Identity fraud is rising sharply, with 69% of organisations globally experiencing increased identity fraud attempts over the past two years.
According to The Future of Global Identity Verification study by Docusign and Entrust, businesses lose an average of US$7 million ($9.19 million) annually to identity fraud, factoring in chargebacks, remediation costs, and brand damage.
Banks and financial institutions are bearing the brunt of identity fraud, with 51% of respondents globally reporting annual losses exceeding US$1 million. The bulk of attacks occur during account setup or payment authorisation, where gaps in identity verification (IDV) are most vulnerable to exploitation.
Retailers and e-commerce platforms are not far behind. Fraud typically surfaces at checkout or during chargebacks-often after the transaction is complete, making early detection critical. As digital trust becomes a key driver of brand loyalty and conversion, modern identity verification tools can help companies meet real-time customer expectations without compromising security.
The study also reveals that fraud is far more prevalent when companies rely on basic authentication methods. Fifty-one percent of organisations experienced fraud involving usernames and passwords, compared to just 21% with facial biometric liveness detection, which highlights the growing need for smarter, adaptive verification tools.
The return on investing in modern identity verification is compelling. Companies that prioritised advanced IDV solutions reported annual savings of US$8 million on average, were 1.7 times more likely to curb identity fraud significantly, and 1.6 times more likely to see a boost in brand trust.
See also: AI-assisted scams on the rise, says Microsoft
"A misconception about fraud prevention is that stronger security comes at the cost of user experience. Modern IDV solutions and adaptive authentication enable them both. End-users can verify their identity with a quick biometric selfie, while fraud checks such as device recognition, AI-powered deepfake detection run in the background. Adaptive authentication completes the identity lifecycle security and further enhances security by adjusting requirements based on risk signals, ensuring protection without unnecessary friction," says Tony Ball, president of Payments and Identity at Entrust.
"As identity fraud escalates, enterprises are increasingly pressured to strike the right balance between security and seamless user experiences. This global study reinforces a critical truth: stronger security doesn't have to come at the cost of customer experience-in fact, it enhances it," says Kartik Krishnamurthy, Docusign's vice president for Asia.
He continues: "By implementing intelligent, low-friction security measures that are part of the Docusign ID Verification portfolio, businesses can create the right balance between building trust, protecting customers, and driving long-term engagement in an increasingly digital world."
