Six major trends in online fraud in 2025

1. Impersonation fraud: The persistent threat

Impersonation fraud remains the most prevalent type of online fraud, accounting for 82.47% of all fraud cases in 2024. This method involves using stolen or falsified identity information to pose as someone else, often with the help of counterfeit documents.

Although impersonation fraud experienced a slight decline compared to 2023 (84.06%), it remains a dominant threat. Businesses must continue to invest in robust identity verification systems capable of detecting document tampering, synthetic identities, and suspicious patterns.

2. Adversary-in-the-Middle fraud: A growing concern

Adversary-in-the-middle (AiTM) fraud, both physical and digital, is on the rise. While still a smaller proportion of overall fraud, these attacks are becoming increasingly sophisticated:

Physical AiTM Fraud rose from 0.98% in 2023 to 1.73% in 2024. Perhaps unsurprisingly, the iGaming sector experienced a significant rise in physical AiTM attacks during this period. With sign-up and other bonuses on offer, fraudsters have turned to multi-accounting, identity farming, and account takeover, using physical AiTM attacks to drive these tactics. In many cases, individuals are forced to provide access to their accounts or directly involved in these fraudulent schemes.

Digital AiTM Fraud, although still rare (0.06% in 2024), relies on phishing emails, AI-generated messages, or malware to intercept communication between users and businesses, gaining unauthorized access to accounts.

To address these growing threats, businesses in sectors like iGaming must implement robust defenses, including phishing-resistant multi-factor authentication (MFA), end-to-end encryption, and behavior monitoring, to detect and prevent fraud effectively.

3. Document fraud: An alarming increase

Document fraud continues to rise, now accounting for 16.7% of all fraud cases in 2024, compared to 14.72% in 2023. This type of fraud involves the use of manipulated or counterfeit documents to bypass identity verification systems.

A new layer of complexity is being introduced with the growing adoption of digital identity wallets. Gartner predicts that half a billion smartphone users will regularly use digital identity wallets by 2026. These electronic IDs (eIDs) allow users to store verified digital identities on their computer systems and devices, streamlining authentication across platforms.

For instance, the European Digital Identity Regulation enables EU citizens to use their digital IDs across national borders. While these wallets aim to increase security, they also introduce new vulnerabilities. Businesses must ensure they have the tools to verify and protect digital IDs, especially as they become integral to financial transactions and cross-border interactions. Importantly, organizations will need to maintain the ability to verify both printed and digital IDs as this transition takes hold.

4. Surge in account takeover and multi-accounting fraud

Account takeover (ATO) fraud continues to rise, with a 13% increase in cases compared to 2023. Cybercriminals use stolen credentials to access accounts and exploit them for financial gain. Similarly, multi-accounting, where fraudsters create numerous accounts to exploit promotions or bonuses, saw a 10% increase year-on-year.

Advanced behavioral analytics and proactive monitoring can help businesses identify unusual patterns and mitigate these risks before significant damage occurs.

5. Automation and AI’s role in fraud dynamics

Automation and AI are transforming the fraud landscape, with both fraudsters and financial institutions leveraging these technologies to gain an advantage. On the one hand, automation enables fraudsters to launch sophisticated attacks at scale, making it increasingly difficult for financial institutions to detect and prevent fraud. For instance, automated bots can be used wire fraud and conduct credential stuffing attacks, where stolen or leaked credentials are tested on multiple websites and services to gain unauthorized access. Deepfakes have been a persistent security challenge for online platforms, but the advent of generative AI has significantly amplified the threat. With advanced AI tools, criminals can now produce fake images, videos, and voice content that are strikingly realistic and more convincing than ever before. This technological leap not only makes it easier for bad actors to deceive individuals and organizations but also poses serious risks to identity verification processes, digital trust, and the broader online ecosystem.

On the other hand, financial institutions are adopting AI-powered anti-fraud solutions to enhance their fraud prevention efforts. These solutions can analyze vast amounts of customer data, identify patterns, and detect anomalies in real-time, enabling financial institutions to respond quickly to emerging threats. Moreover, AI-powered solutions can help reduce false positives, minimize manual reviews, and improve the customer experience.

However, the increasing dependence on AI and automation also raises concerns about the potential for AI-powered fraud attacks. For example, deepfakes, which are AI-generated fake images, videos, or audio recordings, can be used to trick customers and financial institutions into disclosing sensitive information. Therefore, financial institutions need to stay ahead of the artificial intelligence curve and invest in advanced AI-powered anti-fraud solutions that can detect and prevent these types of attacks.

As AI technology progresses, governments worldwide are introducing regulations to ensure innovation doesn’t come at the expense of security. The EU AI Act, the first comprehensive AI regulation, classifies AI applications by risk levels and enforces strict rules for high-risk systems like biometric identification and critical infrastructure. Compliance will be essential for businesses in the EU to avoid penalties or restrictions. While regulations like the EU AI Act aim to prevent harmful AI use, they pose compliance challenges, especially for companies with complex global operations. To navigate these changes, businesses should adopt flexible compliance tools and stay updated on evolving AI regulations, ensuring they remain compliant without disrupting their workflows.

