AuthenticID Annual Report Reveals Surge in Identity-Based Fraud Across Businesses

2024 State of Identity Fraud Report highlights Synthetic Identities, Biometric Spoofing and Counterfeit ID fraud incidents are on the rise

Nearly half of businesses reported a growth in synthetic identity fraud, while biometric spoofs and counterfeit ID fraud attempts also increased, according to the 2024 State of Identity Fraud Report, released by AuthenticID, a global leader in identity proofing and fraud prevention solutions. With identity fraud skyrocketing across multiple industries globally, the report offers a pulse check for business and consumer identity fraud. It delves into identity verification challenges and the cutting-edge technology that can fight the sophisticated fraud facing both consumers and businesses.

“Protecting identity isn’t just good business, it’s crucial for individual identity security”

The report, created in partnership with PEAK IDV, delves into the most prevalent fraud tactics observed in 2023 and emerging tactics that may shape 2024. The report uses internal proprietary data anonymized and analyzed from AuthenticID’s ID verification, biometric authentication, and watchlist technologies. In addition, this proprietary data is paired with insights from AuthenticID’s annual fraud surveys conducted in Q4 2023, surveying both fraud and technology professionals as well as consumers in North America.

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The increases in identity-based fraud demonstrate the continued threats and preferred threat vectors of fraudsters. Among the noteworthy increases included in the report:

• 50 percent of businesses reported growth in synthetic fraud
• Biometric spoof fraud attempts tripled from 2022 to 2023
• Counterfeit ID fraud attempts are on the rise, specifically in the telecom and wireless industry: AuthenticID’s platform detected over 927,000 fraudulent IDs in 2023, an 80% increase from 2022.

Over 30% of businesses reported a growth in data and security breaches from 2022 and 2023, with the impact of synthetic fraud reaching beyond traditionally-impacted financial sector, to ecommerce, gaming, and more.

“In 2023, identity crime led to record levels of both breaches and business attacks,” said Blair Cohen, AuthenticID Founder & President. “These attacks and identity fraud crimes can lead to high economic losses and a loss of customer trust. Businesses need to do more than just stay vigilant; they must stay ahead of bad actors who now employ incredibly sophisticated technology with relative ease.”

Consumers also reported heightened levels of identity-focused attacks, with most consumers reporting being approached by bad actors at least six times per year via email, phone calls, texts, or social media.

“Protecting identity isn’t just good business, it’s crucial for individual identity security,” said Chris Borkenhagen, Chief Digital Officer/Information Security Officer at AuthenticID. “Bad actors continuously shift strategies to find and exploit any new opportunities, maximizing the data and money they can pull from their victims. Being aware of these trends, and how to stay agile enough to minimize the damage, is crucial for a business’ identity proofing strategy.”

AuthenticID will continue to drive innovation forward in its technology to ensure companies can stay ahead of changing fraud techniques and regulatory requirements while delivering best-in-class customer experience.

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