Biometrics top consumer choice to fend off AI fraud in finance

Veriff’s latest “The Future of Finance” report reveals that online identity verification fraud in financial services has surged with the rise of AI tools.

Fraudulent attempts now account for one in 20 verifications, which represents a 21 percent increase year-over-year. The annual report also shows that over a third of U.S. consumers suffered a non-refundable financial loss from fraud in the past year, underscoring a mounting threat to both firms and customers.

“Various bodies of industry research universally point to a skyrocketing increase in deepfake incidents across categories, including fraud,” says Ira Bondar, Senior Fraud Group Manager at Veriff.

“In the first quarter of 2025 alone, for instance, the number of reported deepfake incidents nearly matched the total from 2024.”

Trust has become a critical battleground: 82 percent of consumers say they would avoid signing up to a financial platform if they doubt its fraud defenses.

Biometrics emerged as the most trusted safeguard, with 38 percent of consumers naming it their top choice, and face biometrics the most popular modality. This chimes with reports from last year that showed comfort among consumers with selfie biometrics for online transactions.

“Identity, biometrics, and AI hold the keys to financial services firms keeping their customers satisfied and highly secure, while also meeting compliance requirements,” Bondar says.

More than 60 percent of financial firms report that fraudsters are increasingly deploying AI in their attacks. But fire is fighting fire, with defenders also turning to AI — 64 percent of U.S. cybersecurity professionals are already using machine learning or AI for fraud prevention.

Another 20 percent plan to adopt these technologies within the next year. Despite these measures, 89 percent of senior fraud decision-makers expect fraud to climb in 2025, driven chiefly by AI.

The Future of Finance report combines Veriff’s in-house data, included in the Veriff Identity Fraud Report with frontline perspectives. The full report can be read here.

Article Topics

AI fraud  |  biometric authentication  |  biometrics  |  financial services  |  fraud prevention  |  identity verification  |  selfie biometrics  |  Veriff