Online identity verification company, Sumsub, has reported a dramatic tenfold increase in identity fraud cases in the past year. In its latest Identity Fraud Report, the company reveals an alarming surge in fraud cases, spotlighting the five most prevalent types of identity fraud: AI-powered fraud, money muling networks, fake IDs, account takeovers, and forced verifications.
The Rise of Deepfake Fraud
Perhaps the most shocking revelation from the report is the sharp rise in deepfake fraud cases in South Africa, which have increased by a staggering 1,200% over the past year. Deepfake technology, which uses artificial intelligence to create hyper-realistic but entirely fabricated images and videos, is increasingly being exploited by criminals to perpetrate identity fraud. The report also notes a significant 1,530% surge in deepfake cases in the Asia Pacific region from 2022 to 2023, demonstrating the global extent of this growing threat.
The Global Impact of AI-Powered Fraud
It's not just deepfake technology that's fuelling the rise in identity fraud. AI-powered fraud more broadly is becoming a major issue, particularly in the cryptocurrency industry. The report highlights how sophisticated AI technologies are being used to create fake identities and commit financial fraud on an unprecedented scale.
Identity Fraud: A Rising Global Phenomenon
Jarryd Jensen, the Business Development Manager for Africa at Sumsub, emphasizes that the surge in identity fraud is not confined to Africa but is a global issue. The report includes an analysis of fraud trends in various African countries, including Nigeria, Kenya, and South Africa, underlining that the rise in identity fraud is a worldwide phenomenon that requires a coordinated international response.