Proof, an identity authorization network, has released “The Trust Ledger: Transaction & Identity Fraud Bulletin,” a new report detailing the evolving landscape of identity fraud, which is increasingly driven by generative artificial intelligence (AI), synthetic identities, and stolen credentials.
The report, which leverages Proof’s proprietary platform data, threat research, and insights from fraud leaders across various sectors, indicates that traditional defense mechanisms are struggling to keep pace with the accelerating growth of fraud. While the FBI reported internet crime losses reaching $16 billion in 2024, representing a 33% year-over-year increase, Proof’s data suggests the actual scale of fraud may be significantly larger, particularly as attacks become more targeted and difficult to detect.
Pat Kinsel, CEO of Proof, commented on the shift: “Fraud today doesn’t look like it did five years ago. It’s synthetic, it’s autonomous, and it’s scaling. We’re seeing high-risk interactions involving billions in assets—across industries that never considered themselves fraud targets before. Therefore, trust must now be engineered. In a world where identity can be convincingly faked and monetized at scale, businesses, consumers, and policymakers must urgently adapt.”
The report highlights that many organizations lack clear metrics to track or quantify fraud, with nearly 30% of respondents in Proof’s survey of fraud leaders and enterprise customers indicating no reliable measurement method across their systems. The majority reported an increase in fraud attempts, with AI-generated forgeries, document tampering, and impersonation cited as common tactics.
John Heasman, Chief Information Security Officer at Proof, stated, “The threat landscape has changed. We’re not just seeing more fraud—we’re seeing a different kind of fraud. AI tools are making it easier to fake documents, mimic voices, and defeat legacy systems. We need to modernize our defenses around real-time detection, high-assurance identity, and smarter fraud signals.”
Key findings from the bulletin include: Older adults (aged 60–64) are both the most targeted group for identity fraud and the most proactive in utilizing identity verification services, nearly doubling the usage rate of individuals aged 20–24. Fraud is also expanding beyond payments to broader operational areas, with property managers, HR teams, and utility companies reporting a spike in identity-based fraud.
The “New Fraud Economy” section details the rise of synthetic identities, which blend real and fabricated information to bypass traditional Know Your Customer (KYC) checks, often employing AI-generated documents and matching selfies. Fraudsters are also misusing legitimate tools, such as access to platforms like TLOxp, which were originally designed for law enforcement and financial institutions. Stolen identity “fullz” are available for as little as $3 on the dark web, with infostealer malware and commercial credential marketplaces fueling a data supply chain that enables large-scale fraud-as-a-service operations. Generative AI tools like FraudGPT and WormGPT are explicitly marketed for phishing, malware creation, and social engineering campaigns, with subscription prices starting from $200 per month.
The report also proposes a modern policy framework to address the surge in AI-powered fraud attempts, emphasizing streamlining access to critical technologies and redesigning fraud prevention strategies, particularly in high-risk sectors such as finance, healthcare, and energy.
Proof’s platform, which includes its AI-powered Defend product, processes millions of high-risk transactions monthly. The platform detects deepfakes, synthetic identities, and credential tampering in real time by leveraging over 100 distinct risk signals. Proof empowers companies to verify who is behind every digital interaction, securing transactions with compliance and fraud prevention. The company is trusted by over 7,000 organizations across financial services, government, real estate, and healthcare, and is backed by investors including TrueBridge, Wells Fargo, Citi Ventures, and State Farm Ventures.
