Fraud Statistics—Reported Losses Increasing Nearly Three Times Since 2020
The Federal Trade Commission reports total fraud losses reached a record $15.9 billion to $16 billion in 2025, marking a sharp rise from previous years ($12.5 billion in 2024). Cyberthieves are getting smarter and faster at deceiving consumers, with imposter scams at the top of the most reported forms of cybercrime. Most commonly reported fraud are scams using social media and phone, with the rest attributed to other digital offenses such as ransomware or malware. Solicitations have a heavy focus on the older adults (Ages 60+).
Virginia Cyber Fraud Impact
Virginia residents lose an estimated $2.3 billion a year to online scams and ranks 13th nationally for overall fraud complaints and 11th for elder fraud losses. Fraud is even impacting the insurance industry. Just as you protect your assets from the economic fallout of a home fire, the need for financial protection in a global online environment is a stark reality of the times we live here in the commonwealth.
What is Cyber Insurance?
Your homeowners insurance can help you repair and rebuild after a covered fire, but protection against identity theft and cybercrime generally requires additional coverage. Personal cyber insurance is an insurance endorsement that can help with certain recovery expenses and financial losses, depending on your policy’s terms, limits, and exclusions. Restoring your identity and resolving a cyber incident can take time and money, so understanding your coverage before something happens is an important part of being prepared. It protects you and your family from various forms of cybercrime. Depending on your policy, coverage may help with losses or expenses related to credit card fraud, forgery, fraudulent wire transfers, cyber extortion, ransomware, and cyberbullying.
What Does Cyber Insurance Cover?
Cyber insurance covers related expenses when your family experiences identity theft and more. Here are a few examples of covered damages:
Coverage varies by policy. Depending on the covered incident, terms, limits, and exclusions, benefits may include:
- Data recovery: Help with the cost of recovering personal files or data lost or damaged in a covered cyber incident.
- System recovery: Expenses to restore affected devices or systems after a covered attack.
- Financial loss: Reimbursement for certain losses from covered fraud or unauthorized transfers—not every scam or financial loss qualifies.
- Cyber extortion response: Assistance with covered ransomware or extortion incidents, including certain response expenses. Any ransom-related payment is subject to policy requirements and applicable law; contact your insurer before taking action.
- Cyberbullying counseling: Counseling expenses related to a covered cyberbullying event.
- Childcare or caregiver expenses: Certain additional care costs incurred while you address a covered incident.
- Temporary relocation: Eligible costs of temporarily moving if a covered event makes relocation necessary under the policy.
- Travel expenses: Certain travel costs directly related to resolving a covered incident.
- Lost wages: Reimbursement for eligible income lost while handling a covered event, subject to any time and dollar limits.
- Credit monitoring: Services to help monitor for potential misuse of your identity after a covered incident.
- Legal expenses: Certain legal fees associated with resolving covered identity theft or other covered cyber events.
Is Cyber Insurance Right for You?
As we continue to rely on computer networks and digital data for daily operations and to store important personal and financial data, cyber insurance should be a serious consideration for any consumer's financial portfolio. Here at NNINS, we offer a cyber protection product with our homeowners insurance for a minimal fee. Talk to your local insurance agent, and always be sure to utilize real-time identity validation and authentication best practices.
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THE NORTHERN NECK INSURANCE INTEGRITY PROMISE — We pledge to provide straight talk and good counsel from our NNIC Virginia insurance experts through our blog. While we hope you find this helpful source of information, it does not replace the guidance of a licensed insurance professional, nor does it modify the terms of your Northern Neck Insurance policy in any way. All insurance products are governed by the terms in the applicable insurance policy.
