Signicat report warns of widening gap in AI fraud defences
A new report from digital identity firm Signicat finds most financial institutions are yet to deploy AI-driven fraud prevention despite rising awareness of the threat.
Digital identity company Signicat has published research showing that only 22% of organisations have implemented measures to counter AI-driven identity fraud, despite more than three-quarters of fraud decision-makers acknowledging the growing risk.
The study, titled The Battle Against AI-driven Identity Fraud, surveyed over 1,200 fraud decision-makers at banks, fintechs, payment providers and insurers across Europe. It found a clear disconnect between recognising the threat and taking concrete action to address it.
Barriers to action
According to the report, organisations cite a lack of specialist expertise (76%), insufficient time to respond with urgency (74%) and inadequate budgets (76%) as the main reasons for the slow uptake of AI fraud prevention tools.
Pinar Alpay, Chief Product & Marketing Officer at Signicat, said the gap between awareness and action is widening, describing it as a “ticking time bomb” for the financial sector and other regulated industries.
Deepfakes on the rise
Signicat’s data shows deepfake-related fraud attempts have increased by 2137% over the past three years, growing from 0.1% of detected fraud cases to around 6.5% today. The company expects fraudsters to increasingly combine scale and sophistication using AI throughout 2025.
Recommended response
The report urges organisations to adopt a multi-layered defence strategy that includes early risk assessment, identity verification, authentication, data enrichment and continuous monitoring. It also recommends investment in AI-based fraud detection tools, such as Signicat’s VideoID service, which is designed to identify document tampering and impersonation, including deepfakes.
Alpay added that companies relying on outdated fraud prevention systems risk falling behind, and that building internal awareness alongside partnerships with technology vendors will be key to managing the evolving threat.
Signicat, founded in 2006 and based in Trondheim, Norway, provides digital identity verification and authentication services to organisations across Europe. The company was acquired by Nordic Capital in 2019 and employs more than 450 people across 17 European offices.