Taxpayers should beware of tax fraud scams, as identity theft costs Americans millions of dollars annually. But some states are more prone to fraud than others.
- Tax fraud is top of mind during tax season, but identity theft affects Americans year-round.
- Both identity theft and credit card fraud have a national average cost between $2,500 and $3,000.
- Nevada is the worst state for these financial crimes, while residents of Iowa are least likely to experience identity theft.
Identity theft can strike anyone, anywhere. Even during tax season.
The latest tax scam Americans need to watch out for, according to the IRS, is a twist on old favorite: filing a fake tax return with stolen personal information, like your Social Security number.
But financial fraud takes many shapes. And some places in the US may be more susceptible to the crimes.
RewardExpert found out which states are the biggest targets for credit card fraud and identity theft and where these financial breaches happen less frequently. In 2016, credit card fraud increased nationally by 5.15% — but that was offset by a drop in identity theft of 16.05%.
To rank each state in terms of security, RewardExpert took the incidence rate of credit card fraud and identity theft in each state and adjusted for the financial severity of the losses. They also took into account year-over-year trends, and data from the FBI's Internet Complaint Center.
While no correlation was found between per capita income and the likelihood of fraud or identity theft, a strong relationship between credit scores and these criminal activities was linked. The residents of the 10 states with the most fraud have an average credit score of 660, compared to 681 for the residents of the 10 safest states.
However, a low credit score may deter criminals where income is also lower, according to the report. After all, it does not make sense to commit credit card fraud against an individual with little to steal from.
The southwest is a particularly bad geographic region for these crimes with Texas, New Mexico, Arizona, Nevada, and California all being among the 10 states most at risk. States in the Great Plains have less to worry about: Nebraska, Wyoming, South Dakota, and North Dakota are several of the 10 safest states.
The average loss in cases of identity theft is $2,678 and $2,935 for credit card fraud, but the amount varies greatly between different states.
Below, find all 50 states ranked from the highest risk of identity theft and credit card fraud to the least. We've also included each state's per capita income, the frequency of credit card fraud and identity theft (per 100,000 residents), and the average loss associated with both.
50. Nevada
Per capita income: $52,431
Credit card fraud per capita: 872 cases per 100,000 residents
Identity theft per capita: 135.8 cases per 100,000 residents
Average credit card fraud loss: $2,322.69
Average ID theft loss: $3,281.13
49. California
Per capita income: $64,500
Credit card fraud per capita: 713.1
Identity theft per capita: 139.5
Average credit card fraud loss: $3,667.90
Average ID theft loss: $7,543.42
48. New Mexico
Per capita income: $48,382
Credit card fraud per capita: 667.9
Identity theft per capita: 96.9
Average credit card fraud loss: $3,647.95
Average ID theft loss: $4,325.06
47. Florida
Per capita income: $49,426
Credit card fraud per capita: 1,305.6
Identity theft per capita: 166.8
Average credit card fraud loss: $1,937.12
Average ID theft loss: $2,601.68
46. Texas
Per capita income: $55,653
Credit card fraud per capita: 952.3
Identity theft per capita: 119.2
Average credit card fraud loss: $7,274.49
Average ID theft loss: $3,904.31
45. Michigan
Per capita income: $51,084
Credit card fraud per capita: 1,083.3
Identity theft per capita: 175.6
Average credit card fraud loss: $1,517.03
Average ID theft loss: $2,762.87
44. Virginia
Per capita income: $66,262
Credit card fraud per capita: 701.3
Identity theft per capita: 104.3
Average credit card fraud loss: $3,098.35
Average ID theft loss: $1,921.80
