Identity fraud is no longer confined to isolated criminal activities; it has evolved into a massive, coordinated effort driven by bots and deepfake technology, according to AU10TIX's latest report.

The report, focussing on the second quarter, revealed a staggering rise in automated attacks, particularly targeting social media platforms and the financial sector. APAC has emerged as a hotspot for fraudulent activities amid cybercriminals' growing sophistication and the urgent need for advanced defenses.

Social Media and Financial Platforms

The Q2 report highlighted a concerning shift in identity fraud patterns, with social media platforms becoming a primary target. While only 3% of identity fraud attacks in Q1 2024 focused on social media, the number skyrocketed to 16% in Q2.

This surge reflects a global trend in which bots, automated programs designed to impersonate human behavior, are being deployed to create fake accounts, manipulate online discourse, and carry out financial fraud.

One of the driving forces behind these attacks is the rapid advancement in deepfake technology. Deepfakes enable cybercriminals to create highly realistic fake profiles, which can be used for disinformation, identity theft, and financial crimes like money laundering . These fake identities are particularly concerning when combined with bots, allowing attackers to scale their operations to unprecedented levels.

The report points to the APAC region as a focal point for the global identity fraud crisis. A coordinated "mega-attack" in Q2 2024 involved over 5,000 fraudulent onboarding attempts in the payments sector. This attack underscores how financial institutions in APAC are particularly vulnerable to large-scale bot-driven fraud.

Exacerbating the issue, the region experienced a staggering 1,530% increase in deep fake-related incidents and saw its fraud rate jump by 24% between 2022 and 2023. With 3.27% of all transactions now fraudulent, APAC has the highest identity fraud rate globally.

Fraud-as-a-Service Operations

The rise of AI-powered Fraud-as-a-Service operations has reportedly increased these attacks, making it easier for criminals to launch coordinated fraud campaigns. These developments have significant implications for financial institutions, social media platforms, and governments across the region.

Despite the escalating threats, there are signs of progress in the fight against cybercrime. AU10TIX noted that global operations led by INTERPOL, such as the HAECHI IV and First Light campaigns, have made significant strides in disrupting fraud networks. As a result, AU10TIX recorded a 17% decline in attacks on the payments sector during Q2.