Prevalence of fraud-as-a-service models eroding online trust at speed: Jumio

Digital trust is “crumbling” under an avalanche of synthetic media, misinformation and deepfake fraud, according to a new report from Jumio.

The firm’s fourth annual Jumio Online Identity Study surveyed 8001 adult consumers split equally between the U.S., Mexico, the UK and Singapore, and they have much in common: namely, a growing fear that so-called AI-powered fraud now poses a greater threat to personal security than traditional forms of identity theft – and a corresponding rise in skepticism about anything and everything online.

Fraud-as-a-service (FaaS) ecosystems have erupted like a bad rash, enabling even amateur fraudsters to leverage synthetic identities, deepfake videos and botnet-driven account takeovers. Consumers must navigate scam emails, manipulated social media content and digitally altered identity documents.

A release highlights the result: “seven out of 10 global consumers (69 percent) indicated they are more skeptical of the content they see online due to AI-generated fraud than they were last year.”

“As generative AI continues to lower the barrier for sophisticated scams, Jumio’s findings highlight an urgent need for businesses to rethink digital identity protection – not only to reduce fraud, but also to preserve customer trust and digital engagement itself,” says Bala Kumar, chief product and technology officer at Jumio.

When asked who they trust most to protect their personal data, 93 percent of respondents said they trust themselves over government or Big Tech. But, says Jumio, “self-reliance does not mean consumers want to go it alone. In fact, when asked who should be most responsible for stopping AI-powered fraud, 43 percent pointed to Big Tech, compared to just 18 percent who chose themselves.”

The research shows that consumers are open to modernized fraud protection, even if it means additional steps: “most respondents globally said they would be willing to spend more time completing comprehensive identity verification processes, especially in sectors where stakes are high,” like banking or healthcare.

But it also recognizes that technology alone is not the answer. In the words of Jumio CEO Robert Prigge, “building a trustworthy digital world depends on strong consumer education and transparency.” With day-to-day worries about generative algorithmic technologies on the rise, the trust gap also continues to grow proportionally. As such, “businesses must also earn consumer trust in these protections.”

Article Topics

AI fraud  |  biometrics  |  deepfakes  |  digital identity  |  digital trust  |  fraud prevention  |  generative AI  |  Jumio  |  synthetic identity fraud