By the time you finish reading this paragraph, a new synthetic identity may have just been created and approved by a financial institution somewhere in the world. Powered by generative AI, identity fraud is no longer a slow-moving threat. It’s fast, scalable, and dangerously convincing.
Fraud losses reported by consumers and companies in 2024 topped $12.5 billion, a 25% increase over 2023, according to KPMG.
Much of this surge is driven by deepfakes and AI-generated documents that can mimic real people with alarming accuracy. Criminals can now create entirely fake personas within minutes complete with doctored IDs, AI selfies and scripted responses designed to pass live authentication checks.
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