45% of companies, 44% of end users were victims of ID fraud in 2023
Detailed analysis of ID fraud worldwide via proprietary and consumer survey data shows dramatic increase in fraud and deepfakes; and highlights key lessons for businesses.
Today, Sumsub, a full-cycle verification platform, announces the launch of their Identity Fraud Report 2024, a global analysis of identity fraud dynamics. The latest global data* spotlights the new findings and trends among nations, industries, types of fraud, as well as analysis of criminal techniques and fraud prevention strategies.
“Our latest Fraud Report once again shows the changing dynamics of ID Fraud, not least the growing offensive capability of fraudsters. Thanks to generative AI and the wealth of readily available Fraud-as-a-Service options, it has never been easier for bad actors to inflict huge amounts of damage on a tight budget,” said Martin ten Houten, VP of business development, Europe.
“Deepfakes can and should now be expected. Any misguided hope to head off identity fraud via a KYC-first approach belongs firmly to the past now that we can see over three-quarters of fraud takes place beyond this stage.”
Key consumer findings:
- The majority of respondents (56%) in Europe have fallen victim to identity fraud.
- A majority engage with AI tools frequently – either a few times a month (12.7%), a few times a week (26.1%), or daily (19.8%).
- 79% feel that both governments and businesses should share responsibility for protecting users from fraud.
- Weak passwords (22%) and data breaches (20%) were the primary methods of account compromise reported.
Key statistics for businesses in 2024:
- 67% of companies reported an increase in fraud, meanwhile, 45% and 44% of companies and end users reported being victims of identity fraud, respectively.
- Europe saw the highest increase in YoY growth of fraud out of all regions – 150%.
- Global ID fraud rates more than doubled since 2021 (1.1% to 2.6% in 2024).
- Fraud rates among social networks doubled (2024: 11.8%, 2023: 5.4%) thanks to bots and compromised accounts
- The dating industry led all others, with annual ID fraud growth at 8.9%. Followed by online media, at 7.7%; and banking and Insurance, at 2.7%.
- Fake documents are the leading fraud type, at 50% of all incidents; followed by chargebacks at 15%, and account takeovers and ‘others’ in joint third at 12%.
Deepfakes
- Deepfakes seized attention globally, they accounted for 7% of identified fraud attempts, and increased by 4x worldwide from 2023 to 2024.
- In the UK, the number of deepfakes grew by 118%.
- 81% of all respondents reported concerns about deepfakes and their impact on elections, with most believing either they have already influenced elections (51%) or will in the future (39%).
Europe in 2024
The full report analyses regions and each region in detail.
- In Europe, identity fraud grew by an average of 150% YoY in 2024,
- In the UK it actually decreased by 8% from 2023 to 2024.
- Latvia (4.35%), Ukraine (2.97%), and Estonia (2.77%) maintained leading positions, continuing to show the highest levels of total fraud.
- Montenegro, Ireland, and Portugal lead the list of European countries with the largest by growth in identity fraud growth.
Four emerging themes:
- Democratisation of identity fraud: On average, businesses lost approximately US$300,000 per fraud event in 2024. With $1,000 and one month, a fraud gang can inflict losses of up to $2,500,000 thanks to Fraud-as-a-Service (FaaS) and AI.
- Fraud is a team game:
Globally, every 100th individual in 2024 using a digital platform/service was involved in a fraud network, making ‘cyber-fraud fusion’, when cybersecurity and fraud prevention teams work together, essential. - Fraud doesn’t stop at onboarding:
76% of fraud attempts take place after the KYC process. - The burden of responsibility:
Due to regulations like the Online Fraud Charter or the EU’s AI Act, businesses are facing increasing pressure to compensate those victimised on their services or platforms. 62% of consumers believe protection from fraud is the combined responsibility of governments and businesses.
To learn more and download the full Sumsub 2024 Identity Fraud Report, please go to https://sumsub.com/fraud-report-2024/
