Myth Buster: Most Consumers Aren’t at Risk for Identity Theft

by Michael Bruemmer 4 min read September 18, 2017

Businesses may be increasingly aware of identity theft threats to their customers, but anExperian surveyshows that many consumers still seriously underestimate their risk of falling victim to identity thieves. In fact, the persistent and harmful myth that the majority of consumers are not vulnerable to identity theft is badly in need of debunking.

Consumer misconceptions

The online Experian survey of 1,000 Americans, age 18 and older, found many consumers have a false sense of security about identity theft, even those who regularly engage in behaviors that can dramatically elevate their risk of having their identities stolen. For example:

  • Sixty-two percent of consumers said the security of their personal information online is a minor concern that doesn’t worry them much, and 17 percent never worry about it at all. The top reason for their lack of concern? Twenty-seven percent said it was because they didn’t share that much personal identifiable information (PII) online. Yet consumers store an average of 3.4 types of PII online, and have a large digital footprint that can make it easy for cybercrooks to track and steal their information.
  • Half believe poor credit means identity thieves won’t be interested in stealing their PII.
  • Twelve percent believe they’re safe because they take security precautions, and 9 percent think using only secure websites insulates them from identity theft risks.

Risky behaviors

When identity theft occurs, consumers are likely to blame any business they associate with the theft. A Gemalto survey found that consumers said protecting their data is 70 percent the responsibility of the companies they do business with, and just 30 percent their own responsibility, Infosecurity Magazine reports. What’s more, 29 percent said they don’t think businesses take their responsibilities seriously enough when it comes to protecting consumer data.

Yet the survey found consumers are probably far more responsible for identity theft than they think because they continue to engage in behaviors that put them at greater risk. These include:

  • Shopping online over a public Wi-Fi connection (43 percent)
  • Allowing others to use online account names and passwords (33 percent)
  • Letting others know their mobile device passwords (29 percent)
  • Sharing payment card numbers and/or PINs (25 percent)
  • Letting others use their PII to secure a job or credit (20 percent)
  • Failing to enroll in credit monitoring or identity theft protection services (82 percent)
  • Leaving it up to their banks and credit card companies to catch signs of fraud (81 percent)

These dangerous habits can expose consumers’ PII to cybercriminals, even though half of those we surveyed didn’t think they were likely to become victims of identity theft.

Impact of identity theft

When consumers become identity theft victims, they experience a range of negative emotions and real consequences that affect them personally and financially. According to a survey by the Identity Theft Resource Center, identity theft victims reported feeling frustrated, fearful, angry and stressed. Many had trouble concentrating, lost sleep and felt physically ill because of the crime. They also reported the identity theft overshadowed their personal relationships, their personal and professional credibility, and even affected their ability to get jobs. Some even lost their jobs as a result.

What companies can do

Clearly, identity theft can be devastating and consumers need to do more to protect themselves. When it occurs, identity theft also undermines the consumer’s trust in companies and institutions, especially if the identity theft occurred in connection to or following a data breach.

Helping consumers protect themselves from identity theft benefits everyone. Consumers can avoid the financial and emotional turmoil identity theft causes, and companies can help preserve their relationship with customers.

As part of an effective data breach response plan, companies should include a consumer care element that provides breached consumers with:

  • Free identity theft protection and credit monitoring services
  • Dark web and internet records scanning
  • Fraud resolution services
  • Identity theft insurance

Myth debunked

Year after year, identity theft statistics demonstrate that most consumers are at risk of falling prey to identity thieves, no matter what they believe to the contrary. Unfortunately, consumers continue to take actions that can place their identities at risk. While you can’t force your customers to stop accessing their bank accounts over airport Wi-Fi or using the same password for all their financial accounts, you can take steps to reduce the risk they’ll experience identity theft because of something your organization did or didn’t do.

Helping consumers protect themselves from identity theft makes good business sense, and it’s the right thing to do. Plus, consumers expect it; according to the Ponemon Institute’s “Mega Data Breach: Consumer Sentiment” survey, 63 percent of consumers believe a company that experiences a data breach should offer free identity protection to customers affected by the breach.

