particularly prevalent version of this crime in the state 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 find children’s untapped credit histories appealing because they can use them to create new, fake identities or conceal serious crimes, including those committed by sex offenders.

Besides child identity theft, New Yorkers experience various other forms of this crime. The following table shows New York identity theft report numbers by type as of June this year, according to the Federal Trade Commission ( FTC):

Type of Identity Fraud	Total Identity Fraud Reports
Credit card fraud	6,260
Other identity theft	2,839
Loan or lease fraud	1,882
Bank fraud	1,650
Phone or utility fraud	1,074
Employment or tax-related fraud	1,000
Government documents or benefits fraud	966

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.

Main Ways Identity Theft Happens in New York

As a center of finance, culture, and technology, New York opens up both prospects and potential risks. To fully comprehend identity theft risks, check out the below techniques that criminals employ to get their hands on the personal information of New York residents:

Technique	Description
Phishing and spear phishing attacks	Cybercriminals employ emails to deceive individuals into disclosing information, with spear phishing targeting 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
Unauthorized access to online accounts	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
Gathering information from social media oversharing	Identity thieves find exploitable information that’s been recklessly shared on social media platforms

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. 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 companies, and any other financial institutions where you hold accounts that may have been compromised. Request them to 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. New York has some of the strictest laws against identity theft in the U.S., allowing for both civil and criminal charges. The table below provides an overview of the penalties for identity theft in New York, breaking down what they encompass both in civil and criminal contexts:

Identity Theft Penalty	What It Entails
Civil penalties	Identity thieves in New York may be liable for actual damages incurred by the victim, such as financial losses or costs to repair credit. They can also face additional statutory damages of up to $5,000 per violation
Criminal penalties	Identity theft is prosecuted as a felony in New York and can result in jail time for the perpetrators, plus fines

The severity of the penalty depends on the value of the damages. Here’s a general breakdown of the penalties by degree:

• First-degree identity theft/aggravated identity theft—Both are considered Class D felonies, and those found guilty could be sentenced to up to seven years in prison. The financial consequences include fines reaching up to $5,000 or potentially double their earnings from committing offenses
• Second-degree identity theft—As a Class E felony, this offense may result in the individuals convicted facing imprisonment for up to four years. The accompanying financial penalty can be as high as $5,000 or double the amount they profited from their criminal activities
• Third-degree identity theft—Sentences can reach up to one year in jail and/or up to $1,000 in fines

How Common Is Identity Theft in New York?

Unfortunately, identity theft is more common in New York than in the majority of other states in the U.S. In fact, the state ranks 15th in the U.S. for identity theft, with over 60,000 cases reported in 2022 alone—and child identity theft makes up a sizable portion of these cases.

Child identity theft is a growing concern that deserves special attention. Often an overlooked group in this context, children are increasingly becoming victims. 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

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 Keeps Your Family Safe From Identity Crime

Offered by Austin Capital Bank, FreeKick is an FDIC-insured deposit account that protects your family’s identities and helps build credit for your children.

A secure identity is important for major life milestones, such as securing a college loan and landing a good job. Unfortunately, child identity theft occurs every 30 seconds, which is why it’s crucial to take all precautions against this crime—like using a good identity protection service.

Identity Protection With FreeKick

FreeKick’s identity protection services cover your entire family. Here’s what the service offers for minors and adults:

Services for Minors	Services for Adult Children and Parents
Credit profile monitoring Social Security number (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 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

Credit Building With FreeKick

Secure identities must be complemented by a good credit profile for financial success in life. Enter FreeKick’s credit building service, which is available for children between 13 and 25 years of age.

You’ll have to take three steps to activate the service:

1. Create an Account—Create an account at FreeKick.bank and choose a deposit that suits your budget
2. Set It and Forget It—Once you activate the account, FreeKick will start building 12 months’ worth of credit history for your child
3. Keep Growing—After 12 months, you can close the account without any fees or continue building credit for your family for another year

As a result of establishing credit early, your child will get a credit history head start of up to five years when they turn 18. By enabling them to secure better loan terms and other financial benefits, this will help them save $200,000 during their lifetime.

FreeKick Pricing

FreeKick has two pricing plans:

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

Each plan offers:

1. Credit building for six children aged 13 to 25
2. Identity protection for two parents and six children aged 0 to 25

Secure your family’s identities and their financial future—sign up for FreeKick today.