43. Arizona
Per capita income: $51,492
Credit card fraud per capita: 656.9
Identity theft per capita: 126.2
Average credit card fraud loss: $2,310.99
Average ID theft loss: $1,326.71
42. Illinois
Per capita income: $59,588
Credit card fraud per capita: 576.7
Identity theft per capita: 138
Average credit card fraud loss: $3,349.46
Average ID theft loss: $4,700.80
41. Washington
Per capita income: $64,129
Credit card fraud per capita: 554.7
Identity theft per capita: 114
Average credit card fraud loss: $1,778.77
Average ID theft loss: $1,844.74
40. Maryland
Per capita income: $75847
Credit card fraud per capita: 807.7
Identity theft per capita: 137.1
Average credit card fraud loss: $1,679.17
Average ID theft loss: $1,572.54
39. Delaware
Per capita income: $61,255
Credit card fraud per capita: 797.5
Identity theft per capita: 155.9
Average credit card fraud loss: $1,543.10
Average ID theft loss: $313.08
38. Georgia
Per capita income: $51,244
Credit card fraud per capita: 1136.6
Identity theft per capita: 124
Average credit card fraud loss: $2,720.19
Average ID theft loss: $4,574.94
37. Colorado
Per capita income: $75,628
Credit card fraud per capita: 609.1
Identity theft per capita: 112
Average credit card fraud loss: $2,535.11
Average ID theft loss: $2,365.47
36. New York
Per capita income: $60,850
Credit card fraud per capita: 567.3
Identity theft per capita: 102.3
Average credit card fraud loss: $3,675.99
Average ID theft loss: $5,460.86
35. Tennessee
Per capita income: $47,275
Credit card fraud per capita: 767.3
Identity theft per capita: 86
Average credit card fraud loss: $2,236.56
Average ID theft loss: $2,008.05
34. Alabama
Per capita income: $44,765
Credit card fraud per capita: 809
Identity theft per capita: 82.4
Average credit card fraud loss: $505.21
Average ID theft loss: $1,544.68
33. South Carolina
Per capita income: $47,238
Credit card fraud per capita: 700.8
Identity theft per capita: 89.5
Average credit card fraud loss: $1,759.78
Average ID theft loss: $3,997.35
32. Massachusetts
Per capita income: $70,628
Credit card fraud per capita: 547.2
Identity theft per capita: 107
Average credit card fraud loss: $6,625.95
Average ID theft loss: $5,032.94
31. Oregon
Per capita income: $54,148
Credit card fraud per capita: 546.8
Identity theft per capita: 105.3
Average credit card fraud loss: $1,671.59
Average ID theft loss: $2,090.49
30. North Carolina
Per capita income: $47,830
Credit card fraud per capita: 641.2
Identity theft per capita: 96.1
Average credit card fraud loss: $3,717.67
Average ID theft loss: $2,151.95
29. Missouri
Per capita income: $50,238
Credit card fraud per capita: 706.5
Identity theft per capita: 136.1
Average credit card fraud loss: $$2,174.56
Average ID theft loss: $$1,148.94
28. Connecticut
Per capita income: $63,909
Credit card fraud per capita: 590.4
Identity theft per capita: 137.9
Average credit card fraud loss: $1,320.01
Average ID theft loss: $5,392.72
27. Pennsylvania
Per capita income: $55,702
Credit card fraud per capita: 659.2
Identity theft per capita: 109.7
Average credit card fraud loss: $1,590.33
Average ID theft loss: $1,773.72
26. New Jersey
Per capita income: $72,222
Credit card fraud per capita: 636.7
Identity theft per capita: 111.5
Average credit card fraud loss: $3,883.53
Average ID theft loss: $1,758.16
25. Vermont
Per capita income: $56,990
Credit card fraud per capita: 405.4
Identity theft per capita: 62
Average credit card fraud loss: $10,026.48
Average ID theft loss: $12,013.39
24. Minnesota
Per capita income: $63,488
Credit card fraud per capita: 470.7
Identity theft per capita: 107.2
Average credit card fraud loss: $2,944.04
Average ID theft loss: $3,986.29
23. Indiana
Per capita income: $50,532
Credit card fraud per capita: 562.8
Identity theft per capita: 76.8
Average credit card fraud loss: $1,623.93
Average ID theft loss: $5,181.35
22. Kentucky
Per capita income: $45,215
Credit card fraud per capita: 539.7
Identity theft per capita: 65.3
Average credit card fraud loss: $3,591.98
Average ID theft loss: $1,911.32
