AI-driven fraud & deepfakes pose escalating global threat

The Entrust Cybersecurity Institute has released its 2025 Identity Fraud Report, highlighting a significant increase in AI-assisted fraud incidents globally.

According to the report, the frequency of deepfake attacks in 2024 reached one every five minutes, marking a substantial growth in this sophisticated form of cyber assault. Digital document forgeries also saw a dramatic year-over-year increase of 244%, surpassing physical counterfeits for the first time as the leading method of document fraud.

Digital identity verification now plays a crucial role in the onboarding process, serving as the first line of defence against fraud and financial crime. The annual report, now in its sixth iteration, provides insights into the state of remote identity fraud to better understand the evolving landscape of cyber threats. It identifies digital document manipulation and deepfakes as the fastest-growing threats businesses will face in 2025.

Key figures from the report indicate that digital forgeries accounted for 57% of all document fraud globally in 2024. This shift has been attributed to the proliferation of 'as-a-service' platforms that facilitate knowledge sharing alongside the utilisation of generative AI tools, enabling more sophisticated forgery and injection attacks. The most frequently targeted documents in 2024 originated from APAC, specifically the India Tax ID, Pakistan National Identity Card, and Bangladesh National Identity Card, with the India Tax ID targeted the most due to the availability of templates online.

AI-assisted deepfakes present an area of significant concern for global organisations. Traditional phishing tactics are being replaced by hyper-realistic AI-generated deepfakes and synthetic identities. Advances in face-swap applications and GenAI tools have allowed fraudsters to execute convincing biometric fraud attacks at scale, with these attacks contributing to fraudulent account openings, account takeovers, phishing scams, and misinformation campaigns.

Within the realm of financial services, cryptocurrency, lending, and mortgages, and traditional banks were the most targeted industries in 2024. Fraud attempts on cryptocurrency platforms have nearly doubled compared to other sectors, with incidents rising from 6.4% in 2023 to 9.5% in 2024. The surge is suspected to be linked to cryptocurrency's peak market prices. Meanwhile, traditional banks saw a 13% increase in fraudulent onboarding attempts amid high inflation rates, which also contributed to a rise in lending and mortgage scams.

Simon Horswell, Senior Fraud Specialist at Entrust, stated, "The drastic shift in the global fraud landscape, marked by a significant rise in sophisticated, AI-powered attacks, is a warning that all business leaders must heed. This year's data underscores this alarming trend, highlighting how fraudsters are rapidly evolving their techniques. These threats are pervasive, touching every facet of business, government, and individuals alike. To stay ahead, security teams must proactively adapt their strategies, prioritise monitoring these emerging threats, and prepare their organisations to face this new reality. It's no longer optional; it's imperative."