Shufti Pro identified various types of identity frauds in 2020 and as per the available information, businesses can expect an increase in criminal activities this year as well.

1. Global Identity
Fraud Report 2020
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2. Global Fraud Overview
02 | Global Fraud Overview
A 3.36% increase in identity fraud was observed in 2020
Egypt, Singapore and Switzerland experienced the highest
number of identity frauds
Biometric fraud attempts increased in 2020
Fake IDs, synthetic IDs, and doctored identity documents
were frequently used to manipulate document verification
checks
Frauds have become technically and strategically more
sophisticated than before

3. Biometric Fraud 2020
03 | Biometric Fraud 2020
Biometric fraud attempts are still not sophisticated enough
to beat biometric authentication
Biometric frauds skyrocketed in Australia, Cyprus, Egypt,
USA and Italy
Most common biometric frauds in 2020:
2D and 3D masks
Photoshopped images
Deep fakes

4. Photoshopped Images are
widely used for biometric fraud
04 | Photoshopped Images are widely used for biometric fraud
Intentionally modified or reconstructed digital images that
are difficult to identify with the naked eye
Fraudsters carry out financial crimes, access user identity,
disseminate incorrect information, and use the new fake
identity to defraud businesses.
Shufti Pro has trained AI models with real data to enhance
accuracy of the system
Identifies minor photo tweaks and captures fraud in the
blink of an eye

5. 2D and 3D Face Masks
These attacks spoof the facial verification system
Traditional spoof attacks incorporate printed pictures,
replaying a video, 2D and 3D face masks
End-users cut eye holes on a paper-backed photo to
manipulate the face verification system
2D and 3D face mask attacks became more sophisticated
in 2020
05 | 2D and 3D Face Masks

6. Deep Fakes - a facet of biometric
fraud
Videos that have been manipulated with deep learning
techniques to make people believe the false
Fraudsters edit certain words or statements in the videos
to make them more authentic
Cyber criminals use deepfakes to dodge liveness detection
checks
It is predicted that 180,000 deep fake videos of victims
will be online in 2021
06 | Deep Fakes - a facet of biometric fraud

7. 07 | AI-Powered Checks to Identify Biometric Fraud
AI-Powered
Checks to
Identify
Biometric Fraud

8. ID Document Fraud 2020
Around 19.78% of document verifications were some sort
of document fraud attempt
ID document fraud rate in 2020 was 1.34% higher than
in 2019
China, Egypt, Switzerland, and Sweden showed the
most increase in ID fraud
Two most common strategies for surpassing identity
verification checks are:
Tampering
Creating fake ID documents
08 | ID Document Fraud 2020

9. 09 | ID Document Fraud Rate in 2019 and 2020

10. Synthetic Identity Fraud
Fraudsters consolidate both genuine and false data to
generate a new identity
For instance, an authentic SSN is combined with a fake PII
(Personally Identifiable Information)
According to the Federal Reserve Report, synthetic
identity fraud is the hardest fraud to detect due to
which 85 to 95% of this fraud is not flagged during
identity verification
10 | Synthetic Identity Fraud
IDENTITY FRAUD

11. Fake Documents
Criminals use advance technology to create government-
issued ID documents
The majority of these fake documents are created using
stolen identities
Fake documents are widely used to surpass ID
verification checks during the customer onboarding
Enhanced AI-powered document verification
authenticates the type, origin, hologram, and
rainbow prints
11 | Fake Documents

12. Doctored & Counterfeit IDs
Criminals create multiple versions of stolen identities
These versions are doctored IDs that were widely used to
dodge identity verification checks
Counterfeit identities are copies of real ID
documents
In 2020, digital counterfeit was higher than physical
ID document
12 | Doctored & Counterfeit IDs

13. AI-Powered
Checks to
Identify ID
Document Fraud
13 | AI-Powered Checks to Identify ID Document Fraud

14. Holiday Season and ID
Fraud 2020
This year, the virtual holiday season brought a rise in
fraud attempts
The number of fraud attempts made between January and
October is equivalent to the fraudulent activities in
November and December
Fraud rate:
- during 2020 from January to October 16.63%
- solely in the holiday season (November - December) 20.55%
14 | Holiday Season and ID Fraud 2020

15. 15 | Holiday Season Fraud Rate in 2019 and 2020
Holiday
Season Fraud
Rate in 2019
and 2020

16. Industries with the Highest Rate of ID Fraud in 2020
Finance Sector
Identity theft grew by 13% between
2019 and 2020 in the finance sector
Insurance Sector
There was a 5% increase in
insurance fraud claims in 2020
Gaming Industry
Account takeover fraud significantly
increased in 2020
Government Agencies
Unemployment fraud and pension
fund fraud rapidly increased in 2020
Cryptocurrency
2020 experienced the highest rate of crypto
crimes accounting for USD 1.36 billion
16 | Industries with the Highest Rate of ID Fraud in 2020

17. Predictions for 2021
Synthetic identity fraud will become more common
Replay attacks will increase in 2021
Deep fakes will hinder biometric authentication
Re-victimisation will be the new normal for criminals
Healthcare fraud is expected to grow
Business Email Compromise (BEC) is another emerging
threat for businesses
17 | Predictions for 2021

18. AI-Powered Solutions to
Fight Identity Fraud
Know Your Customer (KYC) identity verification
- Document Verification
- Face Verification
- Address Verification
- Consent Verification
Video Interview KYC
Anti-Money Laundering (AML) Suite
18 | AI-Powered Solutions to Fight Identity Fraud

19. Download Shufti Pro Global
Identity Fraud Report 2020
Contact us
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