As AI-driven identity fraud escalates, Signicat’s report The Battle Against AI-driven Identity Fraud reveals a gap between awareness and action. While over 76% of fraud decision-makers recognise the growing threat of AI in fraud, only 22% of organisations have started implementing AI-driven fraud prevention measures. This delay in action leaves companies vulnerable to increasingly sophisticated fraud techniques as they enter 2025.
The research surveyed over 1,200 fraud decision-makers across banks, fintechs, payment providers, and insurance companies in Europe. Despite a high awareness of the threat, the findings reveal a significant gap between understanding the issue and taking action.
The Awareness-Action Disconnect
The report highlights that organisations are aware of the problem but struggle to implement the necessary defences due to:
- Lack of expertise: 76% of fraud decision-makers cite inadequate skills as a major barrier.
- Lack of time: 74% admit that they do not have the time to address the problem with the urgency it requires.
- Budget Shortfalls: 76% report insufficient funding to deploy robust fraud prevention technologies.
‘Despite the alarming rise in AI-driven identity fraud techniques like deepfakes, most organisations are stuck in the planning phase,’ states Pinar Alpay, Chief Product & Marketing Officer at Signicat. ‘The gap between awareness and action is widening, creating a ticking time bomb, especially for the financial sector and other regulated industries’.
2025: the year of AI Fraud evolution
As organisations face the challenges of 2025, the report warns that fraudsters are set to leverage AI to unprecedented levels, combining scale with sophistication. Deepfake attacks, which have grown by 2137% over the past three years according to Signicat’s data, are just one example of how rapidly AI-driven fraud techniques are advancing.
To stay ahead of fraudsters, companies must act swiftly by:
- Prioritise multi-layered defence approach: From early risk assessment to robust identity verification and authentication tools combined with data enrichment to ongoing monitoring for a comprehensive approach covering the primary vulnerable fronts.
- Investing in AI-driven fraud prevention: Technologies like Signicat’s VideoID provide real-time fraud detection, including detection of document tampering and impersonation including deepfakes, fighting AI with AI.
- Building in-house awareness and partnering with trusted vendors: A proactive approach to staff training and external collaboration is key to managing this evolving threat landscape.
A Call to Action: Combating AI Fraud with AI defences
‘Just as our industry is constantly updating and preparing for new challenges, companies must do the same. Relying on obsolete solutions is the opposite of what’s needed. Organisations must invest in new technologies that enable AI-based fraud detection. According to our own data, deepfake attacks only accounted for 0.1% of all fraud attempts we detected three years ago, but today they represent around 6.5%, which is an increase of 2137% in the last three years’, adds Pinar Alpay.
Signicat’s solutions are designed to meet these challenges head-on. From advanced biometric identity verification to seamless fraud orchestration, Signicat equips organisations with the tools needed to close the gap and stay ahead of AI fraud.
