AU10TIX's Q3 2024 indicates a rise in SM attacks before the US election

The report analyses global transaction data from July to September 2024, highlighting trends in organised identity fraud. Notably, automated bot attacks against social media rose to 28% of all attacks in Q3, up from 3% in Q1, coinciding with the upcoming US presidential election. It also reveals rapid advancements in AI-powered impersonation bots and deepfake technology, including synthetic selfies that can bypass top verification systems.

Advancements in AI have led to widespread identity fraud, with attackers launching automated mega-attacks targeting payment and social media companies. In Q3 2024, AU10TIX reported a rise in bot attacks and deepfakes aimed at creating fake social media accounts, employing advanced evasion tactics. This surge, which began in March 2024, peaked in September, as bots spread disinformation before the US election.

A significant Q3 development was the introduction of synthetic selfies. Traditionally, selfies were rarely used for fraud due to facial matching technology. However, fraudsters are now leveraging advanced technology to create perfect deepfakes that align with synthetic IDs, enabling them to bypass automated Know Your Customer (KYC) processes.

20% increase in “image template” attacks

AU10TIX reported a 20% increase in "image template" attacks, with AI creating variations of synthetic identities using the same ID template, primarily in APAC and North America. Conversely, fraud rates in the payments sector decreased from 52% in Q2 to 39% in Q3 due to better self-regulation and law enforcement. However, fraudsters are now targeting less regulated areas, like the crypto market, which represented 31% of Q3 attacks.

AU10TIX's Q3 2024 Global Identity Fraud Report provides three practical insights to help organizations safeguard against identity fraud:

• implement behaviour-based detection: relying only on traditional document verification can be insufficient. To  overcome today's fraudsters, organizations should examine user behaviour and traffic patterns;

• use AI to counter AI: as fraudsters increasingly employ AI to amplify their attacks, it is essential to implement AI-driven solutions to stay ahead of these emerging threats;

• prepare for synthetic selfies: with the growing prevalence of synthetic selfies, traditional KYC methods may fall short. Organizations need to enhance their detection systems to identify these innovative forms of fraud.