According to Sumsub’s 2024 APAC Identity Fraud Report, global identity fraud rates have surged 136% since 2021, while APAC alone saw a staggering 121% increase in 2024. This growth is not merely quantitative, it is deeply qualitative. Modern identity fraud now includes AI-generated document forgeries, biometric spoofing, and deepfake-powered impersonations, with deepfakes now comprising 7% of all fraud attempts globally.
The rapid rise of FaaS has democratized cybercrime. For as little as $50, fraudsters can purchase comprehensive guides on the dark web or even rent out entire fraud toolkits. This low barrier to entry, combined with scalable automation, has led to the rise of fraud networks that target multiple platforms simultaneously. Sumsub reports that one in every 100 online users in 2024 was involved in a fraud network, highlighting just how systemic the issue has become.
Digital progress is a double-edged sword. Nowhere is this more apparent than in APAC, where initiatives like Singapore’s Smart Nation and Indonesia’s booming fintech sector have helped bring financial services to millions. However, these digital pathways also create new entry points for fraudsters. Singapore saw a 207% increase in identity fraud in 2024, closely followed by Indonesia (205%) and Thailand (201%).
Fintech and trading platforms are particularly exposed. In APAC, fraud rates in fintech doubled year-on-year, reaching 4.5%, with trading platforms slightly higher at 4.8%. The convergence of financial transactions, loosely regulated KYC processes, and high-volume user onboarding makes these sectors ripe for exploitation.
Deepfake fraud has exploded – rising 194% in APAC alone in 2024. In one alarming example, a finance director in Singapore was nearly defrauded of SG$670,000 via a deepfake video call. These cases illustrate a broader trend: cybercriminals now use generative AI to mimic voices, create synthetic identities, and forge convincing documents at scale. Entrust and Docusign report that 40% of all biometric fraud is now deepfake-related, with AI-driven fraud attempts up 2,137% over the last three years.
The financial costs are significant. Businesses lose an average of US$7 million annually to identity fraud, with 41% reporting direct losses over US$1 million and 15% facing equally steep indirect costs from reputational damage and remediation. For organizations with over 10,000 employees, losses can soar past US$50 million.
But the implications stretch beyond the balance sheet. The erosion of consumer trust, the operational drag of fraud remediation, and the reputational damage incurred all pose existential risks to companies built on digital engagement.
Despite the grim statistics, the fightback has begun – and technology is leading the charge. Organizations are increasingly confident that AI can help them beat AI. Over 70% of companies now view tech investments as the most effective fraud mitigation strategy, with 74% planning to increase their spending on identity verification solutions.
Modern ID verification (IDV) tools – leveraging biometric liveness detection, AI-powered deepfake detection, and adaptive authentication – offer a way forward. Organizations that have heavily invested in IDV tools report an average annual saving of US$8 million and are significantly more likely to outperform peers in fraud prevention, according to Docusign and Entrust’s global study.
Cybersecurity in the age of AI-enhanced fraud must be proactive, not reactive. That means:
- Real-time fraud detection using behavioral biometrics and machine learning
- Multifactor authentication (MFA) as a baseline, not a luxury
- Customer education to combat scams and phishing
- Cross-industry collaboration to share threat intelligence
- Public-private partnerships, such as Singapore’s Anti-Scam Command, which model effective inter-agency coordination
As APAC hurtles toward a digital-first future, trust becomes the currency of the financial ecosystem. Organizations must understand that fraud prevention and customer experience are not mutually exclusive. In fact, robust digital identity verification is fast becoming a competitive differentiator.
In a world where identity is both a gateway and a vulnerability, investing in smarter, AI-powered security infrastructure is not just good risk management – it is essential for growth, reputation, and long-term survival.