2 weeks ago
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PRESS RELEASE
LAS VEGAS, Oct. 30, 2024 /PRNewswire/ -- MONEY 20/20 -- AU10TIX, a global technology leader in identity verification and management, today released its Q3 2024 Global Identity Fraud Report at Money 20/20 USA in Las Vegas. Drawing insights from millions of transactions processed around the globe from July to September 2024, the report uncovers significant trends in large-scale organized identity fraud. This quarter, automated bot attacks targeting social media platforms surged in the lead-up to next week's US presidential election, with the sector accounting for 28% of all attacks in Q3, up from just 3% in Q1. The report also reveals a faster-than-anticipated leap in the sophistication of AI-powered impersonation bots and deepfake technology, including synthetic selfies that have shown the ability to bypass some leading verification systems.
Rapid developments in AI technology have enabled the industrialization of identity fraud, with bad actors launching automated mega-attacks of thousands of false identities targeting payments, crypto and social media companies all over the world. In Q3, AU10TIX observed an especially high number of bot attacks combined with deepfake content in attempts to open fake social media accounts at scale. Some of the attacks appeared to incorporate advanced randomized GenAI elements, marking a new level of automated detection evasion. This rapid growth began in March 2024 and peaked in September, with outlets like Associated Press reporting on bots spreading disinformation and manipulating public perception in the weeks leading up to the US election.
Another major Q3 development involved the debut of synthetic selfies. Selfies have historically been one of the least-used methods of fraud, due to the difficulty of outsmarting facial matching tech. However, fraudsters are now exploiting extremely sophisticated technology to create 100% deepfaked "selfies" that match the synthetic IDs they use to trick automated KYC processes.
"Fraudsters are evolving faster than ever, leveraging AI to scale and execute their attacks, especially in the social media and payments sectors," said Dan Yerushalmi, CEO of AU10TIX. "While companies are using AI to bolster security, criminals are weaponizing the same technology to create synthetic selfies and fake documents, making detection almost impossible. The only way to detect this type of fraud is by analyzing behavior at the traffic level, as AU10TIX does with our Serial Fraud Monitor. We are committed to continually advancing our detection methods to protect customers against this rapid evolution of fraud tactics, using a combination of advanced AI, biometric verification, and deepfake detection."
In addition to the increase in synthetic selfies, AU10TIX reported a 20% rise in the use of "image template" attacks by bad actors. This trend suggests that AI is being used to rapidly create variations of synthetic identities—including photos, document numbers, and other personal information—using the same ID template. The regional hotspots driving this change are APAC and North America; the surges have not been observed in other regions.
On a more positive note, fraud rates in the payments sector dropped from 52% in Q2 to 39% in Q3, which AU10TIX attributes to increased self-regulation and law enforcement interventions. Although the payments industry continued to be the most targeted segment, discouraged fraudsters shifted their attention to less regulated sectors like the crypto market, which accounted for 31% of Q3 attacks.
AU10TIX's Q3 2024 Global Identity Fraud Report offers three actionable insights to help organizations protect against identity fraud:
Adopt Behavior-Based Detection: Traditional document verification alone isn't enough. To catch today's sophisticated fraudsters, organizations must analyze user behavior and traffic patterns.
Use AI to Combat AI: As fraudsters deploy AI to scale attacks, it is critical to leverage AI-driven solutions to keep pace with these threats.
Be Ready for Synthetic Selfies: The rise in synthetic selfies means that relying on traditional KYC methods may no longer be effective. Organizations must enhance their detection systems to spot these new forms of fraud.
About AU10TIX
AU10TIX plays a pivotal role in establishing trust between individuals/companies and digital systems. Founded in 2002, it is the global leader in identity verification and management, protecting the world's largest brands against advanced fraud. The company's future-proof product portfolio helps businesses provide frictionless customer onboarding and verification in 4-8 seconds while staying ahead of emerging threats and evolving regulatory requirements. AU10TIX offers the world's only 100% automated global identity management system, as well as the industry's only solution that can detect organized mass attacks by analyzing traffic patterns and cross-checking data in a consortium of more than 60 major companies. With its deep roots in airport security, AU10TIX has authenticated billions of identities and prevented over $18 billion in identity fraud. AU10TIX is a subsidiary of ICTS International N.V. (OTCQB: ICTSF). Connect with AU10TIX on LinkedIn and on X at @AU10TIXLimited. For more information, visit AU10TIX.com.