Hackers are increasingly using keyloggers to install malicious code onto PCs, tracking typing activity to steal passwords and other sensitive personal information.
The report also found that the number of phishing attacks has soared in recent years. Figures gathered by the Anti-Phishing Working Group show that the number of strikes has multiplied 100-fold in the past two years.
In the United States, the cost of identity theft to the economy is US$49 billion each year.
"More and more, people are carrying out transactions on the internet, and as we move online, the criminals are following us," said Greg Day, senior security analyst at McAfee.
"We will probably see a saturation of phishing attacks over the next few years. But smarter hackers will move away from targeting banks and use a more subtle approach. However, identity theft is here to stay and will evolve and, possibly, get worse."