This study aims to explore the development of identity theft in the modern world with special attention to contemporary trends, cybercriminals’ techniques, and measures of protection in the context of the digital environment. The paper aims to identify a new generation of identity theft that has evolved from the physical world to the digital environment through phishing, social engineering, account takeovers, synthetic identity theft, and data breaches. It further discusses how new technologies such as Blockchain, Biometrics, and Artificial Intelligence affect identity theft prevention and detection. Furthermore, it assesses different measures to reduce the threat, such as awareness raising, legislation, cybersecurity measures, and technologies. In light of this, this research seeks to contribute to the literature by presenting an account of identity theft in the contemporary world and presenting appropriate solutions to mitigate this menace and protect personal information in the current digital age.