A report from Veriff shows that 1 in 20 online identity verification attempts are fraudulent in the financial services sector.

The report suggests that the increase in online identity verification fraud in the sector corresponds with the increased sophistication in AI-driven tools, and year-over-year, online identity fraud has risen by 21%. 

Key findings from the report include: 

• A majority of consumers (82%) will not sign up for a financial services platform without confidence in the entity’s fraud fraud protection capabilities. 
• 38% of consumers say biometrics are their top pick for securing interactions, with facial recognition as the most popular. 
• 60% of financial services firms report an increase in AI attacks. 
• Among financial service respondents in the United States, 64% are currently using AI as a mechanism for fraud prevention. 20% intend to do so in the next year.

Notably, the report found that one-third of consumers in the U.S. experienced some form of non-refundable financial loss due to fraud. Most financial service sector senior fraud decision-makers (89%) anticipate an increase in fraud for 2025, particularly those powered by AI.