Sumsub, a global full-cycle verification platform, has released its fourth annual Identity Fraud Report, highlighting a staggering 393% growth in deepfake fraud and a 167% rise in identity fraud globally between 2023 and 2024.
The report, based on millions of verification checks and over 3 million fraud attempts, provides a comprehensive analysis of identity fraud dynamics worldwide and includes Sumsub’s Fraud Exposure Survey 2024, featuring insights from more than 200 risk professionals and 1,000 end users.
In Africa, the report revealed a 167% increase in identity fraud, with countries such as Niger, Angola, and South Africa showing an alarming fraud rate growth exceeding 300%. Nigeria, in particular, recorded the highest average fraud rate, with nearly 6% of all verifications flagged as fraudulent, marking a notable increase from the previous year.
One of the key findings of the report is that the accessibility of fraud technology has drastically reduced the cost of committing fraud, making it easier for criminals to target businesses. Fraudsters can invest just $1,000 and potentially cause up to $2.5 million in monthly business losses. The report emphasizes that Fraud-as-a-Service is becoming a growing concern, especially in Africa, where identity fraud continues to rise at an alarming pace.
The report also identified the five main types of fraud in 2024: forged documents (50% of all fraud attempts), chargebacks (15%), account takeovers (12%), deepfakes (7%), and fraudulent networks (4%). Notably, deepfake fraud saw a dramatic 4x increase globally year-over-year, affecting various industries worldwide.
In Africa, Nigeria leads the continent in overall fraud rate, with a rate of 5.91%, more than double that of the previous year. Other countries like Algeria, Tanzania, Madagascar, and Chad also reported significant increases in fraud rates. Kenya, Uganda, Niger, Cameroon, and Comoros also saw notable increases, with Kenya more than doubling its fraud incidence over the past three years.
The report highlights that the most affected sectors by identity fraud in 2024 include dating services (8.9% fraud rate), online media (7.7%), banking and insurance (2.7%), video gaming (2.3%), and cryptocurrency platforms (2.2%). Furthermore, industries with the highest identity fraud growth rates from 2023-2024 include dating (265%), online media (180%), banking and insurance (162%), fintech (156%), and edtech (144%).
Account takeover (ATO) attacks have become one of the most damaging forms of fraud, with cases surging by 250% year-over-year, a sharp rise compared to a 155% increase in the previous year. The Sumsub Fraud Exposure Survey 2024 found that businesses lost approximately $300,000 per fraud event in 2024, with nearly half of companies (45%) and end users (44%) worldwide reporting being victims of identity fraud at least once.
Andrew Sever, co-founder and CEO of Sumsub, commented on the findings: “In today’s digital world, identity fraud poses a serious threat to individuals and companies. In 2024, 67% of firms reported an increase in fraud. Our report has become a go-to resource for industry leaders, with previous editions cited by UNODC, Statista, Microsoft, and major media outlets. This year, we’ve expanded our research to include insights from both end-users and risk professionals, providing a detailed look at current fraud dynamics, future predictions, and actionable tips for businesses. As a full-cycle verification platform, we’re committed to sharing these insights to help the community unite against fraud.”
With the global landscape of identity fraud evolving rapidly, Sumsub’s 2024 report underscores the urgent need for businesses to invest in robust verification processes and fraud detection systems to protect themselves against increasingly sophisticated attacks.
