As artificial intelligence becomes more accessible, so too do the tactics used by fraudsters. Deepfakes, synthetic identities, automated phishing and large-scale credential stuffing attacks are increasingly common in mainstream fraud operations.
For organisations operating in regulated sectors, this presents a major challenge. How do you build secure onboarding and verification journeys that can stand up to a new generation of AI-powered fraud?
The answer lies in adopting the right strategies, safeguards and data-driven processes to detect, prevent and respond to these emerging threats.
The growing threat of AI-enabled fraud
AI tools are now capable of mimicking human behaviour, generating realistic fake documents, cloning voices and images and even engaging in convincing real-time chats. These capabilities enable fraudsters to:
- Bypass identity verification checks
- Create synthetic identities at scale
- Automate phishing or social engineering
- Exploit weak onboarding processes
In response, the UK government has flagged the use of generative AI as a significant fraud risk, warning that organisations must urgently “assess and reinforce existing controls”.
Key strategies to help you prevent AI fraud
There are clear, actionable steps organisations can take to protect their onboarding processes, customer journeys and reputations. Here are some of the most effective strategies to help you stay one step ahead.
Strengthen identity verification against deepfakes and synthetic IDs
One of the most effective ways AI fraudsters infiltrate systems is through synthetic identities (digitally-created personas made from fake or stolen data). These can also be paired with deepfakes (AI-generated imagery or video) to pass superficial ID checks.
As a barrier of defence, businesses can integrate live facial recognition checks into the onboarding process as well as cross-reference documents and data points from multiple sources. Deploying document verification systems also help spot forgeries or tampered profiles. Static KYC checklists aren’t enough, organisations need real-time verification combined with robust document scrutiny to filter out AI fraud.
Implementing friction at the right moments
The balance between user experience and security is more delicate than ever. Too much friction and you potentially lose customers. Too little, and you let fraudsters through. That’s why stepping-up verification adding friction only when risk is detected is so important.
Using OTPs or biometric checks when a session triggers behavioural red flags or asking for additional documentation if certain fields don’t match historical data are key examples. You can also block or relay activity if a device has previously been associated with fraud. This makes the process harder for AI frauds rather than your actual customers.
Build a verified audit trail for every action
AI fraudsters rely on anonymity, and systems with weak traceability or fragmented records become easy targets. The best defence in these cases is a fully verified, timestamped audit trail. Your system should log when and how identity was verified, which device and location were used as well as consent, communications and document interactions.
With this data, organisations can easily dispute fraud claims and support investigations. On top of this, a clear audit trail brings various other benefits when it comes to regulatory audits and providing evidence. It’s a win-win.
Utilising an end-to-end onboarding system that integrated ID verification and e-signatures
One of the most effective ways to reduce exposure to AI-enabled fraud is to eliminate the gaps that fraudsters exploit. Disjointed tools and manual handoffs between ID checks, document collection and e-signatures create vulnerabilities, especially when synthetic identities are involved.
An integrated onboarding platform that combines identity verification, document presentation, consent capture and e-signature functionality within a single, secure workflow helps close these gaps. It ensures that:
- Every signature is backed by a verified identity
- Consent and authorisation steps are fully auditable
- Data is captured and stored securely, in compliance with regulatory expectations
By unifying these steps into one secure flow, organisations can create a stronger, more defensible onboarding process that’s far harder for AI-enabled fraudsters to manipulate.
Fraud is evolving, so your onboarding process must too
AI is transforming the fraud landscape. Attackers are faster, more scalable and more difficult to detect than ever before. That’s why organisations need to build fraud prevention strategies that go beyond traditional controls and are equipped to handle modern risks, from deepfakes to synthetic identities and everything in between.
Bonafidee helps regulated firms reduce fraud risk with secure, compliant onboarding journeys that incorporate document verification, ID checks, consent logging and evidence collection all designed to withstand the tactics of today’s AI-driven fraudsters.
Want to strengthen your fraud prevention efforts? Explore how Bonafidee can help you verify trust, reduce risk, and stay compliant in an AI-powered world by downloading our guide below.
