Research: Global deepfake incidents surge tenfold
November 30, 2023
- The top-5 identity fraud types in 2023 are: AI-powered fraud, money muling networks, fake IDs, account takeovers and forced verification.
- There’s been a significant 10x increase in the number of deepfakes detected globally across all industries from 2022 to 2023, with notable regional differences: 1,740 per cent deepfake surge in North America, 1,530 per cent in APAC, 780 per cent in Europe (inc. the UK), 450 per cent in MEA and 410 per cent in Latin America.
- The country attacked by deepfakes the most is Spain, the most forged document worldwide is UAE passport, whereas Latin America is the region where fraud increased in every country.
- ID cards remain the most frequently exploited for identity fraud, accounting for nearly 75 per cent of all fraudulent activities involving identity documents.
- Online media is the industry with the highest identity fraud increase.
“The rise of artificial intelligence is reshaping how fraud is perpetrated and prevented. AI serves as a powerful tool both for anti-fraud solution providers and those committing identity fraud. Our internal statistics show an alarming tenfold increase in the number of AI-generated deepfakes across industries from 2022 to 2023. Deepfakes pave the way for identity theft, scams, and misinformation campaigns on an unprecedented scale,” commented Pavel Goldman-Kalaydin, Head of AI/ML at Sumsub.
AI will be a key focus of regulations in 2024, and companies should take note with the understanding that AI safety is set to become an integral part of their activities. In addition to the AI-powered fraud prevention tips, the report provides an exclusive overview of AI regulations. For instance, China is known to have pioneered deepfake regulation, with the “Regulations on the Administration of Deep Synthesis of Internet Information Services” approved by the Chinese Cyberspace Administration Authority (CAC) in December 2022 and having come into force in August 2023. In the report, readers will find a summary of the primary efforts to regulate deepfakes in other key jurisdictions – EU, UK and US.
- The largest identity fraud growth in the region over the past year was shown by Tanzania (1.1 per cent) and Ghana (0.93 per cent).
- Meanwhile, countries such as Qatar, South Africa, Saudi Arabia, and Mauritius consistently maintained fraud percentages below 1 per cent for three years.
- In the MEA region, the top-3 countries with the highest identity fraud rates are Tanzania, Kenya and Nigeria.
- Among African countries, South Africa (19.7 per cent) and Nigeria (11.5 per cent) have encountered a higher number of deepfake attacks compared to other countries
In 2023, identity fraud patterns continued to shift towards more complex and sophisticated techniques, fueling more advanced scams and money laundering techniques. Among the most common complex fraud schemes is money muling, where seemingly innocent individuals, known as money mules, are recruited to transfer illegally obtained funds, disguising their origin.
Another disturbing trend is forced verification, when individuals are manipulated into going through KYC for the benefit of fraudsters. This type of scam grew 305 per cent over 2022-2023, raising more concern among experts. Account takeover threat demonstrates growth as well: the number of incidents increased by 155 per cent in 2023. To tackle all these alarming trends, organizations need to implement stricter rules such as mandatory identification.
Overall, in the past three years the fraud landscape has evolved with the development of new technologies, signaling a growing concern for businesses and individuals alike. Based on Sumsub findings, the global rate of identity fraud nearly doubled from 2021 to 2023.
- The proliferation of account takeover and money muling schemes is expected to continue. Fraudsters will find innovative ways to exploit these tactics, necessitating more robust countermeasures and regulatory responses.
- In 2024, there will be an increased emphasis on non-document verification and the adoption of alternative methods for identity validation, providing diverse and robust options for confirming identities.
- Online media (such as social networks) are likely to implement stricter rules with mandatory identification, thus transforming the dynamics of online interactions.
- The possession of identity data is projected to shift from global storage to being mandatory for local authorities, enhancing data security, privacy, and local control over sensitive personal information.
- Network analysis will become indispensable in efficiently combating fraud, allowing organizations to uncover complex patterns and connections that are indicative of fraudulent activities.