Identity fraud continues to evolve at a rapid pace, with threat actors increasingly turning to deepfake technology to carry out their malicious activities. According to Sumsub, a leading digital identity verification solutions provider, the use of deepfakes in identity fraud has increased tenfold in 2023 compared to the previous year.
In its recently released third annual Identity Fraud Report, Sumsub highlighted that artificial intelligence-powered techniques, including deepfakes, are among the top five tools used by fraudsters in online scams. The surge in deepfake usage accounted for a significant portion of AI-powered fraud techniques detected by the firm.
During a recent event in London, Ilya Brovin, the Chief Growth Officer at Sumsub, emphasized the growing sophistication of identity fraud, noting that organized groups are increasingly using AI-powered tools to carry out their illicit activities. He highlighted the accessibility and ease of use of AI and deepfake technologies as contributing factors to the rise in fraudulent activities.
The report revealed that the use of deepfakes for identity fraud has seen a substantial increase in regions such as North America and Asia-Pacific, with significant surges also observed in the Middle East, Africa, and Latin America. The cryptocurrency sector emerged as the most targeted industry for AI-powered fraud techniques, accounting for the majority of deepfake cases detected by Sumsub in 2023.
Pavel Goldman-Kalaydin, Sumsub’s Head of AI/ML, emphasized the transformative impact of artificial intelligence on fraud prevention and perpetration. He highlighted the alarming implications of deepfakes for identity theft, scams, and misinformation campaigns, underscoring the need for robust anti-fraud measures.
The report also identified Bangladesh, Pakistan, and Latvia as the top countries where identity fraud is most prevalent, with online media, professional services, and healthcare emerging as the most targeted industries. In addition to deepfakes, other prevalent fraud techniques in 2023 included money muling networks, fake IDs, account takeovers, and forced verification.
Sumsub also highlighted two emerging trends in identity fraud, including the increasing forgery of documents from developed economies by fraudsters and the targeting of non-regulated entities. These trends underscore the need for enhanced document verification and proactive fraud prevention measures in an increasingly complex threat landscape.
In conclusion, Sumsub emphasized the importance of collaboration and knowledge sharing among anti-fraud companies to stay ahead of evolving fraud tactics. By exchanging insights and experiences, the industry can work together to combat increasingly sophisticated fraudulent activities. The insights presented in the Identity Fraud Report are based on aggregated data from millions of users across 28 industries globally, highlighting the scale and impact of identity fraud in today’s digital landscape.