The Asia Pacific region (APAC) is grappling with a dramatic rise in identity fraud, driven by deepfake technology and the accessibility of Fraud-as-a-Service (FaaS), according to Sumsub’s fourth annual Identity Fraud Report, released today. Identity fraud surged 121% year-on-year (YoY) in 2024, with Singapore, Thailand, and Indonesia experiencing spikes of 207%, 206%, and 201%, respectively.

Deepfake fraud is at the forefront of this crisis, rising 194% YoY in APAC and quadrupling globally to account for 7% of all fraud attempts in 2024.

Sophistication Meets Scale

“As the digital economy in APAC continues to grow, the evolving nature of fraud presents new challenges that businesses cannot afford to ignore,” said Penny Chai, Vice President of Business Development at Sumsub. “With tactics becoming more sophisticated and fraud becoming more accessible, the need for enhanced verification measures is more urgent than ever.”

Key findings in the report outline the top five fraud types of 2024:

• Fake documents: 50%
• Chargebacks: 15%
• Account takeovers: 12%
• Deepfakes: 7%
• Fraud networks: 4%

Industries such as dating, online media, and fintech saw fraud growth rates as high as 265%, 180%, and 156%, respectively. South Korea reported the most significant rise in deepfake attacks (735%), followed by Cambodia and Singapore (240% each).

The FaaS Economy: A Cybercrime Catalyst

The report highlights how FaaS platforms are fueling cybercrime, offering tools and services that make fraud accessible to virtually anyone. These platforms enable mass fraud operations with minimal technical expertise, amplifying attack volumes and complicating detection and mitigation.

“The scalability offered by FaaS is a game-changer for fraudsters, allowing them to execute large-scale operations with unprecedented ease,” the report notes.

In addition to mass fraud, the report highlights an increase in complex, coordinated schemes involving fraud networks and money mules. In Q1 2024, one in every 100 online platform users was linked to a fraud network, with seven of the top 10 jurisdictions for such networks located in APAC. These include Thailand, China, Bangladesh, Vietnam, Cambodia, Hong Kong, and Singapore.

Safeguarding APAC’s Digital Future

As APAC economies continue their digital transformation, the region faces escalating risks to its digital economy and consumer trust. Eighty-five percent of APAC respondents in Sumsub’s 2024 Fraud Exposure Survey expressed concern about deepfake fraud, citing its potential to impact critical areas such as elections.

Without robust identity verification frameworks and fraud prevention strategies, the report warns that cybercrime will continue to erode trust and undermine economic growth. Businesses and governments alike must act swiftly to combat the rising tide of fraud and secure the future of the digital economy.