Mid-Year Identity Fraud Review highlights the rise of deepfake technology, consumer sentiment regarding identity fraud and digital identity trends
Fraudulent transactions in the first half of 2024 were up over 73% year over year, and suspected fraudulent transactions increased by over 84%, according to the 2024 Mid-Year Identity Fraud Review, released today by AuthenticID, a global leader in identity verification and fraud prevention solutions. The report explores the continued rise in identity-based fraud across multiple industries and the accelerating effect of AI technology on fraud tactics, while outlining the latest tools businesses can use to fight fraud.
The report offers the very latest in growing fraud tactics that are already impacting businesses and consumers in 2024. Following the trajectory of emerging tactics explored in the 2024 State of Identity Fraud Report, the data offers a stark warning to businesses about the threats, and how customers respond to business’ responses, that are posed by identity fraudsters. The report offers comprehensive analysis of identity fraud trends based on two sources: internal proprietary data anonymized and analyzed from AuthenticID’s ID verification, biometric authentication, and watchlist technologies; and insights from AuthenticID’s fraud surveys conducted in Q2 2024, surveying consumers in North America.
“With the proliferation of new, generative AI-powered tools for fraudsters, businesses and consumers alike face a significant challenge in the form of breaches and business attacks. But those same generative AI-powered tools can also stop fraud. It’s up to businesses to stay ahead of fraud as it continues to evolve—fast.”
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The surge in AI-enabled fraud, as well as the increased use of deepfakes for identity fraud tactics like account takeover attacks and injection attacks, have a significant impact on fraud trends and consumer sentiment. Noteworthy impacts on businesses and consumers in the report include:
- 40% of survey respondents have already had their personal data exposed as part of a breach in 2024;
- 91% of people could not select a real person from a line of deepfake headshots;
- 68% of people said that the threat of identity fraud impacts how they make purchases, open accounts, and do business.
“What we’ve seen thus far in 2024 is that identity crime will continue to hit record highs, targeting both businesses and consumers,” said Blair Cohen, AuthenticID Founder & President. “With the proliferation of new, generative AI-powered tools for fraudsters, businesses and consumers alike face a significant challenge in the form of breaches and business attacks. But those same generative AI-powered tools can also stop fraud. It’s up to businesses to stay ahead of fraud as it continues to evolve—fast.”
The report also documents consumer and business sentiment regarding digital identity trends, such as biometric authentication and the growth of mobile driver’s licenses (mDLs), with a notable shift in consumer openness to the adoption of digital identity credentials as well as biometric authentication to access accounts.
The report also shares cutting-edge developments from AuthenticID’s Identity Fraud Taskforce, including new product enhancements that solve crucial challenges in identity verification, such as synthetic signatures, false rates in authentication, slow verifications, and deepfakes.
AuthenticID will continue to drive innovation forward in its technology to ensure companies can stay ahead of changing fraud techniques and regulatory requirements while delivering best-in-class customer experience.
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