Biometrics Combat AI Fraud in Finance

Published Date : 7/10/2025 

A new report highlights how biometrics are becoming the top defense against AI-driven fraud in finance, with 38% of consumers trusting face recognition as their preferred security method. The study also reveals a surge in deepfake incidents and the growing reliance on AI for both fraud and prevention. 

The rise of AI-powered fraud has forced financial institutions to rethink their security strategies. According to Veriff’s latest “The Future of Finance” report, online identity verification fraud in financial services has skyrocketed, with AI tools enabling more sophisticated attacks. The data shows that fraudulent attempts now make up one in 20 verifications, marking a 21% year-over-year increase. This trend is alarming, as over a third of U.S. consumers reported non-refundable financial losses from fraud in the past year, underscoring the urgent need for stronger safeguards. n nIra Bondar, Senior Fraud Group Manager at Veriff, emphasizes the growing threat: “Industry research consistently shows a sharp rise in deepfake incidents across multiple sectors, including financial fraud.” He notes that in the first quarter of 2025 alone, reported deepfake cases nearly matched the total from all of 2024. This rapid escalation has made trust a critical factor for consumers, with 82% stating they would avoid financial platforms they perceive as insecure. n nBiometrics have emerged as the most trusted solution, with 38% of consumers naming them as their top choice for security. Face biometrics, in particular, are gaining traction, aligning with previous findings that show growing consumer comfort with selfie-based verification for online transactions. Bondar explains, “Biometrics, identity verification, and AI are essential for financial firms to maintain customer trust while meeting compliance standards.” n nThe report also highlights the dual role of AI in both enabling and combating fraud. Over 60% of financial firms report that fraudsters are increasingly using AI to execute attacks, but defenders are fighting back. A significant 64% of U.S. cybersecurity professionals already use machine learning or AI for fraud prevention, with another 20% planning to adopt these tools within the next year. Despite these efforts, 89% of senior fraud decision-makers expect fraud to rise in 2025, driven largely by AI’s evolving capabilities. n nVeriff’s “The Future of Finance” report combines internal data from its Identity Fraud Report with insights from industry experts. The full study, available on Veriff’s website, provides a comprehensive look at the challenges and innovations shaping financial security. As AI continues to reshape the landscape, the need for robust, adaptive solutions like biometrics becomes even more critical for protecting both businesses and consumers. n nVeriff, a leading provider of digital identity verification, has been at the forefront of developing AI-driven security tools. The company’s platform leverages machine learning and biometric authentication to verify users in real time, reducing the risk of fraud while streamlining customer onboarding. With the financial sector facing unprecedented threats, Veriff’s solutions are increasingly seen as a vital defense against AI-powered scams. n nThe report also touches on the broader implications of AI fraud for the financial industry. As attackers refine their techniques, institutions must invest in advanced technologies to stay ahead. This includes not only biometrics but also behavioral analytics and multi-factor authentication. The challenge lies in balancing security with user experience, ensuring that safeguards do not hinder convenience for customers. n nConsumers are also becoming more aware of the risks, with many actively seeking out platforms that prioritize security. This shift in behavior is driving demand for transparent, reliable verification methods. For financial firms, this means investing in technologies that not only protect against fraud but also build long-term trust with users. n nAs the battle against AI fraud intensifies, the role of biometrics is likely to expand. With their ability to provide unique, difficult-to-replicate identifiers, face recognition and other biometric modalities are proving to be a game-changer. However, experts caution that no solution is foolproof, and continuous innovation will be necessary to counter emerging threats. n nIn summary, the report paints a clear picture of a financial sector in transition. AI is both a threat and a tool, and biometrics are emerging as a cornerstone of modern security strategies. For consumers, the message is clear: choosing platforms with strong fraud defenses is more important than ever. For businesses, the challenge is to adapt quickly, leveraging cutting-edge technologies to protect their customers and maintain their reputation. 

Frequently Asked Questions (FAQS): 

Q: Why are biometrics considered the top choice for fraud prevention?

A: Biometrics, particularly face recognition, are trusted because they provide unique, hard-to-fake identifiers. Consumers value their convenience and security, making them a preferred method for verifying identity in financial services.

Q: How is AI being used in financial fraud?

A: AI enables fraudsters to create deepfakes, automate attacks, and bypass traditional security measures. This includes fake identities, manipulated videos, and sophisticated phishing schemes that are harder to detect.

Q: What role does Veriff play in combating AI fraud?

A: Veriff develops AI-driven identity verification tools that use biometrics and machine learning to detect and prevent fraud. Their solutions help financial institutions secure transactions while ensuring a seamless user experience.

Q: Are AI-based fraud prevention tools effective?

A: Yes, but they require constant updates. 64% of cybersecurity professionals already use AI for fraud detection, and many more plan to adopt it. However, fraudsters are also leveraging AI, so the battle is ongoing.

Q: What can consumers do to protect themselves from AI fraud?

A: Consumers should choose financial platforms with strong security measures, like biometric verification. They should also stay informed about emerging threats and avoid sharing sensitive information through unverified channels. 

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