Fraudulent transactions in the first half of 2024 were up over 73 percent year over year, and suspected fraudulent transactions increased by over 84 percent, according to the 2024 Mid-Year Identity Fraud Review, released today by AuthenticID, a global identity verification and fraud prevention solution provider.

The report highlights the rise of deepfake technology and consumer sentiment regarding identity fraud and digital identity trends.

The data serves as a warning to businesses about the threats and “how customers respond to business’ responses posed by identity fraudsters,” the report stated.

The report offers comprehensive analysis of identity fraud trends based on two sources: internal proprietary data anonymized and analyzed, biometric authentication, and watchlist technologies from its clients; and insights from AuthenticID’s fraud surveys conducted in Q2 2024, surveying consumers in North America.

The surge in AI-enabled fraud and the increased use of deepfakes for identity fraud tactics like account takeover attacks and injection attacks have significantly impacted fraud trends and consumer sentiment.

Of those surveyed, 40 percent have already had their personal data exposed as part of a breach in 2024.

More than 90 percent of respondents could not select a real person from a line of deepfake headshots.

The threat of identity fraud impacts how they make purchases, open accounts and do business, 68 percent of respondents said.

“What we’ve seen thus far in 2024 is that identity crime will continue to hit record highs, targeting both businesses and consumers,” said Blair Cohen, AuthenticID founder and president. “With the proliferation of new, generative AI-powered tools for fraudsters, businesses and consumers alike face a significant challenge in the form of breaches and business attacks. But those same generative AI-powered tools can also stop fraud. It’s up to businesses to stay ahead of fraud as it continues to evolve—fast.”

The report documents consumer and business sentiment regarding digital identity trends, such as biometric authentication and the growth of mobile driver’s licenses (mDLs), with a notable shift in consumer openness to the adoption of digital identity credentials and biometric authentication to access accounts.

The full 2024 Mid-Year Identity Fraud Review is available to download at https://www.authenticid.com/2024-mid-year-fraud-review-report/.