Jun 30, 2025

AI-Generated Fraud Surges 62% YoY Even as Consumer Concern Drops June 30, 2025 Digital Trust Index Exposes Dangerous Confidence Gap as 70% of Consumers Report That Scams Harder to Detect Sift, the AI-powered fraud platform delivering identity trust for leading global businesses, today released its Q2 2025 Digital Trust Index, revealing a troubling disconnect between consumer confidence and actual vulnerability to AI-generated fraud. The report exposes a dangerous “confidence paradox” where scam sophistication is outpacing consumer awareness, creating unprecedented risks for businesses and their customers. The Confidence Paradox: When Familiarity Breeds Vulnerability Despite growing familiarity with GenAI, the data reveals a concerning trend: 27% of those targeted by GenAI have been successfully scammed, a 62% increase from 2024. This surge occurs even as consumer concern about AI fraud has dropped significantly—from 79% in 2024 to just 61% today, an 18-point decrease that signals dangerous complacency. Scam sophistication is outpacing consumer defenses. According to the Sift-commissioned survey, 70% of consumers say scams have become harder to detect in the past year. Yet paradoxically, overall fear of AI-powered fraud is declining, creating a perfect storm for cybercriminals. Generational Divide: Digital Natives Most at Risk The report reveals a striking generational paradox. Gen Z and Millennials—the demographics most comfortable with AI technology—report the highest confidence in identifying scams (52% and 44%, respectively) yet are successfully victimized at alarming rates (30% and 23%). In contrast, Gen X and Baby Boomers express lower confidence (30% and 13%) but demonstrate more cautious online behavior, resulting in lower scam success rates (19% and 12%). Enterprise Risk: Consumer Data Practices Expose Businesses Beyond individual fraud, the report uncovers significant enterprise security risks. Despite widespread privacy concerns, 31% of consumers admit to entering personal or sensitive information into GenAI tools. Among this group, the most commonly shared data includes email addresses (55%), phone numbers (49%), home addresses (44%), and financial information (33%). Most alarmingly, 14% admitted to sharing company trade secrets, creating dual exposure for both individuals and their employers. Behavioral Patterns Reveal Cybercriminal Operations Analysis of Sift’s Global Data Network, which processes over 1 trillion events annually, reveals distinct behavioral signatures that differentiate fraudsters from legitimate users. Key findings include: Fraudsters use 36% more payment methods than legitimate users Criminal networks employ 20% fewer IP addresses, suggesting coordinated operations Peak fraud activity occurs during late-night hours (10 p.m. to 5 a.m. local time) when many fraud teams are offline The Business Imperative “AI-generated scams and deepfakes are proliferating with speed and concerning sophistication, leaving even the most informed consumers at risk,” said Kevin Lee, SVP of Customer Experience, Trust & Safety at Sift. “Businesses must fight fire with fire—using AI to secure identity trust at every customer touchpoint, which ultimately creates better consumer experiences, mitigates fraud, and fosters profitable growth.” The full findings from Sift’s Q2 2025 Digital Trust Index are available here Explore  AITechPark  for the latest advancements in AI, IOT, Cybersecurity, AITech News, and insightful updates from industry experts! GlobeNewswire GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public. previous post