- AI-generated documents are replacing traditional forgeries and bypassing verification faster than ever imagined
- Synthetic identity fraud has surged 195% globally, with Europe and North America hardest hit
- Most fraud now happens after onboarding, using tricks like credential stuffing and device spoofing
Synthetic identity document fraud is now spreading at an alarming pace globally, driven almost entirely by the misuse of generative AI, experts have warned.
New data from Sumsub has claimed the creation of fake documents using AI grew by 195% worldwide between Q1 2024 and Q1 2025.
The most dramatic spike was recorded in Europe, where synthetic ID fraud surged by 378%, followed by North America (311%) and the MENA region (258%).
Traditional forgery declines
This trend appears to be gaining ground on traditional document forgery, which has declined sharply in most regions, dropping by 82% in Africa and 50% in North America – with Europe the exception, where traditional forgeries increasing by 33%.
This shift suggests scammers are moving from conventional techniques to AI-generated identities, which can now be produced in seconds using largely unregulated tools.
The industries most affected by this trend include crypto, trading, transportation, fintech, and gambling, all sectors which often rely on rapid onboarding processes and may not yet have strong enough safeguards to detect synthetic documents before damage is done.
Compounding this vulnerability is the fact over three quarter (76%) of fraud now occurs after the onboarding stage, using methods such as device fingerprint spoofing, credential stuffing, and so-called “money muling.”
“The rise of AI-generated fraud is exposing critical flaws in traditional verification systems, and this data shows sophisticated fake documents are becoming a key tool in the fraudster’s arsenal,” said Pavel Goldman-Kalaydin, Head of AI/ML at Sumsub.
“We expect companies like OpenAI to strengthen safeguards controlling the use of its programs to generate passports, IDs, and other personal documents.”
Parallel to this trend is a dramatic rise in deepfake-related fraud, where North America saw a staggering 1,100% increase in such cases, with Europe following at 900%.
Nations like Hong Kong, Singapore, and Germany saw the highest individual surges, raising concerns about the future role of manipulated visual media in identity fraud schemes.
For individuals and organizations trying to protect themselves, relying solely on conventional KYC protocols may no longer be enough. Businesses are advised to use identity management software and multi-layered verification systems for stronger protection.
Consumers should also consider top-rated ID theft protection solutions, especially those that monitor for synthetic identity use. Using reputable people search tools can add an extra layer of safety when verifying unknown contacts or confirming someone’s legitimacy online.
