New research has revealed the escalating cost of identity fraud and the impact it has on organisations. The research, a joint global study by Entrust and Docusign, showed the trade-offs enterprises face between security and customer experience.
The Future of Global Identity Verification research report reveals that identity fraud is a growing threat globally and across industries, with over two-thirds (69%) of organizations reporting increased fraud attempts. Organisations with over 5,000 employees have an annual direct identity fraud cost of $13 million on average – and the costs grow by multiples as the size of organizations increases. Among organisations with over 10,000 employees, 20% have an annual direct and indirect identity fraud cost of over $50 million.
With the rise in AI-assisted fraud, attacks are becoming more sophisticated and frequent. In the report, 51% of respondents said fraud is more common when using username and password alone than any other user authentication method, highlighting the vulnerability of the most basic single-factor authentication. In contrast, 21% of organizations reported fraud attempts against facial biometric liveness detection, reinforcing the effectiveness of advanced authentication solutions.
Tony Ball, President of Payments & Identity at Entrust, said: “A misconception about fraud prevention is that stronger security comes at the cost of user experience. Modern IDV solutions and adaptive authentication enable them both. End-users can verify their identity with a quick biometric selfie, while fraud checks such as device recognition, AI-powered deepfake detection run in the background. Adaptive authentication completes the identity lifecycle security and further enhances security by adjusting requirements based on risk signals, ensuring protection without unnecessary frictio ..
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