IDScan.net, a provider of AI-powered identity verification technology, has released its 2024 Annual ID Fraud Report, revealing a sharp rise in fraudulent ID activity across finance, logistics, and security-sensitive industries.
“Fraud is becoming more sophisticated, more frequent, and more difficult to detect using legacy systems,” said Jimmy Roussel, CEO at IDScan.net. “With fraudsters increasingly leveraging tools like generative AI and deepfakes to bypass traditional defenses, businesses must urgently invest in advanced identity verification solutions that can protect both their operations and customers.”
Drawing on data from more than 150 million ID scans conducted in 2024, the report shows a significant increase in fraud attempts driven by synthetic identities, deepfakes, and manipulated digital documents. Identity fraud reached its highest levels in Q4, with the finance and banking sector experiencing the most flagged IDs at 6.83 percent, and logistics close behind at 1.79 percent.
The average age of fraud attempts was 31, with a majority linked to male identities. Most fakes were associated with IDs claiming to originate from Colorado, Arizona, California, Nevada, or Texas.
Further data from the organization, which services some of the U.S.’s best-recognized brands across industries such as hospitality, gaming, cannabis, and retail, shows that 400,000 scanned IDs in 2024 were expired. As of January 2024, only 56 percent of IDs in circulation across the US were REAL ID-compliant. With the federal enforcement deadline now passed, REAL IDs were found to be 36 percent more likely to be flagged as fraudulent than non-compliant IDs, challenging perceptions of their added security.
Early data from 2025 suggests that ID fraud is continuing to increase across all sectors, especially those directly impacted by tariffs. This, in addition to increasingly sophisticated AI-powered fraud tools, will make utilizing secure ID fraud prevention solutions more essential than ever.
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