Veriff's Insightful 2025 Identity Fraud Report
Veriff, a leader in identity verification and authentication, has unveiled its latest findings in online fraud through the 2025 Identity Fraud Report. This report offers valuable insights derived from an extensive analysis of customer data and research conducted over the previous year.
The Rampant Rise of Fraud
The statistics are alarming. The report reveals that in 2024, one in every twenty authentication attempts encountered was deemed fraudulent. This trend signals a significant 21% increase in online fraud when compared to the previous year's rate of 20%. U.S. businesses alone are feeling the financial strain, with reports indicating a staggering loss of up to 9 cents for every dollar earned due to fraudulent activities. As companies continue to embrace digital transformations, fraud tactics are expected to adapt and grow, making detection increasingly complex.
Impersonation Attacks and Deepfakes
Impersonation fraud remains the most common type of deception, accounting for over 82% of all fraudulent actions. The emergence of deepfakes has exacerbated this issue, leading to a noticeable uptick in their use. Moreover, while adversary-in-the-middle attacks are typically rare, they have surged by 46% in 2024, indicating that fraudsters are leveraging more advanced techniques.
E-commerce: A Major Target
E-commerce platforms have become a prime target for fraudsters, facing attack rates that are 18 times the global average. The financial services sector still ranks high among industry targets, but surprisingly, e-commerce witnessed a higher incidence of authorized fraud incidents. This platform has become an attractive hunting ground for fraudsters, with millions exchanged daily between merchants and consumers.
Account Takeover and Multi-Accounting Threats
Account takeover, where cybercriminals commandeer online accounts through stolen credentials, has seen a notable increase of 13% in 2024, while multi-accounting, the practice of creating multiple accounts to exploit various promotions, has grown by 10%. This highlights the creative strategies that cybercriminals employ to exploit weaknesses in user verification processes.
Preparing for the Future
According to Ira Bonder, Senior Fraud Group Manager for Veriff, “The evolution of fraud is frantic, fueled by technological advancements such as AI and deepfakes.” It's essential for businesses to understand the myriad of fraud types affecting them. Veriff proactively works to thwart thousands of fraudulent attempts daily, equipping their personnel and technology with the necessary insights to differentiate legitimate users from fraudsters.
About Veriff
Veriff stands out as the go-to identity verification and authentication partner for many state-of-the-art, growth-focused organizations spanning various industries including online marketplaces, financial services, gaming, and mobility sectors. Their platform utilizes cutting-edge technology that merges AI with human feedback, ensuring both efficiency and security.
Frequently Asked Questions
What does the Veriff 2025 Identity Fraud Report reveal?
The report indicates a 21% increase in online fraud, highlighting rising threats in various industries, particularly e-commerce and financial services.
How prevalent is impersonation fraud?
Impersonation fraud accounts for over 82% of all fraudulent attempts, showcasing a dominant threat in the online space.
What industries are most affected by online fraud?
E-commerce and financial services are among the most targeted industries, with e-commerce seeing particularly high rates of fraud.
What are account takeover and multi-accounting?
Account takeover involves cybercriminals gaining unauthorized access to online accounts, while multi-accounting refers to creating multiple accounts to exploit offers and bonuses.
How does Veriff combat fraud?
Veriff prevents thousands of fraud attempts daily by leveraging insights and advanced technologies to streamline user verification processes.
