Emerging Identity Scams and Fraud Trends for 2025

Fraudsters are always evolving: having to find new ways to exploit gaps in digital systems, their methods are growing increasingly sophisticated. As businesses and individuals rely more heavily on digital platforms, the risks associated with identity scams, account takeovers, and synthetic identity fraud are reaching unprecedented levels.

Looking ahead to 2025, the need for more complex and multi-layered fraud prevention systems is becoming a priority. Recent trends point to significant changes in how fraud is executed, especially in relation to AI-enabled scams and synthetic identities. With fraud-related financial losses projected to climb, businesses must stay informed about the latest threats and develop smarter strategies to mitigate them.

Fraud statistics and predictions

The data on digital fraud in 2024 paints a concerning picture, with cybercriminals becoming more efficient and adaptive. According to recent studies, global losses from online fraud exceeded billions of dollars, driven by surges in account takeovers, phishing schemes, and synthetic identity fraud. These crimes target a vast range of sectors, from banking to e-commerce, and their economic impact extends far beyond immediate financial losses.

In the e-commerce industry, refund/policy abuse was the most common type of fraud, experienced by almost 50% of online merchants worldwide in 2024, as reported by Statista. In addition, identity theft has risen during 2024, with as many as 842,000 cases reported during the first three quarters of the year. During that same period, credit card fraud was still the main concern, as well as synthetic account fraud (Source). 

2024 was also the time of major cyber attacks. For instance, US-based financial services and money transfer outfit MoneyGram – a high-profile cyber attack victim –  had its systems taken down in an apparent ransomware attack in September 2024.

In 2025, experts predict a further escalation in fraudulent activities. Factors contributing to this rise include the commoditization of fraud services, the proliferation of unregulated digital identity tools, and the continued exploitation of AI technology for malicious purposes. It’s not just the volume of fraud that is increasing; the complexity and scale of attacks are also evolving, creating challenges for businesses that rely on traditional security measures.

Industries such as fintech, payment services, and digital lending are expected to face the brunt of these attacks, as fraudsters target systems with high transaction volumes and sensitive customer data. With the increasing adoption of alternative payment methods, such as digital wallets and cryptocurrency, the attack surface for fraud is growing wider, further complicating the protection of identities and transactions.

Businesses must remain vigilant, as the cost of inaction is steep—not only in monetary terms but also in reputational damage. The current trends and threats will require forward-thinking solutions that anticipate fraud tactics before they cause harm.

Top fraud trends to watch out for in 2025

As fraudsters adapt to advancements in technology, the methods they employ become more sophisticated and harder to detect. The year 2025 is poised to bring a surge of new challenges, with cybercriminals leveraging cutting-edge tools and exploiting emerging systems. Below are the key fraud trends businesses should be prepared to face.

Rise of fraud-as-a-service

Fraud is becoming increasingly commoditized, with professional fraudsters offering their expertise as a service. Known as Fraud-as-a-Service, this trend involves providing tools like phishing kits, stolen credentials, and automated bots to others for a fee. This has lowered the barrier to entry for less experienced fraudsters, creating a wider pool of bad actors capable of launching sophisticated attacks. Businesses must contend with the industrialization of fraud, which makes malicious activities more accessible than ever.

Exploitation of AI tools for fraud

The rapid advancement of artificial intelligence has opened doors for both innovation and misuse. Fraudsters increasingly exploit AI-driven tools to execute sophisticated attacks, including deepfake impersonations, automated phishing schemes, social engineering and identity theft. In response, governments and industries are introducing AI-focused regulations to mitigate these threats. However, fraudsters are quick to adapt, finding new ways to evade safeguards, making it imperative for businesses to proactively monitor and address AI-driven risks.

eIDs and digital identity wallets

With the rise of electronic IDs (eIDs) and digital identity wallets, users are gaining more control over their personal information. These systems promise greater convenience and security, yet they also present new risks. Fraudsters may exploit vulnerabilities in these platforms to manipulate data or gain unauthorized access. As eIDs and digital wallets become more prevalent, safeguarding them will be critical for businesses managing identity verification.

The proliferation of synthetic identity fraud

Synthetic identity fraud is expected to reach new heights in 2025. Fraudsters continue to piece together fragmented data from breaches, public records, and other sources to create fake identities. These synthetic identities often appear legitimate at first glance, making them difficult to detect through traditional methods. Industries such as online lending, payment services, and cryptocurrency exchanges remain prime targets for this type of fraud.

Deepfake technology and image manipulation

The rapid advancement of deepfake technology has introduced a new layer of complexity to fraud. Criminals are now using AI-generated images and videos to impersonate individuals, bypassing visual verification systems. This trend is particularly concerning for industries that rely on image-based identity verification, such as online lending and payments. As deepfake technology becomes more accessible, businesses must adopt countermeasures to protect against these attacks.

