The latest Annual Sumsub Report highlights a troubling trend in the Asia-Pacific (APAC) region, revealing a staggering 142% year-on-year increase in synthetic personal data attacks. This surge in fraud is largely attributed to advancements in artificial intelligence (AI) that have fostered a more sophisticated fraud ecosystem.
The report underscores a “Sophistication Shift” in digital fraud, with high-quality attacks rising by 180% globally. In APAC, synthetic personal data, characterized by the blending of fabricated identity information such as names, addresses, and identity document numbers, now constitutes 15.7% of all fraud attempts, ranking as the region's third-largest fraud category.
“The fraud landscape in APAC has changed faster in the past twelve months than in the previous five years combined,' called out Penny Chai, vice president for APAC at Sumsub.
"While many mature economies saw reductions in overall fraud rates, incidents like deepfakes and synthetic identities have escalated at an alarming pace.” Penny Chai
The findings are drawn from millions of verification checks and over 4 million global fraud attempts. The increase not only highlights the sophistication of current fraud techniques but also the urgent need for enhanced security measures.
Approximately 69% of businesses and 53% of end users in APAC reported falling victim to fraud, indicating a pervasive risk that demands immediate attention from cybersecurity leaders.
One major concern lies in the rapid rise of deepfake technology in countries such as the Maldives, Malaysia, and Sri Lanka. These jurisdictions recorded exceptional growth rates, making them hotspots for advanced impersonation scams, particularly in sectors reliant on digital identity verification.
Singapore, while experiencing a 12% decline in overall fraud growth, reported a 158% increase in deepfake incidents primarily linked to fraudulent e-wallet registrations.
The report also indicates a shift in the attitude towards fraud reporting. Nearly 60% of companies in APAC are now reporting incidents to law enforcement, contrasting sharply with Europe’s 29%. This shift signifies a recognition of fraud as a serious criminal offence rather than merely a compliance issue.
Despite the stringent regulations in place across regions like Singapore and Hong Kong, the ability of fraudsters to adapt their tactics poses ongoing challenges. As verification systems evolve, new methods such as telemetry tampering have emerged, enabling fraudsters to manipulate the very infrastructure that underpins identity checks.
For CISOs the message is clear: organisations must enhance their verification frameworks to combat these evolving threats effectively. A dynamic, multi-layered approach that incorporates real-time assessments and AI capabilities will be crucial in staying ahead of fraud tactics.
