Prove has released its State of Identity Report 2026, arguing that many widely used identity and authentication approaches are losing effectiveness as deepfakes, automated fraud, and AI-enabled attack tooling scale. The report frames identity as entering a period of “systemic change,” with organizations facing a widening gap between traditional trust signals and what is needed to operate safely in real time.
Among the report’s headline findings, Prove says humans correctly identify deepfake videos only 40 percent of the time, undermining visual verification as a reliable identity signal. The report also cites 2.2 billion digital identities compromised globally in data breaches since January 2022, describing a volume of exposed personal data that enables more targeted, automated attacks.
The report suggests organizations are already anticipating a near-term increase in AI-driven threats. It says 88 percent of organizations expect GenAI fraud to surge in the next two years, while 65 percent lack a comprehensive plan to defend against it. Prove also argues that common controls are being weakened in practice. It reports that 62 percent of organizations say they have seen material issues with multi-factor authentication being bypassed, and that single-signal authentication is losing credibility, with only 28 percent of buyers believing single-signal authentication is sufficient.
Prove’s report positions the core problem as a lifecycle gap. It says most identity systems “stop working after login,” and reports that 68 percent of organizations lack continuous authentication. It also says 70 percent do not use behavioral or device risk signals during authentication, despite the rising importance of detecting anomalies and takeover patterns as sessions evolve.
In response, the report argues that identity controls must shift toward continuous, multi-signal verification and risk-adaptive decisioning. A “path forward” section outlines four capabilities it says are required for a modern identity foundation: deterministic, cryptographically anchored trust; key-based proof of possession; orchestrated signal alignment; and continuous lifecycle identity authentication. Prove frames these as necessary to restore trust, reduce fraud, and build identity systems that can withstand AI-era threats.
The report also highlights market pressure for investment in stronger detection and prevention capabilities. It says 60.3 percent of buyers are highly concerned about GenAI-driven fraud, 67.6 percent are prioritizing behavioral capabilities in fraud and identity verification workflows, and 52.9 percent believe agentic AI will have the greatest impact on identity verification and fraud in the next two years.
Near the end of a recent ID Talk episode, Nate Soffio, head of reusable and agentic identity products at Prove, discussed how identity, provenance, and scoped authorization may need to evolve as software agents begin acting on users’ behalf.
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By the ID Tech Editorial Team
