The digital landscape is currently grappling with an alarming surge in synthetic identity document fraud, a phenomenon experts largely attribute to the widespread misuse of generative artificial intelligence (AI). This sophisticated form of fraud is rapidly supplanting traditional forgery methods, with AI-generated documents capable of bypassing verification systems at an unprecedented pace.

According to new data from Sumsub, there was a staggering 195% global increase in the creation of fake documents using AI between the first quarter of 2024 and the first quarter of 2025. This dramatic rise was most pronounced in Europe, which witnessed a monumental 378% surge in synthetic identity fraud. North America followed closely with a 311% increase, and the MENA region also experienced a significant spike of 258%.

This escalating trend marks a significant shift away from conventional criminal methods. Traditional document forgery has seen a sharp decline in many parts of the world, notably an 82% drop in Africa and a 50% decrease in North America. Europe stands out as an exception, where traditional forgeries paradoxically increased by 33%. This broader transition highlights how fraudsters are increasingly leveraging AI-generated identities, which can be produced instantaneously with largely unregulated tools, making them a more efficient and effective means of deception.

Several industries are particularly vulnerable to this new wave of fraud due to their reliance on rapid onboarding processes and potentially insufficient safeguards. These include high-growth sectors such as cryptocurrency, trading, transportation, fintech, and gambling. Compounding this issue is the fact that a vast majority—over three-quarters (76%)—of fraud now occurs *after* the initial onboarding stage. Post-onboarding fraud employs various illicit techniques like device fingerprint spoofing, credential stuffing, and the insidious practice of "money muling," making it harder for organizations to detect and prevent.

Pavel Goldman-Kalaydin, Head of AI/ML at Sumsub, emphasized the critical vulnerabilities exposed by the rise of AI-generated fraud. He stated that "sophisticated fake documents are becoming a key tool in the fraudster’s arsenal," underscoring the urgent need for robust countermeasures. Goldman-Kalaydin also expressed an expectation for leading AI companies, such as OpenAI, to enhance safeguards that control the use of their programs in generating sensitive personal documents like passports and IDs.

In parallel with the surge in synthetic identity document fraud, there has been a dramatic increase in deepfake-related fraud. North America has experienced an astounding 1,100% rise in such cases, while Europe recorded a 900% increase. Nations like Hong Kong, Singapore, and Germany have reported the highest individual surges, raising profound concerns about the future role of manipulated visual media in intricate identity fraud schemes.

To combat these evolving threats, individuals and organizations must move beyond conventional Know Your Customer (KYC) protocols, as these may no longer offer adequate protection. Businesses are strongly advised to implement advanced identity management software and multi-layered verification systems to establish stronger defensive barriers. Consumers, too, should proactively consider subscribing to top-rated ID theft protection solutions, especially those designed to monitor for synthetic identity use. Furthermore, utilizing reputable people search tools can provide an additional layer of security when attempting to verify unknown contacts or confirm the legitimacy of individuals encountered online.