AuthenticID Mid-Year Fraud Report Charts AI-Fuelled Spike

The 2024 Mid-Year Identity Fraud Review by AuthenticID reports a significant rise in fraudulent transactions and heightened consumer anxiety about identity fraud.

The review, based on a survey of North American consumers in the second quarter of 2024, points to a 73 percent increase in fraudulent transactions and an 84 percent rise in suspected fraudulent activities compared to the previous year. The report emphasizes the growing threat posed by AI-enabled fraud, particularly the use of deepfake technology in schemes such as account takeovers and injection attacks.

“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.” 

According to the survey, 40 percent of respondents reported their personal data had been exposed in breaches during 2024. Additionally, 91 percent of participants struggled to distinguish real individuals from deepfake images, highlighting the sophistication of current fraud techniques. Sixty-eight percent of consumers said concerns about identity fraud impact their purchasing decisions, account openings, and business interactions.

At the same time, the report highlights a growing consumer acceptance of biometric authentication and mobile driver’s licenses (mDLs) among consumers.

Earlier this summer, AuthenticID announced the launched of a new system designed to detect deepfakes and generative AI injection attacks during remote identity verification processes. The fully automated system, developed by the company’s Product and Applied Research team, includes three core elements: visual fraud algorithms to identify synthetic media, text fraud algorithms to detect errors in forged documents, and behavioral algorithms to monitor user activity for anomalies.

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July 22, 2024 – by Tony Bitzionis