From Q1 2023 to Q1 2024, there was a 245 per cent
increase in deepfakes because AI is becoming so easy to use. It can easily build you a deepfake image based on stolen documents like cards and passports, for
example. All you need to do is download an application, pay €5, and it can build me a deepfake instantly.
GIEDRIUS ARBACIAUSKAS Transaction Monitoring Technical Manager, Sumsub
Tackling Financial Crime A Cat and Mouse Game
Sitting down on the Sumsub booth at SiGMA East Europe, Giedrius Arbaciauskas, Transaction Monitoring Technical Manager, explains why strong biometric verification capable of detecting advanced deepfakes is now a must in deterring fraud.
According to Sumsub's recent iGaming Fraud Report, iGaming fraud increased by an average of 64 per cent year-over-year between 2022 and 2024. By country, Bangladesh is leading the charts with a whopping 8.5 per cent of all applicants being fraudsters, followed by Indonesia on eight per cent. While the volume of fraud cases remains high in developing countries, the situation is worsening in developed markets - with deepfakes and other sophisticated fraud becoming much more prevalent. South Korea is the first developed country to reach top five fraud countries based on Sumsub's data. Almost 80 per cent of fraud happens at the biometrics stage. Selfie mismatch is even more prevalent in 2024, with Liveness bypass sharply growing in popularity.
"From Q1 2023 to Q1 2024, there was a 245 per cent increase in deepfakes because AI is becoming so easy to use. It can easily build you a deepfake image based on stolen documents like cards and passports, for example. All you need to do is download an application, pay €5, and it can build me a deepfake instantly. Kids can do it. From a Sumsub perspective, we are releasing more features driven by AI, but also aimed to tackle AI misuse. It's like a cat and mouse game. It's the concept of learning what's happening and trying to stay ahead."
Fraud can happen at any stage of the user journey, even before KYC takes 66
place. Adding KYC to the deposit stage will not guarantee protection from money muling - a scheme that's impossible to detect by KYC checks alone. According to Sumsub's 2023 Identity Fraud Report, money muling is one of the most widespread fraud schemes. Tat same year, Europol, Interpol, and Eurojust identified over 10,000 money mules and 450 recruiters, which led to over 1,000 arrests worldwide.
A money mule is a person recruited by criminals to launder illicit funds. Mules usually have a clean banking history and no criminal record, allowing them to move criminal money without getting noticed. Money mules are recruited through online dating sites or darknet forums by promising easy money or creating job offers that appear legitimate.
"Money muling isn't limited to the gaming industry but fintech and financial institutions too. Te premise is that I can travel somewhere, say a remote village in India, and pay all the villagers $10 to take a picture of them and their identity documents. I onboard them, opening accounts in their names, and start sending small amounts to ensure I don't hit any thresholds that would open me up to investigation. We have developed an interesting solution to combat money muling whereby we monitor patterns, so we see similarities in what device is being used, IP, device fingerprint, time of onboarding, and photo backgrounds. Say we both take
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