Nearly one in four stolen identities is now being used to create a business – marking a sharp evolution in modern fraud.
Davis Maimon, a fraud investigator with SentiLink (Company looks for new fraud typologie) was recently interviewed by CBS LA on March 11, 2026 on what new tools are being used by today’s identity thieves. According to Sentilink, in the year 2020, identity theft began to take a new form. Using mostly text platforms (ie: WhatsApp and Telegram) to sell their businesses, some on the dark net.
Who is the most vulnerable to this type of identity theft?
In a report released by the Federal Trade Commission in 2024, “Identity theft often tops the list of consumer fraud reports that are filed with the FTC and other enforcement agencies.”
The most vulnerable targets of this type of fraud are social security numbers of former US immigrants (often foreign professors and students) who came to the US for a short term, gained a social security number, most likely opened a bank account, and then left the country after a period of time. The elderly (those with limited access to the internet, for example) are also being targeted.
1/4 of stolen identities are being used to obtain EINs.
According to this study, nearly 25% of those targeted identities obtain EINs via their state’s Secretary of State, which then allows them to open bank accounts, apply for larger loans, and more. Most of these new businesses began opening in 2024. Over 800 companies (in California alone) have been created using these real identities over the last 18 months.
Artificial Intelligence has drastically increased this risk.
In 2026, Artificial Intelligence (AI) has fundamentally shifted tax fraud. Tax fraudsters are leveraging generative AI (GenAI) to create hyper-realistic, deceptive content that bypasses traditional security, with AI-driven impersonation scams increasing by 148% in the past year, according to Sartorial Wealth.
How do you know if you or your address are being used for a fraudulent business?
Enter your address in your state’s Secretary of State website and see if your address is being used for a business you do not recognize.
IMPORTANT NOTE: The IRS will never initiate contact via email, text, or social media to request personal or financial information.
What steps to take if you become a victim.
- Respond to IRS Notices: Immediately contact the number listed on any letter or notice received from the IRS.
- Submit Form 14039: Complete the Identity Theft Affidavit (Form 14039), especially if a tax return was rejected because one was already filed.
- File a Report with the FTC: Visit IdentityTheft.gov or call 877-438-4338.
- Contact Local Police: File a police report regarding the identity theft.
- Contact Credit Bureaus: Notify Equifax, Experian, and TransUnion to place a fraud alert on your credit files.
- Contact the IRS Specialized Unit: If you have previously contacted the IRS without resolution, call the IRS Identity Protection Specialized Unit at 800-908-4490.
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How can you protect yourself from identity theft in 2026?
The FTC recommends that consumers “closely guard their social security number and shred charge receipts, copies of credit applications and other sensitive documents.” That we should review our bills and credit reports regularly and “be aware of telltale signs to detect that their identity may have been stolen.”
