Sumsub, a full-cycle verification platform, recently unveiled alarming data that shows an unprecedented rise in forced verification and deepfake-related fraud cases across the UK and Europe. The findings were drawn from the company’s anonymised verification data collected from its clients.
Forced verification emerged as a major global trend, with a staggering 1500% growth recorded in Germany. In the full year 2022, forced verification represented a mere 0.3% of all fraud cases, but this shot up to 5% in Q1 2023.
The report also indicated a significant rise in deepfake fraud cases in the UK, Germany, Italy and North America. In the UK, the proportion of deepfake cases jumped from 1.2% to 5.9%. Meanwhile, printed forgeries have seen a marked decrease, dropping from 16%-23% of all fraud in 2022, to a negligible 0.1% or less in the last quarter.
According to Sumsub’s internal statistics, various industries have seen a surge in digital fraud. The consulting industry saw fraud cases triple from 1% to 3%, while crypto services recorded a near doubling in fraud rates to reach 1.6% in Q1 2023. On the other hand, FinTech sector fraud figures reduced from 3% to 1%. The e-commerce industry saw a 1.5-fold growth, registering 1.3% of all fraud cases, and IT service platforms recorded a relatively high fraud rate of 1.5% in Q1 2023.
Analysing the document types used for online verification, Sumsub’s global data showed that the driver’s licence was the most popular document for identity checks in the UK and US. However, in continental Europe, ID cards were predominantly used. The least secure document was the passport in the EU and ID cards in the UK.
Commenting on the report, Sumsub’s head of AI & ML Pavel Goldman-Kalaydin said, “We’ve seen a pattern of forced verification globally. It is alarming that the proportion of such fraud is growing. Deepfakes have become easier to make and, consequently, their quantity has multiplied, as is also evident from the statistics.”
Keep up with all the latest FinTech news here
Copyright © 2023 FinTech Global