Related Posts

One Platform, Fewer Handoffs, Faster Decisions

The average credit union manages between 100-300 vendor relationships, and nearly a third have no dedicated staff managing them. What was supposed to drive efficiency is stunting growth and compromising the member experience. Application volume is continuing to rise, and consumers expect a loan decision at digital speed. But for credit unions, meeting that expectation isn't the only goal. They must also continue to make the right lending decisions while also prioritizing risk management. The institutions pulling ahead aren't the ones with the most tools. They're the ones that have turned credit, fraud and decisioning into a single, coordinated system. A single loan decision touches: Credit data Identity verification Fraud signals Decisioning logic Reporting Rarely does all of that live in one place. More often, it’s stitched together across separate platforms, each with its own contract and its own support line. When a credit view and a fraud view are generated separately, they must be reconciled instead of read together in the same instant. Every handoff is a place where a decision slows down and a signal gets missed. It's why a fraud pattern that would be obvious next to the credit file often surfaces only after the funds are already gone. Fragmentation also makes it harder to optimize lending strategies over time. When data, analytics and decisioning are disconnected, credit unions have less visibility into what's working, what's changing and where strategies need to be adjusted. An integrated decisioning ecosystem closes those seams by design, with credit, fraud and lending strategy running on one platform and accessed through a single Application Programming Interface (API). Identity and compliance capabilities can be an integrated decisioning flow. The data doesn't need to be reconciled after the fact because it was never separated in the first place. Stop overengineering, start removing friction When decisioning underperforms, the instinct is to build something more custom: a proprietary model, tighter segmentation, more configuration.  Custom modeling has its place for institutions with the scale and data to justify it. But often, for small or mid-sized credit unions, the bigger opportunity is a flexible decisioning strategy that uses a strong, continuously refreshed model. This shouldn't be either/or. The right approach gives credit unions a strong decisioning strategy today, with the ability to introduce more customized analytics and modeling as their needs evolve.  The same principle applies to strategy management: credit unions can gain greater control through self-service capabilities as they build a more sophisticated data science team.   That kind of flexibility is important as credit unions modernize their decisioning infrastructure. Research surveying more than 2,000 senior credit risk and fraud decision-makers across 11 countries found that organizations investing in unified platforms and modern infrastructure are moving faster and realizing the greatest Return on Investment (ROI).   As their needs evolve, credit unions can adjust decisioning strategies without introducing another layer of technology or relying on third parties to make every change. Until self-service is the right fit, choose a partner that understands what makes your credit union’s membership and risk appetite different from others.  Same member, same afternoon, faster answer Consider a credit union growing its auto and personal loan originations.  A member applies for an auto loan on Saturday afternoon. Credit data, identity and fraud signals are read together in a single real-time pass instead of separate reviews:  Most applications resolve immediately, approved or declined based on a more comprehensive view of the applicant. A smaller number are flagged for quick step-up verification and cleared within minutes. Only genuinely ambiguous cases reach an underwriter, who is working from one complete picture instead of reconciling multiple signals. The member has an answer before the weekend is over. The credit union books the loan before competitors even open on Monday. Built to scale This kind of process holds up today. However, the better test is whether it holds up eighteen months from now when application volume has grown, new products are live and the data flowing through the system looks nothing like it does right now. Future-proofing isn't only about handling more volume. It's about having room to be nimbler and make adjustments as quickly as the market changes. A credit union that relies on standard models within a decisioning strategy may want more customized analytics and greater control over its strategies tomorrow. Connect with us With more than three decades of credit expertise and one of the industry's largest data footprints, Experian helps credit unions do more than solve this year's friction. We're helping to build a decisioning foundation that scales, so growth becomes something the system absorbs, rather than something it must be rebuilt around. Explore More

October 21, 2026 by Zohreen Ismail
Cash Flow Insights: Powering the Next Evolution in Lending

