Growing trends in cybercrime and identity theft for insurance agents

Consider this scenario: someone receives an email that appears to be from their bank. It asks them to verify their account, so they click the link and enter their name, date of birth and Social Security number. Months later, a collections notice arrives for a credit card they never opened and their credit score suddenly dips. One believable message, and a few seconds of trust, gave a criminal everything needed to steal the individual’s identity and open the account.  

As cyber threats become more sophisticated and interconnected, understanding how criminals use schemes like the one above is an important part of protecting your clients against identity theft.   

The evolution of cyber threats and key trends in identity theft affecting consumers

Cyber threats are no longer isolated incidents. They’re increasingly sophisticated and interconnected tactics that put consumers’ personal information, accounts and identities at risk. With more ease than ever before, cybercriminals may exploit trusted websites, apps, online services and third-party systems to obtain information that can ultimately be used to commit identity theft.¹ 

What’s more, many threats still rely on everyday vulnerabilities rather than highly technical attacks. Reused passwords, exposed credentials, unpatched devices and social engineering can all allow criminals to access personal information. Phishing, smishing and vishing attacks are particularly effective because they target people directly, often creating a sense of urgency or using familiar companies and services to persuade victims to share sensitive information.  

Artificial intelligence is adding another layer to these risks. Cybercriminals can use AI to create more convincing phishing messages, impersonations and other scams at a greater scale, making it increasingly difficult for consumers to distinguish legitimate communications from fraudulent ones. As AI and other digital technologies become more embedded in everyday life, individuals face an evolving range of threats that can make it more challenging to protect personal information and prevent identity theft.  

Consumers are concerned about identity theft, but many do not feel prepared

According to Nationwide’s 2026 Cybersecurity Survey ², 84% of consumers are concerned about criminals using artificial intelligence to steal their identity. However, only 19% report feeling very or extremely confident they could identify an AI-powered scam. This gap is worth raising directly with a client. Concern alone does not provide protection. It is a reason to ask what a client would actually do if they received a message that appeared to come from their bank.  

The same survey indicates that consumers are aware of several best practices to prevent cybercrime. 78% install software updates when prompted, and 74% use multifactor authentication. However, half continue to reuse the same password across multiple sites or applications, and 40% share personal information over the phone when asked. This distinction is useful when raising identity theft, since most clients are not starting from a position of complete unfamiliarity. A conversation can begin simply by asking where a client may still be reusing a password, then discussing what that habit puts at risk.  

One additional finding deserves attention: 40% of consumers indicate they would most often turn to banks, credit unions, or other financial institutions for information about protecting themselves from identity theft or a scam, while only 8% would think to contact their insurance agent. Most clients have not yet made the connection between identity theft and their agent relationship. This represents an opportunity rather than a shortcoming on the client’s part.   

Recovery is the aspect clients most often underestimate

Individuals who have experienced identity theft rarely lead with a dollar figure when describing the experience. They more often describe the hours spent on hold with financial institutions, the number of passwords that had to be changed, the documents that had to be replaced, and the months required before they stopped monitoring their accounts daily. This prolonged and demanding process is frequently the aspect clients underestimate most when considering their own exposure. It is also one of the more effective ways to make the topic tangible in conversation, since most clients can envision the inconvenience even without a specific figure attached.  

A practical approach to raising this identity theft and cybercrime with clients

Begin by asking whether the client, or someone they know, has experienced identity theft, fraud or a scam. Personal accounts tend to resonate more than statistics, and most clients have one to share. From there, ask what they would actually do if it happened to them. Many clients have not considered a response beyond general concern.  

Once the exposure has been discussed, connect it to something concrete: the time required for recovery, not solely the financial cost. Then move to habits. Ask about password reuse, whether multifactor authentication has been enabled where available, and how the client responds to unexpected calls or texts requesting personal information. Specific, actionable habits are more useful to a client than a general caution to exercise care.  

If a client expresses interest in protection options beyond this conversation, let them know that such options exist and that you are available to help them determine what may be appropriate for their situation, without reviewing product comparisons at that time. That discussion is better suited to a separate meeting, once their specific concerns are better understood.  

Finally, treat this topic as one to revisit rather than address once. Threats evolve enough from year to year that a conversation held two years ago may no longer reflect the current landscape. Incorporating a brief cyber-risk check into an annual review, similar to reviewing a life change or a new driver in the household, helps ensure you remain the person a client contacts first.  

Making identity theft risk management and coverage a part of ongoing conversations

Rather than treating identity theft as a standalone topic to raise once, look for the moments where it already fits naturally into conversations you’re having with clients and prospects. A new-business quote is a natural opening: as you review a client’s overall risk picture, a brief question about how they’d handle a scam or a compromised account fits alongside the other exposures you’re already discussing. Renewals offer another opening, particularly after a life change such as a new driver, a home purchase or a new household member, all moments when personal information tends to circulate more widely. Even claims conversations can create an opening, since a client already thinking about risk is often more receptive to a related question about identity protection.  

It’s a habit of asking one relevant question when the moment is already there, whether that’s during an initial quote, an annual review, or a follow-up call. Over time, these small, recurring conversations are what position you as the person a client or prospect thinks of first when something feels off.  

For clients who want a resource beyond this conversation, Nationwide’s Identity Theft Protection coverage is built around three elements: monitoring, protection and resolution. On the monitoring side, clients receive ongoing alerts if their personal information shows unusual activity, so a problem can surface before it grows into a larger one. On the protection side, the coverage is there to help offset the financial impact if a client does become a victim, covering many of the out-of-pocket costs tied to recovery. And on the resolution side, clients get access to specialists who walk them through the process itself: reporting the theft, contacting creditors and credit bureaus, replacing documents and working through each step until the situation is resolved. For a client who has never dealt with identity theft, that combination, someone watching for it, help covering the cost, and support handling the process, can make an already stressful situation considerably more manageable.  

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.