While over 76% of fraud decision-makers recognise the growing threat of AI in fraud, only 22% of organisations have started implementing AI-driven fraud prevention measures, according to Signicat’s report The Battle Against AI-driven Identity Fraud.
“Despite the alarming rise in AI-driven identity fraud techniques like deepfakes, most organisations are stuck in the planning phase,” said Pinar Alpay, Chief Product & Marketing Officer at Signicat.
“The gap between awareness and action is widening, creating a ticking time bomb, especially for the financial sector and other regulated industries,” she added.
The research surveyed over 1,200 fraud decision-makers across banks, fintechs, payment providers, and insurance companies in Europe.
The report highlights that organisations are aware of the problem but struggle to implement the necessary defences due to: lack of expertise: 76% of fraud decision-makers cite inadequate skills as a major barrier; lack of time: 74% admit that they do not have the time to address the problem with the urgency it requires; and budget shortfalls: 76% report insufficient funding to deploy robust fraud prevention technologies
As organisations face the challenges of 2025, the report warns that fraudsters are set to leverage AI to unprecedented levels, combining scale with sophistication.
Deepfake attacks, which have grown by 2137% over the past three years according to Signicat’s data, are just one example of how rapidly AI-driven fraud techniques are advancing.
To stay ahead of fraudsters, companies must act swiftly by: prioritise multi-layered defence approach: From early risk assessment to robust identity verification and authentication tools combined with data enrichment to ongoing monitoring for a comprehensive approach covering the primary vulnerable fronts; investing in AI-driven fraud prevention; and building in-house awareness and partnering with trusted vendors: A proactive approach to staff training and external collaboration is key to managing this evolving threat landscape.
“Just as our industry is constantly updating and preparing for new challenges, companies must do the same. Relying on obsolete solutions is the opposite of what’s needed. Organisations must invest in new technologies that enable AI-based fraud detection,” Alpay said.
“According to our own data, deepfake attacks only accounted for 0.1% of all fraud attempts we detected three years ago, but today they represent around 6.5%, which is an increase of 2137% in the last three years’,” she added.
