AI is reshaping identity crime as attackers move from volume to precision, as illustrated in Sumsub's Identity Fraud Report 2025-2026
LONDON, Nov. 25, 2025 /PRNewswire/ -- Sumsub, a global leader in verification and fraud prevention, today released its latest Identity Fraud Report for 2025-2026.
This study of global* data analyses millions of verification checks and 4,000,000+ fraud attempts between 2024-2025*. The report blends international and regional dynamics with findings from Sumsub's Fraud Exposure Survey 2025, featuring responses from 300+ risk professionals and 1,200+ end users.
The study finds that sophisticated fraud - multi-step, coordinated attacks that combine several advanced techniques within a single verification attempt - has risen 180% globally in 2025. This is the Sophistication Shift: fraud operations are increasingly designed for higher success rates, higher financial impact and greater resistance to traditional controls, meaning that fraudsters now need far fewer attempts to carry out a successful attack.
Key 2025 findings
Scammers are taking advantage of Big Tech's race for AI realism to generate more effective fraud materials. Household name tools like ChatGPT and Gemini are now responsible for 2% of all falsified documents processed globally and anticipated to drive double-digit growth for this fraud in 2026.
Europe's fraud paradox
Total fraud rates in Europe are decreasing, yet Europeans are increasingly susceptible to greater damages from fraud. Complex regulatory systems give fraudsters more vectors for attack. Combined with a reliance on manual and external solutions, criminals are presented with the perfect environment to deploy realistic AI fraud.
"The traditional measures of success in fraud prevention are quickly losing meaning," said Pavel Goldman-Kalaydin, Head of AI/ML at Sumsub. "The threat has shifted from quantity to quality, and resilience now depends on how quickly organisations can detect anomalies, analyse behavioural data and adapt their defences to emerging threats in real time."
Industry impact
"Despite greater awareness, the gap between recognition and real-world application remains problematic," said Jacob Thompson, VP of Sales at Sumsub. "Nearly 3 in 5 European consumers were victims of fraud in 2025. For now, the most visible shift is not in how much fraud exists, but how efficiently it is executed."
Future outlook
Sophistication Shift: In 2026, total fraud rates are expected to decrease or remain steady. However, there will be a smaller number of criminals executing more damaging, higher-impact campaigns with more professionalised operations
Agentic fraud: professional fraud rings will increasingly use autonomous agents, systems increasingly able to execute sophisticated, end-to-end attacks with minimal human involvement.
Fraud industrialisation: automation will make cross-channel manipulation and orchestration more accessible. In turn, we will see synthetic identities and fraud-as-a-service toolkits enable attackers to deploy attacks involving multiple co-ordinated fake identities at scale.
Proactive compliance: Europe is already taking proactive measures to fight AI-enhanced fraud - the EU AI Act, Denmark's emerging deepfake legislation and even the UK's Online Safety Act are showing promising regulatory intent. But to effect real progress against rapidly advancing fraud, companies will need to work more closely with policymakers.
How the industry must react:
"AI reshapes both offence and defence," said Pavel Goldman-Kalaydin, Head of AI/ML at Sumsub. "Attackers gain deepfakes, synthetic IDs, and autonomous fraud agents; defenders gain behavior modeling, millisecond anomaly detection, and self-learning systems. The next frontier is verifying AI agents themselves - confirming not just who you are, but who acts on your behalf."
To explore the Sumsub Identity Fraud Report 2025-2026 in full detail, visit https://sumsub.com/fraud-report-2025/.
* Note on Sumsub's research methodology
Sumsub Identity Fraud Report 2025-2026 compares internal identity verification and user activity data from 2024 and 2025, with added 2023 data to observe trends. All insights included are for countries with significant user activity on Sumsub's platform. The data has been aggregated and anonymized, with 4,000,000+ fraud attempts analyzed. All graphs and infographics are based on the data of consenting customers.
Sumsub conducted a Fraud Exposure Survey in August 2025. The survey included 1,200+ end-users from Latin America, North America, Europe, Asia, Africa, and the Middle East, and 300+ fraud and risk professionals from companies of diverse sectors, including banking, crypto, payments, e-commerce, trading, and iGaming.
About Sumsub
Sumsub is a leading full-cycle verification platform that enables fraud-free, scalable compliance. Its adaptive, no-code solution covers everything from identity and business verification to ongoing monitoring " quickly adjusting to evolving risks, regulations, and market demands.
Recognised as a Leader by Gartner, Liminal, and KuppingerCole, Sumsub combines seamless integration with advanced fraud prevention to deliver industry-leading performance.
Over 4,000 clients -- including Bitpanda, Wirex, Avis, Bybit, Vodafone, Duolingo, Kaizen Gaming, and TransferGo -- trust Sumsub to streamline verification, prevent fraud, and drive growth. The platform's methodology follows leading global AML standards and regulations, and Sumsub has extensively engaged with leading research and public institutions like the UN, Statista, and INTERPOL.
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