Cyber threats are becoming more advanced and harder to spot. The 2026 Entrust Identity Fraud Report shows a sharp increase in the use of deepfakes and social engineering tricks. Fraudsters are using artificial intelligence to create convincing fake images, videos, and messages, making it tougher for organizations to protect identities and avoid financial losses.

Deepfake Technology and Its Growing Impact

Deepfakes now represent about 20% of biometric fraud attempts. In 2025, incidents involving fake selfies shot up by 58%. Attackers use 2D and 3D masks, screen captures, and video editing to fool verification systems. These fake images and videos can be so realistic that they often slip past security checks, making it easier for criminals to commit fraud.

Injection attacks are also on the rise, increasing 40% from the previous year. These attacks involve feeding manipulated images or videos directly into biometric authentication systems. This allows fraudsters to bypass live checks and gain access to accounts without needing real biometric data. Such techniques make it harder for security systems to distinguish between real and fake biometric inputs.

Fraud Across Industries and Customer Interactions

The type of fraud varies depending on where and how customers are engaged. Cryptocurrency platforms see the highest level of onboarding fraud, accounting for 67% of attempts. Many of these fake sign-ups are driven by fake incentives to lure new users. Long-term accounts, especially in digital banking, face high risks of account takeover (ATO). Around 82% of payment-related fraud and 55% of digital banking fraud attempts involve hijacking user accounts.

Fraudsters often steal credentials through phishing emails, malware, or social engineering. Once they gain access, they can manipulate accounts or steal funds. Beyond technical methods, criminals increasingly rely on psychological tricks like impersonation, coercion, and deception. These tactics make it easier to trick people into revealing sensitive data or transferring money without realizing they are being scammed.

The report also highlights a rise in document fraud. Digital forgeries now make up 35% of identity fraud cases in 2025, up from 29% in previous years. Physical counterfeits are still common, representing about 47% of cases. As digital forgery techniques become more sophisticated, detecting and stopping these fake documents becomes even more difficult for security teams.

Overall, the report warns that these evolving threats demand new strategies and stronger safeguards. Organizations need to stay ahead of increasingly convincing deepfakes and social engineering tactics to protect their customers and assets effectively.

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• https://ai-techpark.com/entrust-2026-report-shows-surge-in-deepfakes-social-engineering-attacks/