Socure's New Report Highlights Growing Threats from Fraudsters Targeting U.S. Government Programs

New Insights from Socure's Digital Identity Report

In a groundbreaking report released on May 15, 2025, Socure, a prominent digital identity verification and fraud prevention platform, highlighted alarming tactics employed by organized fraud rings, including those from nations such as China and Russia. As various government programs face mounting pressure from fraud attempts, these findings underline the urgent need for advanced identity verification solutions.

With over 190 countries served, Socure's report sheds light on a critical issue that plagues the U.S. public sector. The Government Accountability Office estimates that fraud costs the federal government about $500 billion annually. The COVID-19 pandemic exacerbated this situation, as outdated verification methods allowed a surge of fraudulent applications to slip through unnoticed.

Jordan Burris, Socure's Head of Public Sector, commented, "This research confirms what many of us have known – government agencies are under coordinated attack from nation-states bent on exploiting weaknesses in existing identity infrastructures. This issue transcends beyond business; it is about national security."

The report, titled "Fraud in Focus: Exposing Organized Fraud Patterns in Government Programs," uncovers three specific fraud rings. Two of them operate internationally, while the third is domestic. The tactics utilized by these fraudsters involve exploiting real Personally Identifiable Information (PII), utilizing fake business domains, and employing sophisticated methods to obscure their identities, such as shifting IP addresses via VPNs and submitting mismatched contact information.

Key Findings from Socure's Report:
1. International Targeting: Fraud rings operating from countries such as China and Russia are responsible for up to 12% of incoming applications for government services and loans.
2. Multi-Agency Hackers: Fraud attempts are often aimed at several government departments simultaneously. At least 25% of these attempts target more than one agency, showcasing the level of coordination involved.
3. Stolen Identities Dominance: Notably, fraudsters favor clicking on stolen identities over creating synthetic ones, showing a fourfold preference for the former.
4. Widespread Attacks: Financial institutions and various commercial entities are also being targeted using the same identities exploited against government programs.
5. Adaptation of Tactics: Fraudsters continuously alter email addresses, IP addresses, and domains linked to their identities multiple times a day, significantly complicating detection efforts.

To produce the report, Socure employed dual analyses across government programs designed to identify fraud patterns. The first analysis, executed between September 2024 and March 2025, utilized Socure’s Sigma Identity and Sigma Synthetic scores to categorize high-risk fraud instances. The second evaluation took place over a longer duration, from January 2023 through March 2025, focusing on international fraud attack infrastructures by leveraging IP geolocation and behavioral analysis.

These findings provide critical insights into the ever-evolving threat landscape within U.S. public sector services. Continued advancements in identity verification systems are imperative to counteract these fraud efforts. Already, Socure is trusted by more than 38 state and federal agencies to combat fraud effectively while ensuring access to essential government services.

SocureGov, their governmental division, holds a "Moderate" authorization status from the Federal Risk and Authorization Management Program (FedRAMP®) and is part of the Authorized Product List under the State Risk and Authorization Management (GovRAMP) Program.

In summary, the report serves as a clarion call for immediate investment in cutting-edge identity verification systems to safeguard against coordinated attacks on governmental frameworks. As Socure continues to grow, its solutions play a significant role in shaping the future of fraud prevention in both public and private sectors, ensuring that trust can thrive in these critical interactions.

For those interested in the full report, more details can be found on Socure's official website.