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AuthenticID Annual Report Reveals Surge in Identity-Based Fraud Across Businesses

By Lauren Hinton · 31 January 2025

AuthenticID-Annual-Report--Reveals-Surge-in-Identity-Based--Fraud-Across-Businesses
Half of businesses reported a growth in deepfake and AI-generated fraud, alongside rising biometric spoofs and counterfeit ID fraud attempts, according to the 2025 State of Identity Fraud Report, released by AuthenticID, a global leader in identity verification and fraud prevention solutions. With identity fraud skyrocketing globally, the report offers a pulse check for business and consumer identity fraud. It delves into identity verification tactics and trends and cutting-edge technology that can fight the sophisticated fraud facing both consumers and businesses.  The report explores the most pervasive forms of fraud observed in 2024 and outlines emerging and growing fraud tactics that may impact 2025. The report analyzes internal proprietary data anonymized from AuthenticID’s identity verification and fraud detection technology. When paired with insights from AuthenticID’s annual fraud surveys of both fraud and technology professionals as well as consumers in North America, the report offers a comprehensive view of the fraud landscape.   “In 2024, we saw just how sophisticated fraud has now become: from deepfakes to sophisticated counterfeit IDs, generative AI has changed the identity fraud game,” said Blair Cohen, AuthenticID Founder & President. “It’s clear from our data and surveys that businesses may not even know the extent of the fraud they’re allowing to pass through their systems—making both vigilance and action crucial in 2025.”   The increases in identity-based fraud demonstrate the continued threats and preferred threat vectors of fraudsters. The overall fraud rate climbed to 2.10%, marking the highest level observed by AuthenticID in the past three years.  Among the other noteworthy increases included in the report:  
  • 70% of people are moderately or extremely worried about the threat of generative AI-based fraud and deepfakes online   
  • 68% of businesses have encountered workforce-related fraud, with impersonation of an employee as the most common fraud type 
  • Businesses observed a shocking 76% increase in phishing attempts 
The risk of identity-focused attacks and sophisticated phishing attempts is an alarming trend: most consumers report being approached by bad actors at least 34 times per year via email, phone calls, texts, or social media.   In 2024, AuthenticID detected 42% more fake IDs and suspicious biometric transactions processed through its verification system year-over-year, highlighting both the impact of fraud and adoption of verification solutions by businesses.   “In 2025, businesses should embrace the mentality to ‘think like a hacker,’ to combat new cyber threats,” said Chris Borkenhagen, Chief Digital Officer/Information Security Officer at AuthenticID. “Staying ahead of evolving strategies such as AI deep fake generated documents and biometrics, emerging technologies, and bad actor account takeover tactics are crucial in protecting your business, safeguarding data, and building trust with customers.”   AuthenticID will continue to drive innovation forward in its technology to ensure companies can stay ahead of changing fraud techniques and regulatory requirements while delivering best-in-class customer experience.  The full 2025 State of Identity Fraud report is available to download at https://www.authenticid.com/2025-state-of-identity-fraud-report/. 

Companies in this story: AuthenticID

People in this story: Chris Borkenhagen

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