AuthenticID’s latest annual report reveals a significant increase in identity-based fraud across businesses in 2024, with fake IDs and suspicious biometric transactions rising 42 percent year-over-year. The company’s 2025 State of Identity Fraud Report indicates that the overall fraud rate reached 2.10 percent, the highest level observed by AuthenticID in three years. The surge comes as AuthenticID has been expanding its presence in the digital identity space, including a recent partnership with the California DMV to enhance mobile driver’s license security.
The report highlights that half of businesses experienced growth in deepfake and AI-generated fraud, alongside increases in biometric spoofs and counterfeit ID fraud attempts. The findings support earlier predictions made by cybersecurity experts as early as 2020, who warned about the growing threat of deepfake technology to biometric systems. Workforce-related fraud affected 68 percent of businesses, with employee impersonation emerging as the most prevalent type.
Phishing attempts saw a dramatic 76 percent increase, according to the report’s findings, reflecting a broader trend of AI-powered phishing attacks that have impacted 96 percent of organizations in 2024. Consumer data indicates that individuals are targeted by bad actors approximately 34 times annually through various channels, including email, phone calls, texts, and social media. The report also notes that 70 percent of consumers express moderate to extreme concern about generative AI-based fraud and deepfakes online.
“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’s Founder and 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.”
Chris Borkenhagen, Chief Digital Officer/Information Security Officer at AuthenticID, emphasizes the importance of businesses adopting a “think like a hacker” mentality to combat emerging cyber threats. He advises organizations to stay ahead of evolving strategies, including AI deepfake-generated documents and biometrics, to protect their operations and maintain customer trust.
The report’s analysis indicates that the sophistication of fraud tactics continues to evolve, particularly with the integration of deepfakes and AI-generated documents. The development underscores the increasing importance of robust identity verification and fraud detection solutions in the current digital landscape, as organizations across sectors work to implement more sophisticated digital identity management systems and biometric authentication measures.
Sources: Business Wire, MX, Beamstart, Jack Henry
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