Payment Fraud Goes Mainstream: Sift’s Q1 2025 Digital Trust Index Reveals 89% Surge in Consumer Exposure to Fraud Schemes

Sift, the AI-powered fraud platform securing identity trust for leading global businesses, today released its Q1 2025 Digital Trust Index. The report revealed an alarming trend in the democratization of payment fraud: 34% of consumers have seen offers to participate in payment fraud online—an 89% increase over 2024.

This dramatic increase highlights how payment fraud has moved from the domain of sophisticated cybercriminals to become accessible to everyday consumers through easily available tools and services. The report details how fraudsters openly advertise and sell stolen payment information and fraud services on social media platforms and deep web forums like Telegram, significantly lowering the barrier to entry for anyone to participate in fraudulent activities.

“The democratization of fraud through the widespread availability of stolen payment information and validation tools—easily found and purchased online—is luring ordinary consumers into cybercrime,” said Kevin Lee, SVP of Customer Experience, Trust & Safety at Sift. “This new reality for fraud demands a fundamental shift in how businesses approach risk decisioning, moving beyond fragmented data points and using a framework that puts identity insights as the core tenant for establishing trust.”

The report highlights “Silver Bullet Configs,” a service found on Telegram that provides users with device configurations that allow them to bypass security measures on many digital platforms. These configurations equip individuals with the ability to test compromised payment information and login credentials with minimal technical expertise.

Generational data reveals a concerning trend: younger consumers are significantly more likely to engage in payment fraud. Among those who personally participated in or know someone who has participated in payment fraud (23% of all surveyed consumers), 32% of Gen Z and 43% of Millennials admitted to personally participating in payment fraud schemes.

Industry-specific data from the Sift Global Network shows payment fraud attack rates remained high at 3.3% in 2024, with certain sectors experiencing disproportionate targeting:

• Ticketing & Reservations: 7.4% attack rate
• Social Media: 5.2% attack rate
• Transportation: 4.8% attack rate
• Payment Service Providers: 4.7% attack rate
• Online Travel Agencies & Services: 4.3% attack rate

Alternative payment methods also faced higher fraud risks, with loyalty points (6.19%), financing options (5.15%), and prepaid cards (4%) experiencing the highest fraud rates among payment types. Traditional payment methods like credit cards (1.31%) and debit cards (1.6%) saw comparatively lower fraud rates.

The full Q1 2025 Digital Trust Index is available here.