Identity fraud in Europe surges by 150%, deepfakes on the rise

Sumsub has released its 2024 Identity Fraud Report, providing insight into the dynamics of global identity fraud and deepfakes.

The report reveals a concerning 150% year-on-year increase in identity fraud across Europe, indicating that this region is experiencing significant challenges with the issue. It shows that 67% of businesses reported an uptick in fraud, and nearly half of both companies and end users have become victims.

One of the standout findings concerns the role of deepfakes, which accounted for 7% of fraud attempts globally and saw a fourfold increase from 2023 to 2024. In the UK, deepfakes increased by 118%, reflecting escalating concerns about their usage. "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," stated Martin ten Houten, VP of Business Development, Europe at Sumsub.

Europe remains a focal point of concern, with identity fraud attacking the region at an alarming rate. Latvia, Ukraine, and Estonia were among the countries showing the highest levels of fraud. However, in the UK, identity fraud decreased by 8% for the same period. Elsewhere, Montenegro, Ireland, and Portugal topped the list for growth in identity fraud.

The report also highlights sector-specific data, with online dating being the most affected industry, registering an 8.9% increase in identity fraud. This was followed by online media, banking and insurance, video gaming, and cryptocurrency industries. The findings illustrate the widespread reach of identity fraud across various sectors.

Fake documentation is the most prevalent type of fraud, representing 50% of reported incidents. Chargebacks and account takeovers follow at 15% and 12%, respectively. This sheds light on the evolving techniques employed by fraudsters globally.

Engagement with AI tools is reportedly frequent among users, with 12.7% interacting a few times a month, 26.1% a few times a week, and 19.8% using them daily. This trend correlates with the increased sophistication and accessibility of fraud tactics, including those available through Fraud-as-a-Service platforms. "Our latest Fraud Report once again shows the changing dynamics of ID Fraud, not least the growing offensive capability of fraudsters," commented Martin ten Houten.

Consumer attitudes towards fraud protection are addressed in the report, with 79% of respondents indicating that both governments and businesses should share responsibility for safeguarding users. Weak passwords and data breaches were identified as key compromise methods.

The report highlights that businesses suffered average losses of $300,000 per fraud event in 2024. It warns that a fraud gang investing $1,000 could cause damages of $2,500,000 within a month, due to the increasing accessibility of FaaS and AI.

The emerging themes discussed include the necessity of collaboration between cybersecurity and fraud prevention teams, referred to as 'cyber-fraud fusion', and the pressing need for enterprises to engage in protective measures beyond initial onboarding.