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A Human Introduction to a Growing Threat
People across Europe are facing a challenge that often feels invisible until the damage becomes clear. Sumsub, a company known for verification and fraud prevention, released its latest Identity Fraud Report for 2025–2026. The findings point to a shift in how criminals operate. Fraud attempts are becoming more coordinated, more technical and more resilient. This new environment leaves individuals and companies struggling to keep pace with attacks that require fewer attempts yet cause greater harm. The report blends millions of verification checks with findings from its survey of professionals and end users, offering a picture that demands attention from regulators and businesses alike.
The report reveals that complex fraud has risen sharply during the last year. These attacks combine advanced techniques inside a single verification attempt, making them harder for traditional systems to detect. The rise has been so severe that fraud operations now need fewer attempts to succeed. That development underscores the challenge facing companies across Europe, where overall fraud rates appear stable, but the impact on victims continues to grow. Payment systems, identity verification tools and compliance processes are under pressure, and many organisations still rely on outdated methods for fraud prevention.
The Shift Toward Sophisticated Attacks
Sumsub's research shows a global increase of one hundred and eighty percent in sophisticated fraud in 2025. This trend marks what the company calls a “Sophistication Shift.” Attackers are coordinating efforts and using several techniques at once. Fraudsters rely on tools that blend digital manipulation, synthetic content and behavioural mimicry. These operations are designed to evade systems that depend on standalone checks, creating a gap between traditional defences and modern threats.
In Europe, the situation presents a paradox. Fraud rates fell slightly by zero-point-four percent. At the same time, the actual harm to businesses and individuals grew. Companies accustomed to tracking simple attack volumes must now contend with fewer but far more effective attempts. Some organisations depend on manual procedures that cannot adapt quickly. Others depend on external solutions that do not integrate into their core systems. This fragmentation gives criminals room to act, especially when national frameworks differ and cross-border financial flows move quickly.
The study shows how these factors combine to create a risk environment shaped not by quantity but by precision. Fraudsters are choosing methods that leave fewer traces. Deepfakes almost doubled in the United Kingdom, with similar trends across France, Spain and Germany. Document forgeries remain a major threat, accounting for a significant share of fraudulent verification attempts. Many Europeans do not understand the mechanics behind money muling, leaving them vulnerable to scams that rely on unwitting participants.
AI’s Role in Fraud Expansion
Artificial intelligence continues to influence both the offence and defence sides of fraud. Criminals use widely accessible tools to generate realistic identity documents, audio clips and video content. The report notes that household AI products already contribute to a small but growing share of falsified documents. The trend is expected to accelerate next year.
The availability of AI systems enables attackers to create multiple personas at scale. These digital constructs feed into broader fraud operations that stretch across different channels. AI makes it easier to create synthetic identities that appear credible to verification systems dependent on static checks. The ability to produce convincing materials without specialised knowledge means more attackers can conduct operations that once required expert-level skills.
Europe faces an especially difficult challenge because of its regulatory environment. The continent has advanced identity systems and strict compliance rules. It also has complex processes that allow criminals to target points of weakness. Fraudsters can exploit delays, manual reviews and national inconsistencies. This environment makes the region susceptible to modern forms of deception despite significant regulatory investment.
The Industry Under Pressure
Professional services firms have become a major target. These businesses hold sensitive client information and often rely on manual onboarding. The report notes a dramatic increase in identity fraud attempts in this sector. Companies in legal, accounting and consulting fields face higher risk due to the nature of their work. Attackers seek access to confidential data that can be used for financial gain or leveraged in broader schemes.
Online media services remain vulnerable as well. The United Kingdom recorded a notable fraud rate in this category, even with a year-on-year decline. The issue affects businesses that depend on digital channels for revenue and communication. Attackers exploit user accounts, impersonation and synthetic identities to undermine service providers.
The internet dating sector also faces an elevated fraud rate. AI personas and deepfakes allow criminals to create convincing profiles. These tools make romance scams more efficient. Fraudsters use believable characters to manipulate victims and extract value. This type of fraud often leaves people emotionally and financially harmed.
What Companies Are Facing
Businesses across Europe acknowledge the severity of the situation. Many reported financial losses tied to fraud in 2025. Executives also pointed to reputational damage when attacks became public. A significant share of companies still depend on manual processes for fraud prevention. These systems are slow to adapt and cannot detect the fast-changing patterns that define sophisticated attacks.
Sumsub’s analysis argues that the industry needs a different type of defence. Organisations should move away from isolated checks and toward continuous assessment. This means using behavioural data, device telemetry and contextual information together, creating a system that adapts as users interact with digital platforms. Companies need to unify compliance and fraud management into a single structure that can respond to emerging threats quickly.
The report also describes the rise of autonomous fraud agents. These systems can execute complex attacks with minimal human involvement. Criminal operations are beginning to adopt these tools, creating a future where automated agents perform tasks once carried out manually. The risk extends beyond simple impersonation. Attackers may run end-to-end processes that manipulate systems across multiple stages.
Regulatory Developments and Future Direction
Europe is already preparing for the challenges created by AI-enhanced fraud. The EU AI Act, emerging legislation in Denmark and the UK's Online Safety Act show that policymakers recognise the urgency. Regulation alone cannot address the scale of the challenge. Companies and regulators must coordinate more closely to develop systems that keep fraud in check.
The year ahead is expected to bring stable or declining fraud volumes but higher impact per attack. Professionalised fraud operations will grow more common. Automation will make cross-channel manipulation easier. Synthetic identities will become more sophisticated. Fraud-as-a-service toolkits will spread. These trends reflect a future where fewer criminals cause more harm with greater efficiency.
The next frontier in defence may involve verifying AI agents. As users conduct transactions through software that acts on their behalf, organisations must confirm not only the identity of the individual but the legitimacy of the digital systems interacting with them. This development could reshape verification and fraud prevention across industries.
Closing View
Sumsub’s Identity Fraud Report paints a picture of a threat that evolves faster than the systems designed to stop it. Europe appears to be at the center of this transition. The region’s regulatory strength coexists with procedural gaps that criminals exploit. The shift from volume to effectiveness in fraud attacks will define the year ahead. Companies that depend on verification and compliance must reconsider their approach.
The challenges extend beyond isolated incidents. Fraud touches financial institutions, online services, professional firms and individuals. As digital interactions continue to grow, so does the need for systems that can recognise complex attacks in real time. The report makes clear that traditional defences will not meet the demands of the coming year. The companies and regulators that adapt quickly will be better prepared for the changes ahead.
Europe’s fight against identity fraud enters a new phase in 2025–2026, marked by fewer attempts but greater damage. The growing use of advanced tools by attackers signals a future where fraud operations act with precision and speed. Sumsub’s findings highlight the urgency of building verification systems that can match this pace and protect users across the region.
