Identity Fraud Soars 137% in Latin America, Driven by Deepfakes

Identity fraud experienced a 137% growth in Latin America and the Caribbean during 2024, with an average annual increase of 53% in Mexico, according to Sumsub's Global Fraud Index. This phenomenon is driven by the proliferation of deepfakes and the widespread use of social networks, factors that facilitate the manipulation of personal data and impersonation.

"It is possible to buy a minute of a simulated video of a person for biometric tests in banking apps, using information obtained from social networks or videos on the net," says Isabel Manjarrez, Researcher, Kaspersky, to Expansión. "It is possible to do this with the information that the same person gives in their social networks or in videos posted on the network and with AI support."

For example, tools to create advanced deepfakes can be bought at "affordable" prices on the deep web, allowing criminal groups to market deepfakes designed to simulate biometric authentication, says Manjarrez. This particularly affects neobanks and digital platforms, where users' identities are digitally verified.

"By obtaining these illegal credentials, cybercriminals gain access to personal and financial information, enabling various forms of online fraud, such as unauthorized purchases or identity theft," says Arturo Torres, FortiGuard Labs Security Strategist for Latin America and the Caribbean, Fortinet.

The increase in identity fraud is directly related to the growing digitization and reliance on technology in financial services. Sumsub's report highlights that a fraudulent group could generate monthly profits of up to US$2.5 million by investing only US$1,000 in illicit tools, revealing the high profitability of these practices.

Actions Against Threats

The National Banking and Securities Commission (CNBV) has implemented prevention strategies that include advanced analytical tools to detect suspicious transactions. These measures seek to mitigate the significant losses that can emerge from these incidents. In 2024, a fraud event cost an average of US$300,000, according to Verizon’s Data Breach Investigations Report, reports Security Magazine.

However, the industry faces an ever-evolving battle. As the report notes, cybercriminals continue to adopt more and more sophisticated tools, including automation and AI, emphasizing that companies must implement multi-layered solutions that combine AI, behavioral analytics, and robust verification methods to be prepared.

Looking ahead to 2025, companies will need to strengthen their defenses against digital threats, but users also play a crucial role. Curbing the publication of personal information on social networks could be an effective measure to mitigate risks, while cybersecurity education and greater awareness of the risks of sharing data online could reduce breaches and protect both individuals and companies, reports Expansión.