Digital document manipulation using AI and deepfakes has emerged as the most significant threat facing the financial services industry as we approach 2025, according to a report from the Entrust Cybersecurity Institute.
The findings indicate that in 2024, a deepfake attack occurred every five minutes across various business sectors. Additionally, the use of digital document forgeries for identity verification during onboarding surged by 244% year-over-year. For the first time, digital document forgery overtook physical counterfeits, accounting for 57% of all document fraud. This represents a staggering 1,600% increase since 2021, when nearly all fraudulent documents were physical.
With the rise of AI-assisted fraud, criminals are employing more sophisticated techniques, particularly targeting National ID Cards (40.8% of global attacks). The report highlights that threat actors are utilizing “as-a-service” platforms for phishing, fraud, and ransomware, along with generative AI tools to create advanced digital forgeries and injection attacks.
AI-assisted deepfakes are flagged as a particular concern for global organizations. Traditional fraud tactics, such as phishing, are swiftly being overshadowed by hyper-realistic AI-generated deepfakes and synthetic identities. The proliferation of face-swap apps and GenAI tools has empowered fraudsters to execute increasingly credible biometric fraud attacks, including fraudulent account openings, account takeovers, phishing scams, and misinformation campaigns.
The financial services sector was the most targeted in 2024, with the cryptocurrency industry experiencing nearly double the number of fraud attempts compared to other sectors (9.5%). This was followed by lending and mortgages at 5.4%, and traditional banks at 5.3%. Crypto platforms reported the highest rate of fraudulent attempts, which increased by 50% year-over-year, from 6.4% in 2023 to 9.5% in 2024. Simultaneously, traditional banks faced a 13% rise in fraudulent onboarding attempts, coinciding with high inflation rates, leading to a surge in lending and mortgage scams.
“The drastic shift in the global fraud landscape, characterized by a significant rise in sophisticated, AI-powered attacks, is a warning that all business leaders must heed,” stated Simon Horswell, senior fraud specialist at Entrust. “This year’s data highlights an alarming trend, demonstrating how quickly fraudsters are evolving their techniques. These pervasive threats impact every sector, including business, government, and individuals. To stay ahead, security teams must proactively adapt their strategies, prioritize monitoring these emerging threats, and prepare their organizations for this new reality. It is no longer optional; it is imperative.”