Terry KS Sumsub’s 2025-2026 Identity Fraud Report highlights a surge in sophisticated digital fraud across APAC, driven by AI and fraud-as-a-service tools, with deepfake and synthetic identity attacks rising sharply. The report underscores the growing threat to businesses and consumers as fraudsters adapt to regional security measures.
SINGAPORE, 26 NOVEMBER 2025 – Sumsub, a global leader in verification and anti-fraud solutions, has unveiled its fifth annual Identity Fraud Report for 2025-2026, revealing a significant shift in the landscape of digital fraud. Dubbed the “Sophistication Shift,” the report highlights the growing threat of AI-driven fraud, fueled by the rise of fraud-as-a-service tools and increasingly professionalized tactics. While global fraud volumes stabilize, the report shows a staggering 180% year-over-year (YoY) increase in high-quality fraud attacks, particularly in the Asia-Pacific (APAC) region.
The report draws on millions of verification checks and over 4 million fraud attempts worldwide, alongside insights from Sumsub’s 2025 Fraud Exposure Survey, which gathered responses from more than 1,500 industry professionals. Among the most concerning findings was the rapid increase in synthetic identity fraud, which surged by 142% YoY in APAC, now representing 15.7% of all fraud attempts in the region. This form of fraud, which involves creating entirely fabricated identities using stolen and synthetic personal data, has become a major concern for both businesses and consumers.
The APAC region, which has long been a hotspot for digital fraud, is seeing a dramatic shift in fraud tactics. According to Penny Chai, Vice President for APAC at Sumsub, “The fraud landscape in APAC has changed faster in the past twelve months than in the previous five years combined. In 2025, while some mature economies saw a decline in overall fraud rates, the rise of deepfakes and synthetic identities has been more rapid than anywhere else in the world.”
Notably, APAC has seen deepfake-related fraud incidents grow exponentially, with countries like the Maldives, Malaysia, and Mongolia reporting YoY growth rates of over 2000%, 400%, and 200%, respectively. In Singapore, while the overall fraud rate dropped by 12%, deepfake-related scams surged by over 158%, driven largely by impersonation and fraudulent e-wallet registrations.
One of the more alarming trends identified in the report is the rise of AI-driven fraud agents. These autonomous systems, which leverage generative AI, automation, and behavioral mimicry, are now capable of carrying out full verification attempts from start to finish. What started as a few isolated incidents in 2025 is expected to grow rapidly by 2026, with AI bots orchestrating complex attacks involving fake IDs, deepfakes, and human-like interactions in real time.
The report also highlights that fraud is increasingly being treated as a criminal offense in APAC, with 60% of companies reporting fraud incidents to law enforcement, far surpassing Europe’s 29%. Despite these efforts, however, the region remains fragmented in its approach to fraud prevention. While countries like Hong Kong, Singapore, and Australia have benefited from strong regulations and saw a reduction in fraud rates, other markets such as Malaysia and Pakistan continue to experience significant growth in digital fraud, partly driven by rapid digital adoption.
For businesses and consumers in APAC, the rising sophistication of fraud presents new challenges. Sumsub’s report stresses the need for dynamic, multi-layered verification systems that go beyond static checks to include real-time, adaptive measures. As digital fraud tactics continue to evolve, organizations must prioritize advanced fraud detection methods that can identify both human and non-human attackers, while also adapting to the region’s increasingly complex fraud landscape.
To stay ahead of the curve, companies must invest in next-generation verification technologies that incorporate device telemetry, behavioral analysis, and contextual signals to detect AI-driven fraud and other sophisticated tactics. The report concludes that securing the digital economy in APAC will require a shift toward systems that evolve alongside fraud tactics, ensuring continuous trust across every digital interaction.