Build an identity theft conversation in five minutes

Key takeaways

• AI-powered impersonation is making identity theft harder to recognize: 84% of consumers are concerned about criminals using AI to steal someone’s identity, but only 19% feel very or extremely confident they could identify an AI-powered scam.¹

• In five minutes, agents can help clients identify one exposure, plan how to verify urgent requests and understand available recovery support. 

• Identity theft protection and personal cyber insurance address different risks. This article gives agents a practical way to start the identity theft conversation and help clients consider a next step. 

The agent opportunity: Turn an identity theft scenario into a preventative client conversation

You receive a notification that your application for a new credit card has been declined. The problem is that you never applied for the card. 

A quick review raises the possibility that someone used your personal information to apply for credit in your name. Now you are left wondering what else may have been opened, changed or accessed and where to begin putting the pieces back together. 

That may be identity theft, and it is the kind of risk many clients may not think about until it affects their credit, finances or sense of control. It also gives independent insurance agents a practical way to move beyond a general reminder to “be careful online” and help clients think about prevention, response and recovery. 

Consumers are concerned, but concern is not the same as readiness

The danger is becoming harder to recognize. Criminals can use artificial intelligence to create convincing messages, imitate familiar voices and make fraudulent requests feel urgent and personal. According to the Nationwide Cybersecurity Survey 2026 report, 84% of consumers are concerned about criminals using AI to steal someone’s identity, yet only 19% feel very or extremely confident they could identify an AI-powered scam. 

That gap matters because AI-enabled fraud is designed to exploit trust and urgency. A message does not have to look suspicious if it appears to come from a bank, a family member or another familiar organization. 

Consumers are taking some positive precautions: 78% install software updates when prompted, and 74% use multifactor authentication. But 50% report using the same password across multiple sites or apps, while 40% share personal information over the phone. The challenge is not that clients know nothing about cybersecurity, but that good habits and risky habits often exist side by side. 

Agents are trusted but not yet top of mind

The survey points to a meaningful opportunity for agents. 90% of independent agents say clients view them as a credible source of cybersecurity information, and 87% feel confident discussing cyber vulnerabilities and relevant coverages. Yet only 8% of consumers say they would turn to their insurance agent for information about identity theft or cyber scams. 40% look first to a bank, credit union or other financial institution. 

The opportunity is not necessarily to replace those sources. It is to make the agent relationship part of the client’s broader cybersecurity plan, especially when the conversation is already happening around personal risk, financial protection or a changing household. 

Agents recognize the need: 80% are concerned about clients’ cybersecurity knowledge, 76% say many clients are unaware of their exposure to cyberattacks and 74% say many clients are unsure what cyber insurance covers. Still, only 44% say they often or always discuss cyber threats with personal-lines customers. 

Agents should consider this conversation to help close that gap. 

The five-minute identity theft conversation

The goal is not a technical assessment or a product pitch. It is to help a client identify one realistic vulnerability, consider what they would do after an incident and understand that protection and recovery options exist. 

Minute one: Start with a situation the client can imagine

Ask: “What would you do if you received a notification about a credit card, loan or account you never opened?” 

This makes the conversation concrete and puts identity theft at the center. From there, the agent can explain that identity theft may (and often does) involve more than a single fraudulent purchase and it can require identifying what happened, contacting multiple organizations and working to restore the client’s identity. 

Minute two: Explore the first response

Ask: “If you received an urgent message that appeared to come from someone you trust, how would you verify it before taking action?” 

The survey found that 47% of consumers would call back if they received a voice message that sounded like a family member urgently asking for money, while only 17% have created a family code phrase or verification term. 

Encourage clients to decide on a response before they face a real incident: use a second communication channel, establish a family code phrase or pause before responding to an urgent request, and call the person using a trusted number. The goal is not to make clients suspicious of every message; it is to create a simple verification habit that can help keep personal information and money out of the wrong hands. 

Minute three: Identify one everyday exposure

Move from the hypothetical scenario to a habit that could make personal information easier to misuse. 

Ask whether they reuse passwords, use multifactor authentication on important accounts, store sensitive information on their phone or share personal information in response to an unexpected call or message. 

A client does not need to change everything at once. One concrete improvement, such as enabling multifactor authentication on an email account or creating unique passwords for financial accounts, can make the conversation actionable. 

Minute four: Clarify what protection means

Clients may use terms such as identity theft protection, personal cyber insurance and fraud protection interchangeably. They are separate solutions designed to address different risks. In this conversation, the focus is identity theft: what happens when someone uses a client’s personal information to act as them, and what support may be available during recovery. 

A helpful conversation can clarify: 

• How might I know that my information has been compromised? 

• What expenses could I face while recovering? 

• Who would help me navigate the process? 

• What identity theft protection or recovery support may be available? 

Many consumers understand that there are risks their bank or credit card provider may not fully cover. However, around half still believe their bank or credit card provider protects them from cyber risks beyond their financial accounts or from all forms of identity theft. An unauthorized transaction compared to a payment a client was tricked into authorizing may not be treated the same way.  

This is a natural point for an agent to explain that a financial institution may help address an unauthorized transaction, while identity theft protection may provide a broader path for monitoring, guidance and recovery support when personal information has been misused. 

Minute five: Create a next step

For clients who want to explore identity theft protection, Nationwide identity theft protection is available for $45 per year when added to an eligible Nationwide auto, home, renters, condo or RV policy. The offering includes monitoring for suspicious activity involving personal information, access to an Identity Protection Portal, access to Resolution and Cyber Risk Specialists, and reimbursement of up to $25,000 for certain covered out-of-pocket expenses if the client becomes a victim of a covered identity theft event. 

Monitoring, portal and resolution assistance services are provided by Iris® OnWatch. Terms, conditions, eligibility and covered expenses apply. 

Close the loop by connecting the product back to the opening scenario: “If someone applied for an account in your name, this is the type of support that could help you understand what happened and work through the recovery process.” 

Make identity protection part of the relationship

Identity theft does not need to become a separate appointment. An agent can ask one relevant question during a quote, renewal, annual review or conversation following a life change. Or, you may consider creating an email, social, or interactive experience to help inform and prepare clients.  

Consumers are concerned about AI-powered threats, but only 19% feel highly confident they could identify one. Agents already have the credibility to help clients move from concern to preparation. The opportunity is to make identity protection a more visible part of the personal-lines conversation and to give clients a practical next step before an identity theft incident occurs. 

Your next steps

Use these three questions to start the conversation: 

• What would you do if you received a notification about an account you never opened? 

• How would you verify an urgent request from someone you know? 

• If your personal information were used to act as you, who would help you begin the recovery process? 

Read the full Nationwide Cybersecurity Survey 2026 report to explore the latest insights on AI-powered scams, consumer preparedness and the evolving role of insurance agents.