One verification firm’s user-base data showed a 10x–17x surge in deepfake incidents, in tandem with increased AI democratization and adoption.

In data analysis based on 2022/2023 aggregated and anonymized verification statistics on millions of clients from 28 worldwide industries and from around 2m fraud incidents, an identity/business verification platform has reported some findings on identity fraud and deepfake trends.

The data for Asia Pacific region (APAC) had shown a 1,530% surge in deepfake cases from 2022 to 2023, and growing sophistication in scams and money laundering cases globally.

Other key findings include:

    • From 2021 to 2023 data, clients from Indonesia, Hong Kong, and Cambodia were shown to have witnessed a more-than-two-fold increase in identity fraud. In the same period of analysis, Japan, Australia and Thailand clients had fraud rates at under 2%. Also in this period, online media was the industry with the highest identity fraud increase (274%)
    • 2023 data showed Bangladesh (5.44%) and Pakistan (4.59%) clients having the highest fraud rates in both APAC and the world. Data from Singapore showed a low fraud level of 0.89%.
    • From 2022 to 2023 data a 10x increase was noted in the number of deepfakes detected globally across all industries. Regionally, the surge was 1,740% in N. American clients, 1,530% in APAC clients, 780% in Europe (including UK) clients, 450% in MEA clients, and 410% in Latin American clients.
    • For 2023, data showed that the top five identity fraud types are: AI-powered fraud; money-muling[networks; fake IDs; account takeovers and forced verification.

The impact of AI on identity fraud

From the data, AI-driven fraud was noted as the most prominent challenge across various industries. The main target was the cryptoindustry,accounting for 88% of all deepfake cases in the 2023 data, followed by fintech (8%).

In APAC, data for Vietnam (especially due to its rapidly growing digital economy and increasingly digital-savvy population) and Japan clients (especially in the entertainment sector) ranked the highest in terms of deepfake fraud.

According to Penny Chai, Vice President (Business Development), Sumsub (APAC), which disclosed its data findings: “The key to ensuring that AI contributes positively to society lies in the establishment of robust regulations and policy guidelines. These measures are crucial for creating an environment conducive to responsible technology use.”

To combat the prevalence of AI-powered fraud, governments have been introducing measures and regulations reactively and then proactively.