AI-enabled identity fraud is rising as criminals increasingly target social media platforms in the lead-up to the 2024 US presidential election. Recent findings from AU10TIX’s Q3 2024 Global Identity Fraud Report show a 28% surge in social media-based fraud attacks, up from just 3% earlier this year.

This concerning trend underscores the evolving sophistication of fraud tactics, particularly as AI-generated bots and deepfake technology are employed to manipulate public discourse and exploit weak points in verification systems.

AI-Driven Fraud

The explosive growth in fraud, particularly on social media, is rooted in the ability of AI to industrialize identity theft. Fraudsters are using automated tools to create thousands of fake accounts, many employing advanced generative AI elements to evade detection.

These attacks have reached new heights, with September marking a peak in fraudulent activity. According to the report, some of these fraudulent accounts even spread disinformation ahead of the election, adding a dangerous dimension to online interactions.

The Q3 2024 report highlights a sharp increase in fraud attempts aimed at social media platforms, particularly those that incorporate deepfake technologies.

Fraudsters now create entirely synthetic selfies to match fake identities, bypassing traditional verification methods with ease. These deepfake "selfies" are now sophisticated enough to outsmart many automated Know Your Customer systems.

Fraudsters vs. Security Systems

The growing use of AI in fraud is creating an arms race between criminals and companies. AI-driven bots can now launch large-scale attacks, and the rise in synthetic selfies, completely fabricated using deepfake technology, is a direct response to increasingly sophisticated security measures. While AI-powered fraud tools help fraudsters stay ahead, businesses must adopt equally advanced AI solutions to defend themselves.

Traditional document verification is no longer enough. Companies need to analyze user behavior and traffic to spot abnormal patterns and detect fraud. Interestingly, while social media fraud spiked in Q3, fraud in the payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term sector saw a significant drop from 52% in Q2 to 39% in Q3.

AU10TIX attributes this decline to self-regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term efforts and law enforcement action, though it notes that criminals are shifting their focus to less regulated markets like cryptocurrency, which accounted for 31% of all fraud attacks in the third quarter.

Despite these challenges, the payments industry has reportedly made notable progress in reducing fraud, but crypto remains a growing target.