n an era where digital identity verification is critical, AU10TIX’s latest report shedded light on the alarming rise of sophisticated identity fraud attacks. The Q4 Global Identity Fraud Report, unveiled on March 12, 2024, captured data from millions of transactions across 249 countries and revealed an eight-month-long, highly organized “mega-attack” involving more than 22,000 AI-generated variations of a single U.S. passport.

Mega-Attack exposed: 22,000 AI-generated passport frauds

For the first time, AU10TIX has identified two distinct methods used in identity fraud mega-attacks, labeled as ‘sudden burst’ and ‘slow burn’. The report detailed the former involving a staggering 22,080 fraudulent attempts condensed into a 2-3 week period. Conversely, the slow burn attacks see around 2,000 AI-generated IDs utilized 5-6 times daily over a lengthy span, typically a year, with over ten such instances detected in 2023 alone.

Bitcoin price surge caused increased crypto fraud

The report also highlighted a noticeable uptick in attacks targeted at the cryptocurrency sector, fueled by the surge in price of Bitcoin. The fluctuation from 23% of global attacks in Q3 to 32% in Q4, while still below the Q2 spike of 47%, underscores the persistent vulnerability within this arena, especially in regions lacking stringent regulations similar to Europe’s MiCA.

Crypto and Social Media in the Crosshairs

Predominantly, these mega-attacks have targeted the payments and cryptocurrency sectors, echoing the immutable link between financial services and fraud risks. A surprising revelation from the report is the significant uptick (over 21%) in attacks against the social media sector, likely aimed at building social credibility for fake accounts for criminal activities, including money laundering and terrorism financing.

Dan Yerushalmi, CEO of AU10TIX, highlighted the company’s strategic advantage in battling identity fraud, “By cross-referencing anonymized ID data against AU10TIX’s consortium of 60+ top-tier organizations, we’ve been able to uncover complex fraud patterns that might elude individual entities,” illustrating the collaborative strength embedded in their approach.