OSINT-based fraud attacks

Fraudsters are increasingly leveraging Open Source Intelligence (OSINT) tools to gather information about individuals and organizations. Publicly available data, such as social media profiles and breached credentials, is being used to craft personalized phishing attacks and social engineering schemes. This trend underscores the need for businesses to stay vigilant about the information they share online and to enhance their defenses against OSINT-based threats.

Account takeover fraud upgrades 

Account takeover (ATO) fraud is evolving, with attackers using highly sophisticated tactics to trick victims into sharing critical personal information. These fraudsters often create extremely believable email communications and websites from trusted digital platforms, as well as exploiting weak links in security protocols to hijack accounts, leading to financial loss and reputational damage. Businesses must strengthen their defenses by analyzing patterns across multiple digital signals to detect and prevent such intrusions.

How digital fraud prevention and Identity Intelligence can help

In the battle against increasingly sophisticated fraud tactics, businesses need tools that provide deep insights into user behavior and identity. Traditional methods of fraud prevention are no longer sufficient, particularly when dealing with synthetic identities, gen-AI threats, and other emerging scams. Digital footprint analysis is the key element that can help spot fraudulent activity earlier.

Analyzing digital signals to uncover inconsistencies
Identity intelligence platforms offer the ability to analyze a range of digital signals, including phone numbers, email addresses, IP data, and device information. These signals provide critical insights into whether the identity presented aligns with its digital footprint. For example, if a phone number’s geolocation conflicts with the user's stated location, or if an email address has a history of breaches, this raises red flags. Such discrepancies are invaluable for identifying suspicious users or accounts before fraud can occur.

Enhancing risk assessment with OSINT
Open Source Intelligence (OSINT) gathers publicly available data to enrich risk assessment processes. OSINT can help identify patterns that are not immediately apparent through traditional verification methods. For instance, linked accounts, domain analysis, and usage patterns provide context about whether an identity is genuine or potentially fraudulent. OSINT-driven insights offer a thicker layer of protection for businesses so they can detect fraudsters who exploit fragmented data.

Detecting synthetic identities in real time
Synthetic identity fraud is particularly challenging to combat because it blends real and fake information to create personas that pass basic verification checks. Advanced fraud prevention systems utilize cross-referencing techniques to spot inconsistencies between different types of information gathered from email signals and phone signals. With the user’s entire digital footprint laid out, it’s a lot easier to identify anomalies that suggest the use of a synthetic identity.

One of the significant advantages of modern fraud prevention tools is their ability to strike a balance between security and user experience. Frictionless processes, such as silent onboarding, ensure that low-risk users can move through verification without unnecessary delays. At the same time, high-risk cases are flagged for further review, allowing businesses to focus their resources where they’re needed most.

Combating emerging identity fraud with Trustfull

Trustfull offers a vast suite of solutions to combat the challenges of modern identity scams while improving the efficiency of onboarding and fraud detection processes. These capabilities allow organizations to detect risks, verify users, and maintain a seamless customer experience.

With accurate Digital Footprint Analysis Trustfull enables businesses to analyze a wide range of digital signals, including email, phone, and IP data. By examining the connections between these elements, organizations can uncover patterns that reveal whether an identity aligns with the information provided during onboarding.

• Synthetic Identity Fraud Detection - with fraudsters becoming adept at blending real and fake data, identifying synthetic identities requires sophisticated techniques. Trustfull’s platform cross-references data points to identify inconsistencies, helping businesses stop fraud before it infiltrates their systems.
• Automated Risk Scoring Models - Trustfull offers ready-to-use risk scoring models that simplify the evaluation of user trustworthiness. For businesses with unique needs, customizable scoring options allow for precise assessments tailored to specific fraud prevention strategies.
• Accurate Login Authentication and Deep Analysis of User Behavior - monitoring login attempts, device usage, and browsing patterns help detect anomalies that could signal fraudulent activity or account takeovers. Trustfull helps companies spot anomalies in user behavior, from unusual keystrokes and browsing patterns to abnormal click rates and traffic spikes. 
• Advanced Browser and Device Intelligence - fraudsters often mask their true identities through modified browsers or spoofed devices. Trustfull conducts in-depth assessments of browser characteristics and device metadata to determine authenticity, providing an additional layer of protection.

As fraud continues to evolve, businesses must adapt to stay protected. Understanding emerging trends and leveraging advanced tools like digital signals' analysis and identity intelligence is critical for mitigating risks in 2025.

To learn how to strengthen your company’s defenses in 2025, reach out to our fraud prevention experts and explore your options.