Strong growth in the number of fraud attempts using false identities

Artificial intelligence (AI) has led to a significant increase in the number of fraud attempts and cases of identity theft. Statistics show that AI fraud is becoming more widespread, with increasingly sophisticated methods for forging documents and creating synthetic identities.

Over the past three years, the number of identity fraud attempts has increased by 74% , and the number of so-called deep fake scams is growing very rapidly. Deep fake scams are sophisticated fraud attempts that use advanced AI to impersonate someone else.

Identity fraud can have different consequences:

• Falsification of documents: AI technology makes it possible to manipulate digital images and text in a way that is difficult to detect, resulting in authentic-looking documents.
• False identities: Using AI, dishonest individuals and criminals can generate fake identities that combine real and false information, making them harder to track.

Financial institutions, governments, and security experts view AI-powered identity fraud as a very serious threat and express concern that traditional security measures are no longer sufficient to protect against these advanced attacks.

This is revealed in a survey conducted by Signicat.

Artificial intelligence makes identity fraud easier

Artificial Intelligence identity fraud involves the use of advanced algorithms and machine learning technologies to manipulate and steal personal information. This can include the creation of false identities, forgery of documents, or unauthorized access to sensitive data.

Identity in the digital age goes far beyond traditional ID cards and passports. Digital identities are now linked to our online activities, social media profiles, and even biometric data. Verifying identity securely is essential to protect against potential threats like AI identity fraud.

Artificial intelligence plays a significant role in enabling sophisticated forms of identity fraud:

• Document forgery:AI algorithms can create highly convincing fake documents that pass traditional verification systems.
• Synthetic identities:Using AI, fraudsters can combine real and fake data to create new, synthetic identities that are difficult to trace.
• Deepfakes:Through AI technology, scammers can create realistic videos and audio recordings that mimic real individuals, making it challenging to distinguish between real and fake information.

To protect yourself from AI identity fraud, it is important to adopt effective verification and background check of candidates and staff. This will help ensure you have the right information about a person's background before making crucial decisions.

Combating identity fraud

The necessity of a comprehensive security strategy with integrated Artificial Intelligence systems

To effectively combat AI identity fraud, a holistic security strategy is essential. Integrating advanced AI systems can strengthen organizations’ ability to identify and prevent fraud attempts. Using machine learning and predictive analytics, we can continuously monitor and analyze suspicious activity, making it more difficult for fraudsters to succeed.

Methods to prevent and detect AI-powered identity fraud

A combination of multiple technologies and methods is needed to prevent and detect AI-driven identity fraud:

Biometrics : Use of. biometric authentication such as fingerprints, facial recognition, and voice biometrics provide an extra layer of security by authenticating users based on unique physical or behavioral characteristics.

Strong passwords : Implementing complex password requirements and two-factor authentication reduces the risk of unauthorized access.

Cognitive services : Use of AI tools such as natural language processing (NLP) to detect anomalies in text-based interactions can contribute to early detection of fraud attempts.

How can Manymore contribute to the fight against fraud?

Many organizations are now placing a stronger focus on combating AI identity fraud. This includes developing and implementing new security technologies and training employees to better understand the new threats posed by artificial intelligence.

Manymore offers, among other things, verified electronic signatures of agreements, and real-time identity verification for the entire Nordic region. These tools enable organizations to securely verify the identity of recruits and customers, while complying with strict regulatory requirements. Manymore's services help reduce the risk of AI fraud by providing robust mechanisms for both prevention and detection.

Recurring checks of both customers and employees are also something that is offered as part of the Manymore safeguarding package.

Internal training important

Another important point is that organizations should provide good information and training to employees and customers about the threat of AI fraud. Regular training programs can raise awareness and prepare everyone for potential threats.

Manymore offers a dedicated e-learning module where organizations can invite the entire organization to complete e-learning courses on internal procedures to combat fraud.

By combining these different approaches, we can be better equipped to resist the threats of AI-driven identity fraud.