The 2025 State of Identity Fraud Report: A Growing Concern for Businesses and Consumers
AUTHENTICID Releases Report Highlighting the Rise of Identity Fraud and Countermeasures
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 today by AuthenticID, a global leader in identity verification and fraud prevention solutions.
The report offers a pulse check for business and consumer identity fraud, delving into identity verification tactics and trends and cutting-edge technology that can fight the sophisticated fraud facing both consumers and businesses.
Quote from Fred Laluyaux, Co-Founder & CEO, Aera Technology
“Staying ahead of evolving strategies such as AI deepfake-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.”
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, paired with insights from AuthenticID’s annual fraud surveys of both fraud and technology professionals as well as consumers in North America.
Blair Cohen, AuthenticID Founder & President
“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. “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 State of Identity Fraud in 2024
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.
Notable Increases in Identity Fraud
- 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.
The Impact of Identity Fraud
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.
Staying Ahead of Evolving Strategies
“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 deepfake-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.”
Conclusion
The 2025 State of Identity Fraud Report highlights the growing concern of identity fraud and the need for businesses to stay ahead of evolving strategies to combat this threat. With the rise of deepfakes, AI-generated fraud, and biometric spoofs, it is more important than ever for businesses to invest in identity verification and fraud detection technology to protect their customers and their data.
FAQs
Q: What is the main takeaway from the 2025 State of Identity Fraud Report?
A: The report highlights the growing concern of identity fraud and the need for businesses to stay ahead of evolving strategies to combat this threat.
Q: What are the most common forms of identity fraud?
A: The report highlights the rise of deepfake and AI-generated fraud, biometric spoofs, and counterfeit ID fraud attempts.
Q: How can businesses stay ahead of evolving identity fraud strategies?
A: Businesses should embrace the mentality to ‘think like a hacker’ to combat new cyber threats and invest in identity verification and fraud detection technology to protect their customers and their data.
Q: What is the overall fraud rate according to the 2025 State of Identity Fraud Report?
A: The overall fraud rate climbed to 2.10%, marking the highest level observed by AuthenticID in the past three years.
