The forecast for identity theft scams and cybercrime in 2025 is bleak, according to the Identity Theft Resource Center (ITRC).

It’s anticipated there will be reduced support for victims and less law enforcement focus, likely leading to a rise in identity theft.

According to ITRC’s predictions, “federal government priorities under the new administration are likely to deprioritize critical areas like identity crime prevention, cybercrime enforcement, cybersecurity regulations and victim assistance program funding. Federal, state, and local governments, and non-governmental organizations (NGOs) that victims rely on to navigate complex fraud cases will see fewer resources allocated.”

There is also concern that certain law enforcement agencies will adjust their focus away from investigating cybercrime. Sophisticated, organized crime rings may take advantage of the reduced scrutiny and increase their efforts.

Another concern is if there a shift away from investigating cybercrime by law enforcement, there will be fewer fines to replenish the 40-year old Victims of Crime Act Fund which does not rely on taxpayer dollars.

The consequences will be significant, the ITRC said. Fewer resources for service providers like the ITRC, fewer victims receiving aid and a diminished ability to address the ripple effects of identity crimes.

The cybercrime job market will boom, according to the ITRC. Job postings seeking software testers are already appearing in job forums used by cybercriminals.

“Professional cybercriminal organizations are gearing up for a hiring boom to take advantage of the power of Artificial Intelligence and the lack of enforceable cybersecurity standards in the U.S.,” it said.

Surprisingly, proposed and in-force federal regulations requiring organizations to report cyberattacks and data breaches are expected to be weakened or abandoned this year, the ITRC said.

While federal regulations are expected to slide, the number of states expected to adopt their own privacy and cybersecurity laws and regulations will grow beyond the current 20 states that have them, the identity theft resource provider said.

While it is good news for residents of those states, a state-by-state approach creates confusion for people and businesses and a system where geography determines your protections and support services, the ITRC said, adding that it is also a compliance burden on organizations that operate in more than one state.

As a result of waning federal regulation, voluntary, self-regulation is expected to make a comeback.

While industries developing best practices and standards allows for flexibility and innovation, they also lack the enforcement mechanisms and oversight of formal regulations, the center said.

“Without mandated requirements, sophisticated fraud enterprises will take advantage of inconsistent protections, leading to increased identity crimes and consumer distrust,” stated the ITRC, adding that businesses could face greater reputational and financial risks due to breaches and fraud that stricter regulatory frameworks would help prevent.