Consumers are not heeding cybersecurity risks, according to a new survey from Nationwide, an insurance and financial services company. Experts are increasingly alarmed by the lack of consumer awareness despite an escalating risk of cybercrime through identity theft and AI-assisted attacks.

New data shows that 80 percent of survey respondents expressed concern about identity theft, however, only 16 percent reported having identity theft insurance. According to Nationwide, 52 percent of consumers encounter threats through spam phone calls, while 47 percent report facing risks via personal email.

Additionally, 41 percent of respondents have either been victims of identity theft or know someone who has, and 33 percent have been notified that their data was involved in a company's data breach within the past year.

"Cybercrime poses a profound threat to U.S. consumers, as criminals' methods and the technology available to them evolves and improves," said Sarah Jacobs, Nationwide vice president of personal lines product development. "Identity theft can devastate individuals financially and emotionally, leading to long-lasting repercussions that can hinder personal and professional opportunities. Consumers must take these threats seriously and work to safeguard their personal information and finances or insure against the possibility that their information is stolen."

Consumer complacency remains a significant concern within the insurance industry. Survey data found that 77 percent of consumers have accepted the risk of identity theft as a normal part of life.

Little is being done on the part of consumers to reduce the risk of identity theft. Only 28 percent of respondents said they have sought more information about cyber protection, due to misconceptions surrounding the cost and effectiveness of identity theft coverage. Some of the misconceptions consumers have about how they can reduce their risk of cybercrime include:

● 55 percent believe they need a separate policy for each family member.

● 49 percent are unaware of the potential damage identity theft can inflict on their credit score.

● 48 percent think hiring a lawyer is essential to recover their identity.

● 35 percent do not understand how long it takes for their credit score to recover after an incident.

● 33 percent are unsure about the duration required to recover from identity theft. Many respondents said they felt theft coverage was too expensive, with 45 percent saying they would only be willing to spend $24 a month.

"As examples of data breaches and identity theft become common, it's understandable to see why consumers are becoming numb to this threat and accepting identity theft as a part of life," said Rachel Bush, vice president of technology business risk at Nationwide. "Given the increased risk, we need to break through the misconceptions surrounding identity theft coverage and emphasize that acting today is vital for protecting your financial future. Ignoring these risks can leave you vulnerable when you least expect it."

Consumers do seem to be aware of the risks generative AI and deep fakes can pose to their personal information. Nearly 87 percent of respondents said they are worried about AI-assisted identity theft, while 73 percent are specifically concerned about the implications of AI-generated deep fakes.

"With the rapid evolution of AI-driven cybercrime, now more than ever, consumers must take their security seriously," said Jacobs. "I urge everyone to connect with their insurance agents to explore the protection options available to them. These professionals are here to help you navigate this complex landscape and ensure you have the safeguards in place. Once a cyberattack occurs, it will already be too late. Don't wait to act."


Source: Nationwide’s Cybersecurity Survey Report