Deepfakes are no longer a problem of the future: attacks have surged by 2000% in just three years

With an alarming rise in AI-driven fraud—such as the increasingly prevalent deepfakes—financial and tech organisations are facing one of the greatest challenges of the digital age.  

AI and fraud: an inevitable relationship? 

A

I can be a double-edged sword in the fight against fraud. On the one hand, it provides advanced tools to detect suspicious patterns and prevent attacks. On the other, it enables fraudsters to develop more sophisticated techniques to bypass security systems. 

Current data shows that 42.5% of detected fraud involves AI, with a success rate of 29% (Signicat). This means that while defences are improving, attackers continue to find effective ways to exploit vulnerabilities. One of the most concerning developments is the rise in deepfake usage, now accounting for 6.5% of fraud attempts. This may seem like a small figure, but it represents a staggering 2,137% increase over the past three years. 

Deepfakes have evolved from a technological curiosity to a powerful tool for identity theft and other types of fraud. This technique, based on advanced neural networks, enables the creation of highly realistic fake videos and images. As a result, fraud attempts using deepfakes have surged by 10–12% in key industries such as banking and fintech. 

The use of deepfakes allows criminals to bypass biometric verification systems, forge identity documents, and carry out highly convincing social engineering attacks. Both businesses and customers face financial losses and reputational damage if effective preventive measures are not implemented. 

Discover how TrustCloud combats deepfake-based fraud and prevents massive financial losses for your business 

The rise of deepfakes: more sophisticated, harder to detect 

The fraud landscape has changed dramatically over the past three years. While identity document forgery, synthetic identity fraud, and account takeover (ATO) were once the primary threats, fraudsters have now shifted towards more sophisticated methods, including deepfakes. Although ATO and various forms of social engineering fraud remain significant, deepfakes are rapidly climbing the ranks as a preferred tool among cybercriminals. 

Businesses are increasingly aware of digital fraud’s ability to adapt and refine itself over time, tailoring attacks to the specific characteristics of each industry. A clear sign of this growing concern is that 66% of decision-makers now consider AI-driven identity fraud a far greater threat than it was three years ago. The speed at which these techniques evolve and adapt to different sectors underscores the urgent need for advanced security solutions that are just as dynamic and effective in detecting and preventing these attacks. 

The strengths of video identification: intelligent deepfake detection solutions 

Advanced video identification solutions are among the most effective defences against the growing threat of deepfakes. These technologies allow real-time identity authentication while analysing data to detect fraud attempts and synthetic content. 

AI-powered algorithms enhance the detection of image and video manipulation by assessing whether a face is genuine or artificially generated. These solutions not only verify the authenticity of documents and user identities but also identify unusual patterns that may indicate impersonation attempts. 

TrustCloud has developed an automated deepfake detection system that safeguards user identities and strengthens critical processes such as video identification, KYC (Know Your Customer), and KYB (Know Your Business). Its technology integrates seamlessly into financial and business operations, ensuring that any attempt at manipulation is swiftly and accurately detected. Additionally, its team of cybersecurity and AI experts continuously refines these systems to stay one step ahead of cybercriminals. 

How businesses can tackle this threat 

Given the current landscape, organisations must adopt proactive measures to mitigate the risks associated with AI-driven fraud. Some strategies are well known, but they bear repeating. 

• Leveraging AI for fraud detection 

The same technologies criminals use to attack can also be used for defence. Machine learning algorithms can analyse vast amounts of data and detect anomalies in real time. 

• Enhancing authentication and Identity Verification 

Methods such as multi-factor authentication (MFA), biometric liveness detection, and behavioural analysis can significantly reduce fraud risks. A well-designed, proactive, and tailored security strategy will make all the difference. 

• Partnering with cybersecurity experts 

Working with specialised providers and sharing intelligence on emerging threats can enhance an organisation’s ability to respond to new types of fraud. 

• Training and awareness 

Educating employees and customers is key to recognising fraud indicators and responding swiftly to potential attacks. Despite efforts in security awareness and prevention, most fraud cases still occur due to poor handling of private information and human error. 

The evolution of fraud techniques—particularly the rise of deepfakes and other advanced tactics—poses a serious challenge to entire industries. However, by leveraging AI for fraud prevention, strengthening authentication strategies, and enhancing threat detection, businesses can effectively safeguard their operations. 

Staying ahead of technological advancements and adopting a proactive approach to fraud prevention is essential. Digital security is no longer optional—it is a necessity in today’s hyper-connected world. 

Request a demo of TrustCloud VideoID today