Global surge in AI-powered synthetic identity fraud hits fintech and healthtech
Synthetic identity fraud powered by generative AI has surged globally by 195%, with criminals using AI-generated documents and deepfake credentials to bypass verification systems faster than traditional forgery. The surge is particularly pronounced in Africa, Europe, and North America, with fintech and professional services sectors reporting elevated fraud rates and most fraud occurring after account onboarding.
What happened
Synthetic identity fraud has surged 195% globally, with Europe and North America hardest hit, driven by the misuse of generative AI to create forged identity documents.
In Africa, synthetic document fraud grew 480% year-on-year in South Africa, 184% in Tanzania, and 192% in Nigeria, as criminals shift from traditional forgery to AI-powered credential generation.
Reported impact
Most fraud now occurs after onboarding, using techniques like credential stuffing and device spoofing to bypass verification systems.
Financial services and professional services sectors report elevated fraud rates, with nearly 6% of verification attempts flagged as fraudulent in Africa's fintech sector in Q1 2025.
Index analysis
Traditional document forgery has declined sharply across Africa—Nigeria saw an 80% drop, South Africa a 73% drop—as verification systems improve, but criminals are adopting synthetic identity fraud as a faster method to bypass controls.
Scammers use AI-generated documents and deepfake credentials to replace traditional forgeries and circumvent identity verification faster than institutions can adapt their security measures.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.