Veriff Annual Identity Fraud Report Reveals 20% Rise in Fraud

Payments, eCommerce, and video gaming platforms worst hit by alarming growth in fraud rates

Veriff, a global identity verification (IDV) provider, today announced the release of the Veriff Identity Fraud Report 2024. This analysis of global customer data presents a clear picture of the state of global identity fraud, including that overall fraud incidents are up 20% compared to last year’s findings. This overall increase is a result of the rise in impersonation fraud and the availability of more advanced attack methodologies and tools.

As more advanced technology becomes available to fraudsters, detecting and defending against attacks and infiltration attempts becomes more difficult. This is particularly true in the gaming, payments, and eCommerce industries, which each saw respective fraud increases over the past year of 47.5%, 54%, and 40.3% compared to data from 2022.

“Fraudsters have more tools than ever, such as generative AI and deepfakes-as-a-service platforms, readily accessible to manipulate and steal someone’s identity,” said David Divitt, Senior Director of Fraud Prevention and Experience, Veriff. “Our defenses are advancing as well. By combining robust IDV technology with human expertise, we can beat fraudsters and build a secure, yet convenient, user experience. In fact, biometric authentication is one of the most vital tools available to us in this fight against fraud.”

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Identity fraud has been the most common type of fraud in 2023. According to Veriff’s report, essentially 1 in 15 verification attempts (approximately 6%) was a person pretending to be someone else). Veriff’s data also revealed that 85% of fraud was categorized as impersonation fraud, which includes the use of someone else’s document or the person or document not being present for verification. The remaining 15% consisted of document fraud (13%) and digital and physical man-in-the-middle fraud (MITM) (2%). MITM involves coercing the victim to access accounts, make transactions, or even tech support scams.

Fraudsters are opportunistic and take advantage of the variety of tools at their disposal. They test out several methods on a target until they find a vulnerability, and then exploit that vulnerability until they are stopped. Therefore, it is impossible to adopt a one-size-fits-all approach or to imagine that a growing company can deploy just one tool to tackle every type of fraud it faces across a complex global and sectoral landscape. Instead, holistic fraud prevention strategies featuring a flexible, multi-faceted approach that employs biometrics, IDV, crosslinking and more are required to successfully combat fraudsters.

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