With AI Fraud continuing to escalate, a new report from pan-European digital identity company Signicat, titled ‘The Battle Against AI-Driven Identity Fraud,’ reveals a significant gap between companies being aware of the problem and then implementing steps to address the issue.
In the main, artificial intelligence (AI) is being welcomed as a positive technological development. However, good things often come with the ‘bad’; one of these is the opportunity for it to be used for fraud.
Although 76% of decision-makers recognise the growing threat of AI and fraud, research shows that only 22% of organisations have started implementing measures to prevent it. This lack of urgency leaves companies vulnerable to increasingly sophisticated fraud techniques as they enter 2025.
Signicat’s research surveyed the opinions of more than 1,200 European fraud decision-makers working in fields including banks, fintech, payment providers, and insurance companies. Although the respondents were aware of the imminent threats, the findings showed a significant gap between understanding and taking action.
The Awareness-Action Disconnect
The Battle Against AI-driven Identity Fraud report reveals that although organisations acknowledge the problem, implementing safeguards is problematic due to:
- Lack of expertise: 76% of fraud decision-makers cite inadequate skills as a significant barrier.
- Lack of time: 74% admit they do not have the time to address the problem with the urgency it requires.
- Budget Shortfalls: 76% report insufficient funding for robust fraud prevention technologies.
“Despite the alarming rise in AI-driven identity fraud techniques like deepfakes, most organisations are stuck in the planning phase,” stated Pinar Alpay, Chief Product & Marketing Officer at Signicat. “The gap between awareness and action is widening, creating a ticking time bomb, especially for the financial sector and other regulated industries”.
2025: The Year of AI Fraud Evolution
As organisations face the challenges of 2025, the report warns that fraudsters will be leveraging AI to unprecedented levels, combining scale with sophistication.
One area of concern, which is expected to increase drastically, is Deepfake attacks, which have grown by 2137% over the past three years, according to Signicat’s data. It is just one example of how rapidly AI-driven fraud techniques are advancing.
To stay ahead of fraudsters, companies must act swiftly by:
- Prioritise multi-layered defence approach: From early risk assessment to robust identity verification and authentication tools combined with data enrichment to ongoing monitoring for a comprehensive approach covering the primary vulnerable fronts.
- Investing in AI-driven fraud prevention: Technologies like Signicat’s VideoID provide real-time fraud detection, including detection of document tampering and impersonation including deepfakes, fighting AI with AI.
- Building in-house awareness and partnering with trusted vendors: A proactive approach to staff training and external collaboration is key to managing this evolving threat landscape.
A Call to Action: Combating AI Fraud with AI Defences
“Just as our industry is constantly updating and preparing for new challenges, companies must do the same. Relying on obsolete solutions is the opposite of what’s needed.
Organisations must invest in new technologies that enable AI-based fraud detection. According to our data, deepfake attacks only accounted for 0.1% of all fraud attempts we detected three years ago, but today they represent around 6.5%, which is an increase of 2137% in the last three years“, adds Pinar Alpay.
About Signicat
Signicat is a digital identity company with an enviable track record in the world’s most advanced digital identity markets. Founded in 2006, Its mission is to build technology so that people can trust each other in a digital world.
The company’s Digital Identity Platform incorporates the most extensive suite of identity-proofing and authentication systems globally, all easily accessible through a single integration point. The platform supports and orchestrates the full identity journey, from recognition and onboarding through login seamlessly and consents to make legally binding business agreements which stand the test of time.
In 2019, Signicat was acquired by leading European private equity investor Nordic Capital. Today, it boasts a workforce of over 450 dedicated professionals across 17 European offices.
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