For decades, credit data has given lenders a trusted foundation for assessing risk. Now, consumer-permissioned cash flow data is adding another layer of insight into consumers’ financial lives, including income, spending, liquidity and changing financial obligations. The opportunity is significant. Nearly one in five consumers lacks access to or has damaged credit. New Experian research also shows that 60% of consumers who have previously been denied credit or received less favorable terms than expected believe the outcome would have been different if lenders had considered their recent income and banking activity alongside their credit history. 1,2 For lenders, cash flow insights can provide additional context about a consumer’s financial capacity and support more informed underwriting decisions. The next challenge is making those insights easier to use consistently and responsibly at scale. What are cash flow insights? Cash flow insights are derived from consumer-permissioned banking data and provide visibility into how money moves into and out of a consumer’s accounts. Depending on the information available, cash flow data can provide insight into financial behaviors such as: Income and income stability: Regular and irregular income streams and changes over time Spending and recurring expenses: Everyday spending patterns and ongoing financial obligations Account balances and liquidity: Available funds and changes in account balances Debt obligations: Loan payments and other recurring debt commitments Cash flow patterns: How money moves into and out of accounts over time Traditional credit information provides a rich history of how consumers have managed credit. Cash flow insights add context about their current financial activity and capacity, providing lenders with a more complete view of financial health. Cash flow insights can also add predictive value to risk assessment. Experian analysis shows Cashflow Score can deliver up to a 25% lift in predictive performance over conventional credit scores when tailored to targeted risk tiers.3 How lenders can put cash flow insights to work at scale As interest in cash flow insights grows, the conversation is moving beyond what the data can reveal to how financial institutions can use it consistently and responsibly. That requires standardized consumer reporting, clear governance and decision-ready insights that can work within established lending processes. The launch of Experian Cashflow Data Bureau at Vision 2026 reflects this shift from access to adoption. The new consumer reporting agency operates under the Fair Credit Reporting Act (FCRA) and is designed to help financial institutions adopt consumer-permissioned cash flow insights at scale. A key part of that foundation is the cash flow consumer report, which organizes consumer-permissioned banking information into a standardized consumer report regulated under the FCRA. This gives lenders a consistent foundation for incorporating cash flow information into lending decisions while providing consumers with access to the information in their report. Watch this video to see how Experian Cashflow Solutions turns consumer-permissioned cash flow data into decision-ready attributes, scores and custom analytics, backed by bureau-grade governance. Turning greater visibility into better decisions The next evolution in credit isn’t about choosing between traditional credit and cash flow data. Each provides a different perspective. Traditional credit information offers deep insight into how consumers have managed credit over time. Cash flow insights can add context about financial activity and capacity. Bringing those perspectives together can give lenders greater visibility into consumers’ financial health and help them better distinguish between risk and resilience, support more informed decisions and identify opportunities to responsibly expand access to credit. As cash flow adoption continues to grow, its value will come from how effectively it complements the information lenders already use. The opportunity isn't simply to see more data. It's to turn that additional visibility into smarter, more informed decisions. Explore how Experian Cashflow Data Bureau is helping financial institutions put consumer-permissioned cash flow insights into practice at scale. Learn more [1] Federal Reserve Bank of New York, The Market for Credit Building: Demand, Product Characteristics and Consumer Uses, 2026. [2] Experian commissioned Atomik Research to conduct an online survey of 2,000 U.S. adults age 18+. Fieldwork took place July 16–21, 2026. Margin of error: +/- 2.2 percentage points at a 95% confidence level. [3] Based on Experian analysis when Cashflow Score is compared with conventional credit scores, tailored to targeted risk tiers. Predictability based on KS.

October 14, 2026 by Julie Lee
The Three Onboarding Fraud Pain Points That Slow Growth (And How to Solve Them) 

Effective fraud prevention is critical to balancing security and customer experience during onboarding. Learn more!

October 12, 2026 by Charles Hunter

Subscribe to our Newsletter

Enter your name and email for the latest updates.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Subscribe to our Newsletter

Don't miss out on the latest industry trends and insights!
Subscribe