21. Rhode Island
Per capita income: $58,073
Credit card fraud per capita: 682.1
Identity theft per capita: 115.1
Average credit card fraud loss: $664.24
Average ID theft loss: $7,257.39
20. Ohio
Per capita income: $51,075
Credit card fraud per capita: 664.8
Identity theft per capita: 94.8
Average credit card fraud loss: $4,057.80
Average ID theft loss: $1,608.43
19. Alaska
Per capita income: $73,355
Credit card fraud per capita: 358.9
Identity theft per capita: 96.1
Average credit card fraud loss: $1,778.35
Average ID theft loss: $761.74
18. Utah
Per capita income: $62,912
Credit card fraud per capita: 417.9
Identity theft per capita: 83.2
Average credit card fraud loss: $2,397.32
Average ID theft loss: $1,086.05
17. Mississippi
Per capita income: $40,593
Credit card fraud per capita: 609.3
Identity theft per capita: 79.6
Average credit card fraud loss: $762.89
Average ID theft loss: $1,137.00
16. Kansas
Per capita income: $53,906
Credit card fraud per capita: 503.4
Identity theft per capita: 87.1
Average credit card fraud loss: $2,982.64
Average ID theft loss: $939.03
15. New Hampshire
Per capita income: $70,303
Credit card fraud per capita: 563.8
Identity theft per capita: 101.3
Average credit card fraud loss: $3,567.32
Average ID theft loss: $933.30
14. Idaho
Per capita income: $48,275
Credit card fraud per capita: 463.4
Identity theft per capita: 80.1
Average credit card fraud loss: $2,321.21
Average ID theft loss: $1,685.81
13. Montana
Per capita income: $49,509
Credit card fraud per capita: 441.2
Identity theft per capita: 68.2
Average credit card fraud loss: $4,120.54
Average ID theft loss: $3,439.54
12. West Virginia
Per capita income: $42,019
Credit card fraud per capita: 543.3
Identity theft per capita: 59.7
Average credit card fraud loss: $1,450.51
Average ID theft loss: $856.52
11. Oklahoma
Per capita income: $48,568
Credit card fraud per capita: 518.7
Identity theft per capita: 85.1
Average credit card fraud loss: $6,696.69
Average ID theft loss: $1,128.36
10. Hawaii
Per capita income: $73,486
Credit card fraud per capita: 403.8
Identity theft per capita: 55.2
Average credit card fraud loss: $2,722.27
Average ID theft loss: $1,884.41
9. Louisiana
Per capita income: $45,727
Credit card fraud per capita: 701.9
Identity theft per capita: 69.7
Average credit card fraud loss: $1,551.59
Average ID theft loss: $826.73
8. Wisconsin
Per capita income: $55,638
Credit card fraud per capita: 465.9
Identity theft per capita: 87.5
Average credit card fraud loss: $11,185.33
Average ID theft loss: $753.14
7. Nebraska
Per capita income: $54,996
Credit card fraud per capita: 411.9
Identity theft per capita: 83.1
Average credit card fraud loss: $4,287.75
Average ID theft loss: $1,151.07
6. Arkansas
Per capita income: $41,995
Credit card fraud per capita: 519
Identity theft per capita: 77.2
Average credit card fraud loss: $820.47
Average ID theft loss: $2,023.29
5. Maine
Per capita income: $51,494
Credit card fraud per capita: 423.7
Identity theft per capita: 87.9
Average credit card fraud loss: $1,286.72
Average ID theft loss: $2,016.96
4. North Dakota
Per capita income: $60,557
Credit card fraud per capita: 284.7
Identity theft per capita: 61.3
Average credit card fraud loss: $1,876.56
Average ID theft loss: $4,533.36
3. Wyoming
Per capita income: $60,214
Credit card fraud per capita: 416.2
Identity theft per capita: 74.6
Average credit card fraud loss: $1,716.68
Average ID theft loss: $346.39
2. South Dakota
Per capita income: $53,017
Credit card fraud per capita: 320.6
Identity theft per capita: 58.1
Average credit card fraud loss: $1,576.58
Average ID theft loss: $264.43
1. Iowa
Per capita income: $54,736
Credit card fraud per capita: 342.5
Identity theft per capita: 68.1
Average credit card fraud loss: $2,235.52
Average ID theft loss: $818.54
Taxpayers should beware of tax fraud scams, as identity theft costs Americans millions of dollars annually. But some states are more prone to fraud than others. Read Full Story
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