6. E-commerce: The top target for authorized fraud scams

Ecommerce platforms have become a prime target for fraudsters, surpassing even financial services as the industry most impacted by authorized fraud. In fact, ecommerce experienced authorized fraud at more than 18 times the global average, highlighting the significant vulnerability of this sector. With millions of dollars transacted daily between merchants and customers, the rewards for fraudsters are substantial. Despite this, many ecommerce platforms still rely on relatively lightweight fraud defenses, leaving them exposed to increasingly sophisticated scams.

In 2024, the ecommerce industry experienced the highest rate of authorized fraud, with an astonishing 1.62% fraud rate—18 times the global average for this type of scam. Additionally, ecommerce ranked second in document fraud incidents, accounting for just over 20% of all fraudulent attacks recorded in the past year.

Regional breakdown of fraud trends in 2025

The Veriff Fraud Report 2025 reveals notable differences in fraud patterns across regions, emphasizing the importance of localized strategies to effectively combat these threats.

North America

Elevated document fraud

• Document fraud: In 2024, document fraud in North America was 40% higher than the global average, indicating a significant regional vulnerability to forged documents.
• Recommendation: Implement advanced document verification technologies and conduct regular training to recognize and prevent sophisticated forgery attempts.

United Kingdom and European Union

Rising impersonation fraud

• Impersonation fraud: The EU experienced a 16% increase in impersonation fraud in 2024 compared to 2023, underscoring the growing threat of identity theft in the region.
• Recommendation: Adopt robust identity verification processes, including biometric authentication and multi-factor verification, to effectively counteract impersonation attempts.

Latin America

Surge in fraudulent activities

• Overall fraud increase: Latin America saw a 32% rise in fraud attempts in 2024 compared to 2023, marking the most significant increase among all regions.
• Recommendation: Develop comprehensive fraud prevention strategies that include real-time monitoring, user education, and collaboration with international fraud intelligence networks to address the escalating threat landscape.

Understanding these regional nuances is crucial for businesses operating globally. Tailoring fraud prevention measures to address specific regional challenges can enhance security and reduce the risk of fraud.

How Veriff can help?

Your business must put the correct detection processes in place to prevent fraud, protect yourself from financial losses, and beat back financial crime. These processes and systems can stop fraudsters before they’re able to access a user’s account and can be used to resist all the major types of account takeover fraud.

If you want to discover more about how our class-leading solutions can help a financial services business like yours, talk to our fraud prevention experts today. We’d love to provide you with a personalized demo showing exactly how our solutions can help keep your business and customers safe. We offer a variety of plans to help you build your defenses and look to the future:

• Veriff Fraud Protect utilizes machine learning-powered checks, advanced fraud network mitigation strategies, and our team of in-house experts to help protect your organization against fraud.
• Fraud Intelligence - Veriff Fraud Intelligence enhances your ability to mitigate threats with enriched insights and a consolidated RiskScore to enable more effective investigation and decision-making.
• Biometric Authentication - Authenticate users promptly and securely across all stages of the user journey, ensuring seamless and stress-free experiences while preventing unauthorized access. Veriff’s secure and robust development kits create a controlled environment for identity verification, ensuring that fraudsters cannot digitally inject or manipulate content. This ensures businesses and their customers remain protected in an increasingly complex fraud landscape.

Although implementing verification systems involves an initial investment, the long-term advantages are substantial. A Forrester Consulting study found that Veriff's identity verification platform delivered a 195% return on investment (ROI) within three years, with a payback period of less than six months. This demonstrates how verification systems can improve user trust, minimize fraud, and increase platform profitability.

Conclusion

The Veriff Fraud Report 2025 underscores a key reality: proactive fraud prevention is not just about defense, it’s about staying ahead of increasingly sophisticated threats. As fraudsters leverage global trends like synthetic identity creation, AI-powered attacks, and adversary-in-the-middle tactics, businesses must adapt quickly to protect themselves and their customers.

Globally, fraudsters target vulnerabilities unique to each region:

• North America faces a disproportionate challenge with document fraud, necessitating robust verification systems for both digital and physical IDs.
• The UK and EU must contend with a surge in impersonation fraud while navigating stringent AI and data protection regulations, such as the EU AI Act.
• Latin America is experiencing the sharpest rise in fraud cases, including synthetic identity fraud and fraud-as-a-service platforms, calling for multi-layered prevention strategies.

At the same time, overarching global trends like the rise of automation in fraud dynamics and the increasing reliance on digital identity systems add complexity to the fight against fraud. The growing adoption of digital identity wallets, for example, enhances convenience but also introduces new attack vectors that businesses must address with cutting-edge technology.

By employing AI-driven analytics, implementing multi-factor authentication, and aligning with global compliance requirements, businesses can stay ahead of fraud trends. Collaboration across industries, regions, and governments is also crucial to sharing intelligence and combating fraud collectively.

The fight against fraud is an ongoing battle, but with the right strategies and partners like Veriff, businesses can protect their operations, build trust with customers, and thrive in an increasingly digital world.