Synthetic Identity Fraud Now 11 Percent of All Global Fraud: Report

Synthetic identity fraud now accounts for 11 percent of all fraud globally, an eightfold increase from 2024, according to LexisNexis Risk Solutions’ annual cybercrime report analyzing more than 116 billion transactions processed through its Digital Identity Network.

The report also documents a 450 percent rise in agentic bot traffic during 2025 and a separate 59 percent year-over-year surge in malicious bot attacks. While the agentic bot traffic was not itself linked to malicious activity, the report noted that these AI-driven agents present a new challenge for fraud detection systems by introducing a third category of digital interaction alongside genuine human transactions and traditional scripted bots.

Synthetic identity fraud involves creating fictitious identities by blending real and fabricated personal information, often combining a legitimate Social Security number with a fake name and date of birth. These constructed identities can pass initial verification checks and build credit histories over months or years before being used for large-scale theft. The report found that synthetic identities are now present across financial services, e-commerce, and government benefit programs.

The 59 percent increase in malicious bot attacks indicates that AI tools have lowered the barrier to deploying sophisticated automated fraud at scale. Bots can now mimic genuine human browsing behavior with a high degree of plausibility, making them significantly harder to detect using rule-based systems. The report noted that traditional device fingerprinting and IP-based detection methods are increasingly ineffective against these AI-powered bots.

LexisNexis Risk Solutions, which completed its acquisition of AI identity verification firm IDVerse earlier this year, has been expanding its fraud prevention capabilities through behavioral biometrics and document authentication. The company also launched IDVerse for Insurance to address sector-specific fraud challenges.

The findings align with broader industry data on synthetic fraud growth. BioCatch reported record quarterly results driven by rising demand for behavioral biometrics to counter AI-driven fraud and scams.

Overall global fraud attacks rose eight percent during the reporting period, driven primarily by the combination of synthetic identities and AI-powered bot networks targeting financial institutions and digital commerce platforms.

Sources: PR Newswire, Computer Weekly

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By the ID Tech Editorial Team