Deepfake fraud attempts surge 2137% in three years, Signicat research finds
A new report from digital identity firm Signicat shows AI-generated deepfakes have become the most common form of digital identity fraud facing financial and payment firms, with implications for sectors including gambling that rely on KYC checks.
Deepfake-related fraud attempts against financial and payment businesses have risen by 2137% over the past three years, according to research published by digital identity company Signicat.
The findings come from Signicat’s report, The Battle Against AI-Driven Identity Fraud, based on a survey of more than 1,200 fraud decision-makers at banks, insurers, payment providers and fintech firms across seven European countries, including the UK. The research was carried out by Censuswide and gathered via an online survey in 2024.
According to the report, deepfakes now account for around 6.5% of all fraud attempts detected, up from just 0.1% three years ago, roughly one in every 15 cases. Account takeover remains the most common fraud type overall, followed by card payment fraud and phishing, but deepfakes have moved into the top three types of identity fraud affecting the sector, a category they did not previously feature in.
Presentation and injection attacks
Signicat’s report identifies two main deepfake attack methods. Presentation attacks involve fraudsters using masks, makeup or a screen displaying a real-time deepfake to spoof another person’s identity, often to target account takeovers or fraudulent loan applications. Injection attacks involve inserting malware or manipulated content, such as pre-recorded deepfake video, directly into onboarding or KYC processes used by banks, fintechs and telecoms providers.
Detection tools lagging behind
The report notes that AI now accounts for 42.5% of detected fraud attempts in the financial sector, yet only 22% of institutions have adopted AI-based fraud prevention tools, leaving a gap that could be exploited as attack methods grow more sophisticated.
Pinar Alpay, Chief Product and Marketing Officer at Signicat, said fraudsters are increasingly using AI techniques that traditional detection systems can no longer fully identify, and called for organisations to adopt detection systems combining AI, biometrics and identity verification. She said a multi-layered approach involving early risk assessment, facial biometric authentication and continuous monitoring, properly orchestrated together, is essential for effective protection.
Signicat’s report frames the rise in deepfake fraud as part of a wider trend of AI-driven identity fraud and urges financial institutions to strengthen fraud detection systems, improve staff and customer awareness, and invest further in AI-based prevention tools.