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Sumsub's Identity Fraud Report 2025-2026

Sumsub, a prominent player in fraud prevention and verification, has recently released its Identity Fraud Report for 2025-2026. This comprehensive analysis assesses patterns in identity fraud across multiple sectors and highlights the growing sophistication of fraudulent activities.

Key Insights from the Report

The report details the results obtained from a thorough review of millions of verification processes and over four million attempted frauds recorded between 2024 and 2025. Notable findings include:

• - Sophisticated Fraud Schemes: There has been a staggering 180% year-on-year surge in so-called ‘sophisticated’ fraud attacks, with multi-step schemes escalating from 10% to 28% of all incidents over the same period.
• - Corporate Vulnerabilities: In the 2025 survey, a considerable 52% of end users and 40% of companies reported having fallen victim to fraud. The prevalence of AI-assisted fraud is increasingly recognized, with 75% anticipating a rise in AI-driven incidents.
• - Identity Fraud Rates: Although the overall identity fraud rate decreased slightly from 2.6% to 2.2%, it still surpasses the figures reported in 2023, indicating a substantial ongoing issue.
• - Emergence of Fake Documents: The advent of AI tools has led to a new wave of document forgery, with instances of AI-assisted fake documents jumping from 0% to 2% in 2025.

Sector-Specific Findings

A closer look at sectors affected by fraud reveals alarming statistics:

• - Online Media and Dating: This sector stands out with a staggering 6.3% fraud rate.
• - Financial Services and Crypto: These sectors also show significant vulnerability with fraud rates of 2.7% and 2.2%, respectively.
• - Professional Services: Fields such as consulting and legal services faced fraud rates at 1.6%.
• - Video Gaming: This sector faced theft and manipulation once again, with a reported 1.6% impact.

Types of Fraud Strategies

The report identifies major fraud schemes:

• - First-party Fraud: The leading tactics here include synthetic identity creation (21%), chargeback fraud (16%), and application fraud (14%).
• - Third-party Fraud: This includes identity theft (28%) and account takeovers (19%), demonstrating the critical need for robust security measures.

Regional Highlights and Trends

The dynamics of fraud seem to vary significantly by region:

• - While both Europe and North America reported decreases in fraud rates, regions like Africa, APAC, and the Middle East experienced notable increases.
• - For instance, the Middle East saw the highest fraud rate with Iraq leading at 9.7%.
• - The scenario in APAC is rather alarming, with one in four respondents indicating attempts for money mule recruitment.

The Rise of AI in Fraud

The report warns of the growing role of AI in orchestrating fraud operations. Autonomous systems are now capable of conducting multifaceted attacks with minimal human input. This evolution has prompted calls for verification systems to adapt quickly and safeguard against such sophisticated threats.

Future Strategies for Fraud Prevention

As Sumsub prepares for 2026, it emphasizes the importance of evolving strategies:

• - Integrated Risk Intelligence: Compliance teams need to merge fraud detection with case management to become proactive risk intelligence units.
• - Adaptive Verification: Continuous assessment of risks using modern telemetry and behavioral data is essential.
• - AI Integration: Leveraging AI for both defense strategies will be crucial, especially as AI systems begin to represent users in transactions.

The findings of the report not only illuminate the intricate dynamics of identity fraud but also call upon businesses and regulators to prepare for a rapidly changing landscape. The complete report is available for free to those interested in the evolving fight against fraud.

For further details, visit Sumsub’s website to access the full report: Sumsub Identity Fraud Report 2025-2026.