A new report from Acuity Market Intelligence warns that deepfakes and synthetic identities represent a growing threat to online trust and digital business. The report projects that global losses from deepfake-enabled fraud could reach $40 billion annually by 2027.
Mapping Emerging Threats in the Identity Landscape
The Biometric Digital Identity Deepfake and Synthetic Identity Prism Report 2025, authored by Acuity Principal Analyst Maxine Most, is the sixth entry in The Prism Project series. It explores how advances in generative AI are fueling increasingly sophisticated identity fraud across multiple sectors.
The report identifies three core types of deepfake content used in fraud: counterfeit image deepfakes (static images), counterfeit video deepfakes (pre-recorded or real-time animated content), and counterfeit audio deepfakes. It also introduces a classification system for synthetic identities, ranging from fully synthetic profiles to hybrid combinations of real and fabricated personally identifiable information (PII) and biometrics.
The report highlights that these tactics are impacting a wide array of industries. Financial institutions face challenges related to synthetic loan defaults and unauthorized transactions. Healthcare providers are contending with medical record theft and fraudulent prescriptions. Government agencies must guard against forged credentials and benefit scams, while travel providers confront identity spoofing at borders and loyalty program abuse.
Defensive Strategies and Industry Leaders
“Biometrics must be at the core of any sustainable, reliable, and secure digital ecosystem,” Most states in the report. The analysis builds on earlier Prism Project research projecting trillions of biometric transactions by 2028.
The report advocates for a layered defense model that incorporates biometric liveness detection, document validation, cryptographic systems, and well-trained human reviewers. It also emphasizes the value of initiatives like the Coalition for Content Provenance and Authenticity (C2PA), which seeks to strengthen trust in digital media through metadata and content authentication standards.
Acuity’s proprietary framework, known as “The Prism,” maps the digital identity ecosystem across several layers, including infrastructure providers, identity technology developers, and firms focused on deepfake detection. Among those highlighted as industry “Trailblazers” are Adobe and iProov, both recognized for their leadership in countering synthetic identity threats.
Looking ahead, the report calls on organizations to adopt holistic strategies that balance user experience with security. These strategies include AI-powered fraud detection, streamlined digital onboarding, and authentication workflows designed to defend against deepfakes and synthetic identities at scale.
The full report can be accessed via the Prism Project website.
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June 4, 2025 – by Cass Kennedy and Alex Perala
