#United States #New York #Identity Theft #Sumsub #Synthetic Fraud

Surge in Synthetic Identity Document Fraud in the U.S. Poses Risk to Diverse Industries

In the United States, identity fraud has hit alarming levels in early 2025, particularly in sectors such as e-commerce, fintech, healthtech, and edtech. A recent report by Sumsub, a leading player in identity verification, has based its findings on extensive data analytics conducted from January to March 2025, revealing a staggering 300% increase in synthetic identity document fraud. This rise is fueled significantly by advancements in artificial intelligence (AI) technologies, enabling fraudsters to create genuine-looking fake identity documents, such as passports and driver’s licenses, that can easily fool basic Know Your Customer (KYC) checks.

Understanding Synthetic Identity Document Fraud

Synthetic identity fraud differs from traditional identity theft in that it involves the creation of new identities, often by mixing real and fabricated data. In contrast, synthetic identity document fraud specifically deals with the production of forged documents generated through AI tools. With such realistic representations, fraudsters can utilize these fake identities to open accounts, perform fraudulent transactions, or bypass compliance checks, making it exceptionally difficult for businesses to detect the fraud unless they utilize sophisticated verification frameworks.

Recent Trends in the U.S.

According to Sumsub's findings:

• - The spike in synthetic identity document fraud was noted at 311% compared to the previous year, making it a significant threat to businesses operating in North America.
• - Instances of deepfake fraud also soared by an astonishing 1100%. This concerning trend indicates that generative AI technologies are increasingly being deployed to circumvent facial recognition and biometric security systems.

Industries severely impacted include:

• - E-Commerce: The convenience of online shopping and financial transactions has inadvertently allowed fraud rings to exploit vulnerabilities.
• - Healthtech: With the sector's rapid digital transformation following the COVID-19 pandemic, health technology services have become prime targets, witnessing a 384% increase in fraud attempts.
• - Edtech: As educational sectors shifted to online platforms, instances of identity fraud also escalated, highlighting a newfound vulnerability in digitally-driven learning environments.

Global Insights

The trend is not limited to the U.S.; it has emerged as a global issue, with regions like Ethiopia (2.17%), Pakistan (2.08%), and Nigeria (1.52%) becoming hotspots for synthetic identity document fraud. The proliferation of generative AI tools worldwide remains a critical factor, as these instruments allow individuals to fabricate identity documents with unprecedented ease and realism.

Notably, the criminal landscape is shifting, with fraud services forming a thriving industry of their own, commonly referred to as “Fraud-as-a-Service”. This growing accessibility of advanced tools enables would-be fraudsters to launch attacks with minimal technical know-how.

Call to Action for Businesses

To counter this rising tide of sophisticated fraud, Andrew Sever, the CEO of Sumsub, emphasizes the necessity of adopting intelligent, adaptable fraud prevention solutions. Traditional verification tools are quickly becoming obsolete in the face of these rapidly evolving threats. Businesses are urged to integrate comprehensive verification systems that include real-time multi-layered checks, forensic analyses of identity documents, and robust biometric defenses.

Conclusion

As artificial intelligence continues to evolve, so do the tactics employed by fraudsters. Organizations must respond dynamically to protect their operations and clients from this escalating threat. Sumsub will continue to innovate and invest in advanced forms of fraud detection and protection to stay ahead in the ever-changing landscape of identity verification.

For businesses striving to ensure compliance and safeguard user transactions, Sumsub’s comprehensive solutions—ranging from KYC and KYB processes to ongoing monitoring and fraud prevention—offer a strategic route to mitigating risks and enhancing security.