Artificial intelligence (AI) has emerged as a key component in the modern fight against fraud. However, it is unfortunately being used by both sides as AI-assisted fraud is growing more frequent and more sophisticated according to a new report from the think tank that provides insights to help organizations protect themselves, adapt, and grow, The Entrust Cybersecurity Institute.
In its sixth edition, the 2025 Identity Fraud Report found that attacks involving deepfakes happened every five minutes in 2024, and digital document forgeries increased by 244 per cent year over year. It is a staggering 1,600 per cent increase since 2021. This is the first time digital forgery has surpassed physical counterfeits, with digital attacks accounting for 57 per cent of all document fraud.
The adoption of AI by fraudsters has made it easier for them to make attacks on documents, with National ID Cards being targetted the most (40.8 per cent of attacks globally). Generative AI (GenAI) is being used to create sophisticated digital forgery and injection attacks through well known methods like phishing, fraud and ransomware.
Simon Horswell, senior fraud specialist at Entrust
“The drastic shift in the global fraud landscape, marked by a significant rise in sophisticated, AI-powered attacks, is a warning that all business leaders must heed,” said Simon Horswell, senior fraud specialist at Entrust.
“This year’s data underscores this alarming trend, highlighting how fraudsters are rapidly evolving their techniques. These threats are pervasive, touching every facet of business, government, and individuals alike. To stay ahead, security teams must proactively adapt their strategies, prioritize monitoring these emerging threats, and prepare their organisations to face this new reality. It’s no longer optional; it’s imperative.”
Struggles with onboarding
Digital identity verification is a vital part of the onboarding process. It is essential for preventing fraud and financial crime.
This first moment of interaction provides organisations with the opportunity to establish trust in an individual’s identity from day one. However, fraudsters are taking advantage of this as the growth of remote onboarding skyrockets.
Another way fraudsters are abusing financial firms is through AI-assisted deepfakes. Classical fraud tactics, like phishing, are relatively easy to discern, although they do continue to show some success. Hyper-realistic AI-generated deepfakes and synthetic identities, however, are increasingly allowing fraudsters to bypass biometric defensive measures.
The capacity for malicious usage is widespread and includes fraudulent account openings, account takeovers, phishing scams, and misinformation campaigns. Deepfake attacks occurred at a rate of one every five minutes in 2024.
A new target
Previously the gaming industry was a top target for bad actors. However, GenAI and other new tools have allowed criminals to turn their attention to financial services.
The top three most targeted industries in 2024 were cryptocurrency, seeing almost double the number of fraud attempts compared to any other industry (9.5 per cent), followed by lending and mortgages (5.4 per cent), and traditional banks (5.3 per cent).
Crypto platforms saw the highest rate of fraudulent activity attempts, which have risen 50 per cent year-over-year, from 6.4 per cent in 2023 to 9.5 per cent in 2024. This could be due to crypto reaching an all-time price high in 2024, making it very attractive to fraudsters.
At the same time, traditional banks experienced a 13 per cent increase from last year in fraudulent onboarding attempts, which happened as inflation rates were also high. Consequently, this has also led to a rise in lending and mortgage scams.
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