LAS VEGAS, Oct. 30, 2024 /PRNewswire/ — Money 20/20 — AU10TIX, a global technology leader in identity verification and management, unveiled its Q3 2024 Global Identity Fraud Report at the Money 20/20 USA event in Las Vegas. This report, based on data from millions of transactions processed worldwide between July and September 2024, sheds light on the alarming trends in large-scale organized identity fraud.
The most striking revelation in the report is the sharp rise in automated bot attacks targeting social media platforms in the run-up to the upcoming US presidential election. Social media accounted for a staggering 28% of all attacks in Q3, a significant surge from just 3% in Q1. Moreover, the report highlights the rapid advancement in AI-powered impersonation bots and deepfake technology, with synthetic selfies proving to be especially adept at bypassing leading verification systems.
AI technology has revolutionized the landscape of identity fraud, allowing malicious actors to orchestrate large-scale attacks involving thousands of fake identities aimed at payments, crypto, and social media companies globally. AU10TIX noticed a substantial increase in bot attacks combined with deepfake content in Q3, particularly in fraudulent attempts to create fake social media accounts en masse. Some of these attacks even incorporated advanced randomized GenAI elements, signifying a new level of evasion in automated detection methods.
The introduction of synthetic selfies marked another significant development in Q3. Previously underutilized in fraudulent activities due to the complexity of fooling facial recognition technology, fraudsters are now leveraging highly sophisticated techniques to generate entirely fake “selfies” that match the synthetic IDs they use to deceive automated KYC processes.
Dan Yerushalmi, CEO of AU10TIX, commented on the evolving tactics of fraudsters, emphasizing the need for organizations to adapt swiftly to combat these threats. While companies are leveraging AI to enhance security measures, criminals are weaponizing the same technology to create synthetic identities that are almost impossible to detect. AU10TIX’s Serial Fraud Monitor analyzes behaviors at a granular level to detect and prevent these evolving fraud tactics using advanced AI, biometric verification, and deepfake detection.
In addition to synthetic selfies, AU10TIX noted a 20% increase in “image template” attacks, hinting at the widespread use of AI to generate variations of synthetic identities across APAC and North America, where these attacks were most prevalent. Meanwhile, the payments sector saw a decline in fraud rates from 52% in Q2 to 39% in Q3, attributed to enhanced self-regulation and the intervention of law enforcement agencies. However, fraudsters redirected their focus to less regulated industries like the crypto market, which witnessed a surge in attacks accounting for 31% in Q3.
AU10TIX’s Q3 2024 Global Identity Fraud Report offers actionable insights for organizations to safeguard against identity fraud:
1. Adopt Behavior-Based Detection: Relying solely on traditional document verification is insufficient. Organizations must analyze user behaviors and traffic patterns to identify sophisticated fraudsters effectively.
2. Use AI to Combat AI: Deploy AI-driven solutions to counteract the scaling of attacks by fraudsters and stay abreast of emerging threats.
3. Be Ready for Synthetic Selfies: Enhance detection systems to detect the rise of synthetic selfies, as traditional KYC methods may no longer suffice in identifying these fraudulent activities.
Founded in 2002, AU10TIX is at the forefront of establishing trust between individuals, companies, and digital systems. With a focus on identity verification and management, AU10TIX’s future-proof product portfolio enables businesses to streamline customer onboarding and verification processes while staying ahead of evolving threats and regulatory requirements. Leveraging advanced technology, AU10TIX has authenticated billions of identities, preventing over $18 billion in identity fraud. AU10TIX is a subsidiary of ICTS International N.V. (OTCQB: ICTSF) and continues to lead the charge in combating identity fraud through innovation and cutting-edge solutions. For more information, visit AU10TIX.com.