Respondents of one survey in 2024 had indicated such concerns, unless their digital transformation maturity had imbibed low-friction identity verification processes.

Based on a quantitative Nov–Dec 2024 survey of 1,413 decision makers* in eight markets^, a software firm that produces document signing and verification products has shared some findings about identity verification trends.

First, 69% of all respondents cited having experienced an increase in identity fraud attempts over the past two years. The average annual cost of identity fraud calculated from the responses has reached US$7m per business, factoring in chargebacks, remediation costs, and brand damage.

Second, 80% of respondents from Australia and Japan (deemed by the survey to represent the Asia Pacific region) had indicated that fraud prevention and customer experience were competing priorities, the highest among all the markets surveyed.

Other findings

Third, 51% of respondents from the financial services sectors had reported annual losses exceeding US$1m due to fraud “during account creation or payment authorization stages”, where fraudsters had exploited gaps in identity verification (IDV). Also:

51% of respondents reported fraud attempts involving usernames and passwords, compared to 21% of those that had reported using facial biometric liveness detection.

58% of respondents had expressed concern that stricter fraud controls could negatively affect the user experience: 70% had indicated that technology is the most effective way to mitigate identity fraud, and 74% had indicated plans to increase their investment in IDV.

Respondents that had indicated heavy investments in IDV tools had reported average savings of US$8m annually, compared to those that had reported an “average level” of IDV investment.

According to Kartik Krishnamurthy, Vice-President (Asia), Docusign, the firm that commissioned the survey: “As identity fraud escalates, enterprises are increasingly pressured to strike the right balance between security and seamless user experiences,” and that “stronger security doesn’t have to come at the cost of customer experience—in fact, it enhances it.”

*working in organizations with 150 to more-than-10,000 employees and “share the challenge of verifying their customers’ identities using manual (128), digital authentication (309) and specialized identity authentication solutions (976)

^including the US (304), the UK (227), Germany (233), France (226), Mexico (104), Brazil (104), Australia (102), Japan (113)