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The Battle Against AI-driven Identity Fraud

Discover how financial institutions across Europe are combating AI-driven identity fraud. Learn about their experiences, AI's impact on fraud, and their preparedness to fight it.

Access the comprehensive report - the first of its kind - created in collaboration with David Birch and Consult Hyperion for these insights. 

Fraud attempts have surged by 80% in the past three years, with AI-driven fraud emerging as a significant threat. Its complexity is evolving, leaving financial service providers and fintechs struggling to defend themselves.

Fraudsters are using AI to create sophisticated schemes that are increasingly difficult to detect and prevent. Deepfakes now represent 6.5% of total fraud attempts, marking a staggering 2137% increase over the past three years.

The challenge for the industry is no longer just about AI making fraud more effective; it's now about AI driving fraud on an industrial scale.

This study explores various aspects of fraud and AI-driven identity fraud, including the current state of fraud, awareness of AI's role in fraud, the prevalence and impact of AI-driven identity fraud, the rise of deepfakes, organisational readiness to combat AI-driven fraud, and future prevention strategies.

– The power of AI is undeniable. Within little more than a year it has transformed how we think about the digital economy – accelerating us towards a future with unthinkable levels of automation. AI will bring substantial efficiency gains into all parts of the economy. However, it will also present new threats as bad actors learn how to use the technology for their criminal purposes.

Key findings at a glance

Growing awareness and an increasing threat, but confusion and inaction persist among fraud decision-makers. 

  • AI Evolution

    Three years ago, AI crafted synthetic identities and document forgeries; now, it fuels deepfakes and social engineering attacks

  • Threat Surge

    Deepfakes dominate eID fraud, targeting banks, fintechs, and large firms 

  • AI Success Rates

    42.5% of detected fraud involves AI, with a 29% success rate 

  • Future Challenges

    Fraud decision-makers foresee AI's role but grapple with its nuances and resource scarcity 

  • Business Preparedness

    Most businesses prioritise AI-driven fraud prevention but lag in implementation